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HOUSTON HOMEBUYERS THANKFUL FOR MORE FLEXIBILITY IN NOVEMBER

Moderating prices and expanding inventory gave buyers more breathing room

HOUSTON — (December 10, 2025) — This November, Houston’s housing market gave buyers and sellers something to be thankful for as conditions continued to move toward balance. 

According to the Houston Association of Realtors’ November 2025 Housing Market Update, single-family home sales dipped year-over-year for the first time since April. A total of 6,347 homes were sold in November, a slight decrease from 6,499 during the same time last year. Pending sales rose 7.2 percent year-over-year, signaling continued demand and ongoing market activity heading into the end of the year.

Home prices continued to slightly moderate in November. The median home price declined 1.5 percent to $325,000, while the average price edged up 0.8 percent to $422,552, driven by more activity in the luxury market.

The luxury segment – comprised of homes priced at $1 million and above and representing just 4.7 percent of all homes on the market – was the top performing sector, with transactions up 23.4 percent year-over-year. Sales activity slowed for homes in the $250,000 to $999,999 price range, which represented 72 percent of all home sales in November, as well as at the lower end of the market.

Reflecting shifting market conditions, the average list-to-sale price ratio declined to 92.2 percent in November, down from October and the lowest level since HAR began tracking the metric in 2001. 

“Houston’s housing market is setting into a balanced pace,” said HAR Chair Shae Cottar with LPT Realty. “Buyers now have more time, more options and a little more breathing room to negotiate. Sellers are still attracting offers, but realistic pricing and expectations make all the difference.”

Housing Market Overview

Sales of all property types across the Greater Houston area declined 2.7 percent year-over-year in November, with 7,475 properties sold. While multi-family properties and country homes saw stronger sales than last year, activity slowed across all other property types. Total dollar volume edged down by 0.8 percent to $3.1 billion.

Inventory levels continued to rise, with active listings increasing 19.4 percent from last year with 57,961 available properties.

Single-Family Homes Update

In November, single-family home sales declined year-over-year for the first time since April, while buyer interest remained steady. A total of 6,347 single-family homes sold versus 6,499 a year ago, which represents a decrease of 2.3 percent.

The median home price was down 1.5 percent to $325,000, while the average price rose 0.8 percent to $422,552. The average price per square foot was $174, slightly lower than $175 last year.

Affordability improved year-over-year for buyers with the average mortgage rate dipping from 6.81 percent in 2024 to 6.24 percent in November 2025, as reported by Freddie Mac’s Primary Mortgage Market Survey. When coupled with an assumed 20 percent down payment, the monthly mortgage payment for principal and interest of the median-priced home dropped from $1,722.84 to $1,599.17 – a savings of $123.67 monthly or $1,484.04 per year. 

Active listings of single-family homes totaled 36,620 in November, up 21.0 percent from last year and the lowest level since April, when 34,362 homes were on the market. Housing supply also reached its lowest point since April, expanding to 5.0 months of inventory compared to 4.3 months a year earlier. For context, the national average currently stands at 4.4 months, according to the National Association of Realtors. 

Homes spent an average of 60 days on the market in November, up from 53 days during the same period last year.

Broken out by housing segments, single-family home sales performed as follows:

  • $1 – $99,999: decreased 2.2 percent (89 transactions)
  • $100,000 – $149,999: increased 10.6 percent (146 transactions)
  • $150,000 – $249,999: increased 3.6 percent (1,240 transactions)
  • $250,000 – $499,999: decreased 6.4 percent (3,561 transactions)
  • $500,000 – $999,999: decreased 7.3 percent (1,009 transactions)
  • $1M and above: increased 23.4 percent (301 transactions)

HAR also breaks out sales figures for existing single-family homes. In November, sales declined by 0.8 percent year-over-year, with 4,131 closings compared to 4,164 a year ago. The average sales price was statistically unchanged at $439,743, while the median price was essentially flat at $325,000. 

HAR will publish its November 2025 Rental Market Update on Wednesday, December 17.

Townhome/Condominium Update

Demand for townhomes and condominiums cooled for the second consecutive month. Sales declined 8.3 percent year-over-year, with 341 units sold compared to 372 in November of last year. Despite the slowdown in sales activity, prices continued to rise, as the average price increased 10.7 percent to $268,628, while the median price rose 2.4 percent to $230,000.

Inventory levels expanded in November, reaching an 8.0-months supply, up from 5.8 months last year.

Houston Real Estate Highlights in November

  • Single-family home sales declined 2.3% year-over-year.
  • Days on Market (DOM) for single-family homes went from 53 to 60 days.
  • The single-family median price declined 1.5% to $325,000.
  • The single-family average price edged up by 0.8% to $422,552.
  • Single-family home months of inventory expanded to a 5.0-months supply, up from 4.3 months a year ago.
  • Townhome and condominium sales were down 8.3% with 341 units sold. The median price increased 2.4% to $230,000, and the average price rose 10.7% to $268,628.
  • Total property sales declined 2.7% with 7,475 units sold.
  • Total dollar volume was down 0.8% to $3.1 billion.

SOURCE: THE HOUSTON ASSOCIATION OF REALTORS (www.har.com/content/mls — December 10, 2025)