Houston homes sitting longer before selling

HOUSTON – (Realty News Report) – Houston homes took longer to sell in January, the latest sign of a market shifting back toward buyers who are no longer limited by slim pickings.

The number of active listings rose 17% over the year to 34,570 single-family homes in January, according to a monthly report from the Houston Association of Realtors. That’s more than triple the number of homes on the market in January 2022.

“Right now, buyers have more choices and a bit more time to make decisions, while sellers are adjusting to a market that’s becoming more balanced,” said HAR Chair Theresa Hill with Compass RE Texas, LLC – Houston. “With rates expected to ease a little this year, buyers who have been waiting on the sidelines may start to feel more confident and enter the market. That should help maintain demand and create additional opportunities for sellers throughout the year.”

Days on the market hits 6-year high

Single-family homes stayed on the market an average of 66 days before selling in January, according to HAR. That up from 61 days on the market a year ago the longest days on the market in nearly six years.

January home sales held fairly steady with a total of 4,999 sales across the greater Houston area, down 1.0% from January 2025. Pending sales, meanwhile, rose 8.5% year-over-year.

The median home price was down 0.9% over the year to $322,045 in February, according to HAR. That compares with $325,000 in February 2025.

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A jump in demand for luxury homes – those priced at $1 million and up – gave the market a boost. The average sales price rose 2.8% over the year to $416,722 in February, according to HAR. Homes sold for an average price per square foot of $171.

Transactions of homes selling for $1 million and up increased by 16% over the year to 209 luxury sales in January, according to HAR. The deal volume in the $250,000 to $499,999 segment, which made up more than half of January’s sales, decreased by 5%.

Affordability improves

Thanks to lower mortgage rates and median home prices, affordability is improving. Buyers need a household income of $91,200 to afford a median priced home in Houston, according to HAR. That’s down 3.4% from a year ago.

Mortgage rates have been hovering near 6%, down from 6.89% a year ago, according to Freddie Mac.

The lower rates could save buyers about $162 on the monthly principal and interest payment for the median price home in Houston compared to last year, according to HAR. The monthly payment, assuming a 20% downpayment, would be $1,561 for a typical house purchased in January 2026.

With the increased supply of homes on the market, buyers and sellers are more likely to close a deal for under the list price nationally and in Houston, according to brokerage firm Redfin.

Houston’s supply of homes on the market expanded to 4.7 months inventory, up from 4.2 months in January 2025. The months inventory estimates how long it will take to sell through the current inventory based on the recent sales pace. Four to six months inventory is considered a balanced market.

Nationally, months inventory averaged 3.3 months, according to the National Association of Realtors.

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