Houston, TX Housing Market Report

The Houston-The Woodlands-Sugar Land real estate market is currently experiencing a significant shift toward buyer-favorable conditions as of December 2025. With active inventory surging by 18.06 percent year-over-year to 31,689 listings, buyers have substantially more leverage than they did twelve months ago. This influx of supply, coupled with a median days on market of 93 days—a 20-day increase from last year—indicates that the frantic pace of previous years has cooled into a more deliberate and negotiable environment.

Price trends reflect this cooling sentiment, with the median home value settling at $260,121, representing a 3.04 percent decline over the past year. While the market saw a very slight month-over-month uptick in December, the broader six-month trend shows a steady softening from the $262,410 peak seen in July. The sale-to-list ratio of 0.98 suggests that most properties are selling for slightly below their asking price, further confirming that sellers are becoming more flexible to close deals in a crowded marketplace.

Looking ahead, the Houston market offers a unique window of opportunity for prospective homeowners and investors. The rental market has also stabilized, with a median rent of $1,528 showing a marginal annual decrease. For sellers, success in this climate requires realistic pricing and patience, as homes are taking longer to move. For buyers, the combination of increased inventory and softening prices provides a chance to be selective and negotiate better terms, though they should keep a close eye on the slight stabilization in prices observed at the end of the fourth quarter.