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STRONG BUYER DEMAND DRIVES HOUSTON’S AUGUST HOUSING MARKET

Sales surge and inventory remains abundant, creating opportunities for buyers and sellers

HOUSTON — (September 10, 2025) — The Greater Houston housing market kept its hot streak alive in August. It was the fourth consecutive month of sales growth, driven by strong buyer demand and steady pricing.

According to the Houston Association of Realtors’ August 2025 Housing Market Update, single-family home sales rose 11.9 percent year-over-year. A total of 8,138 homes sold versus 7,270 a year earlier. The number of available homes in the Houston area remains elevated with 39,374 active listings, which is 30.4 percent above last year’s level.

Home prices showed little movement in August. The average price was statistically flat at $422,703, while the median price was virtually unchanged at $335,000.

“August brought the strongest sales gains we’ve seen so far this year, and that’s encouraging for both sides of the market,” said HAR Chair Shae Cottar with LPT Realty. “Buyers have more choices and negotiating power than they’ve had in more than a decade while sellers continue to benefit from solid demand. As mortgage rates continue to ease, I anticipate buyer activity will remain solid in the coming months.”

Housing Market Overview

In August, overall property sales rose 9.2 percent year-over-year, pushing the total dollar volume up 10.9 percent to more than $3.8 billion.

Active listings were 26.1 percent higher than the 2024 level, with 60,525 properties available across the market in August.

Single-Family Homes Update

August delivered the strongest year-over-year increase in single-family home sales so far in 2025. Closings were 11.9 percent above where they were in August 2024. Pending sales— newly-signed purchase contracts that are closing in the next 60 days—also outperformed last year’s figures, increasing 10.1 percent.

Home prices remained steady. The average price was statistically unchanged at $422,703 while the median price was flat at $335,000. Likewise, the price per square foot essentially static at $177 in August compared to $176 a year ago.

Active listings were 30.4 percent above last August’s level, driving months of inventory up from 4.4 to a 5.4-months supply of unsold homes. This is higher than the current national supply of 4.6-months, according to the National Association of Realtors. Properties spent a bit longer on the market, with Days on Market rising from 47 to 52.

Broken out by housing segments, single-family home sales in the Greater Houston area performed as follows:

  • $1 – $99,999: increased 20.7 percent
  • $100,000 – $149,999: increased 12.7 percent
  • $150,000 – $249,999: increased 21.2 percent
  • $250,000 – $499,999: increased 6.4 percent
  • $500,000 – $999,999: increased 14.8 percent
  • $1M and above: increased 12.9 percent

HAR also breaks out sales figures for existing single-family homes, which rose 9.7 percent in August compared to last year. There were 5,653 closings compared to 5,153 the prior year. The average price climbed 2.5 percent year-over-year to $437,981, while the median price increased 1.8 percent to $340,000.

HAR will publish its August 2025 Rental Market Update on Wednesday, September 17.

Townhome/Condominium Update

Townhome and condominium sales slid in August as prices declined. Sales were 13.5 percent below last year’s level, with a total of 404 units sold compared to 467 last August. The average price decreased 4.4 percent to $248,799, and the median price was down 7.1 percent to $210,000.

Active listings of townhome and condominiums reached 3,447 in August. Months of inventory expanded to 8.2 in August, matching July 2025 and up from 5.4 a year earlier. This marks the highest supply level since August 2011.

Houston Real Estate Highlights in August

  • Single-family home sales increased 11.9% year-over-year.
  • Days on Market (DOM) for single-family homes went from 47 to 52 days.
  • The single-family median price was statistically flat at $335,000.
  • The single-family average price was statistically unchanged at $422,703.
  • Single-family home months of inventory expanded to a 5.4-months supply, up from 4.4 months last August. This was the greatest August inventory since the 7.1 months recorded in 2011.
  • Townhome and condominium closings declined 13.5% with 404 units sold. The median price declined 7.1% to $210,000, and the average price was down 4.4% to $248,799.
  • Total property sales increased 9.2% with 9,440 transactions.
  • Total dollar volume rose 10.9% to $3.8 billion.

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