Originally published on HAR by Michael Gee with updated Houston insights. Read the full HAR version here.
The Houston housing market has reached a turning point. After several years of uncertainty driven by rising mortgage rates, limited inventory, and shifting buyer expectations, the market has settled into a more predictable rhythm. For homeowners asking whether now is the right time to sell, the data provides clear guidance.
The answer depends on where your home is located, how well you prepare it for market, and whether you can price it competitively from the start.
Houston Home Sales Rebound with 3.8 Percent Growth
Single family home sales across the Houston region totaled 88,634 transactions in 2025, representing a 3.8 percent increase over the prior year. This marks the first sustained growth period after three consecutive years of declining sales. Total property sales rose 2.3 percent, demonstrating renewed confidence among both buyers and sellers.
The median home price remained stable at $335,000 in early 2026, essentially flat compared to a year earlier. While price appreciation has moderated from the dramatic gains of prior years, this stability reflects a market operating on sound fundamentals rather than speculative excess.
For sellers, this environment favors those who understand current market dynamics. The era of automatic price increases and instant bidding wars has passed. Success now requires strategic pricing, strong presentation, and alignment with buyer expectations.
Inventory Expansion Changes the Competitive Landscape
Active listings in Houston climbed to 31,350 homes in December 2025, with months of supply reaching 4.5 months. This represents a significant shift from the severe inventory shortages that defined the market in recent years.
More choices mean buyers can afford to be selective. They compare properties across multiple showings, conduct thorough inspections, and negotiate repairs or credits without fear of losing out to competing offers. For sellers, this means differentiation matters more than ever.
Neighborhoods with substantial new construction face particularly intense competition. In communities like Katy, Cypress, and The Woodlands, builders offer incentives including rate buydowns, closing cost assistance, and upgraded finishes. Resale homes must compete on value, which often requires pricing below builder options or offering comparable concessions.
Mortgage Rates Hold Steady in the Low Six Percent Range
Mortgage rates have stabilized after the sharp increases of 2022 and 2023. As of January 2026, conventional 30 year fixed rate mortgages averaged between 6.0 and 6.3 percent. While these rates remain higher than the historic lows of the pandemic era, they have stopped climbing and may decline gradually through the year.
VA loan rates for military families averaged between 5.6 and 5.9 percent, providing additional affordability for qualified borrowers. With VA loan limits in Harris County increasing to $832,750 for 2026, military buyers can purchase with zero down payment and no private mortgage insurance, making them highly competitive in negotiations.
The rate lock in effect that prevented many homeowners from listing is beginning to ease. As sellers accept that rates are unlikely to return to three or four percent in the near term, more are deciding to move forward with their plans.
Homes Take Longer to Sell as Buyers Conduct Due Diligence
Days on market for Houston single family homes increased to 64 days in January 2026, up from 59 days the previous year. This reflects a return to more traditional market conditions where buyers take time to evaluate properties, schedule inspections, and negotiate terms.
Nearly 28 percent of listings experienced price reductions in early 2026, highlighting the importance of accurate initial pricing. Homes that come to market overpriced often sit for weeks before sellers adjust, losing momentum and attracting lower offers than if they had priced correctly from the start.
For first time buyers and investors, this slower pace creates opportunity. Buyers can complete thorough inspections without waiving contingencies, compare multiple properties before deciding, and negotiate repairs or credits. Sellers who understand this shift and price accordingly will close transactions faster than those clinging to outdated expectations.
Micro Market Performance Across Houston Neighborhoods
Real estate performance varies dramatically across Houston neighborhoods. Understanding these differences is critical for sellers trying to time their listing and price their home.
Inner loop neighborhoods including The Heights, Montrose, and Memorial Villages continue to attract premium pricing. The Heights saw average asking prices of $829,913 with days on market averaging 91 days. Buyers in these areas expect high quality finishes, modern updates, and turnkey condition.
Suburban markets such as Katy, Spring, and Pearland offer more affordability but face direct pressure from new construction. Homes in these communities must differentiate through lot size, location within the neighborhood, or quality of upgrades. Pearland home values declined 0.9 percent over the past year, reflecting expanding supply.
Luxury properties in River Oaks, West University, and Memorial Villages remain strong. Homes priced above $500,000 saw sales activity increase 13.4 percent in December 2025, demonstrating continued demand at the high end.
VA Loans Provide Strong Purchasing Power for Military Families
Military families represent an important segment of the Houston real estate market. With installations like Ellington Field and a substantial veteran population, VA loan activity continues at high levels.
VA loans offer significant advantages that make military buyers highly competitive. Zero down payment requirements eliminate the need for large upfront cash outlays. No private mortgage insurance reduces monthly payments by $200 to $300 compared to conventional loans with minimal down payments. VA appraisals include minimum property requirements that protect buyers from purchasing homes with major structural or safety issues.
For sellers, VA buyers often bring strong purchasing power despite the zero down structure. Understanding VA appraisal requirements and ensuring your home meets basic property standards can prevent delays and ensure smooth transactions.
Strategic Approaches for Houston Sellers in 2026
Selling successfully in the current market requires a disciplined approach. Pricing must reflect recent sales of comparable homes in your specific neighborhood, not what homes sold for during the peak market of 2021 or 2022. Presentation matters significantly, as buyers compare multiple options before submitting offers.
Spring remains the optimal season for listing homes in Houston. Properties that come to market between March and May benefit from the largest buyer pool, favorable weather for showings, and families motivated to move before the new school year.
Sellers in high supply neighborhoods should consider offering concessions such as closing cost credits or home warranties to make their property more attractive. In Texas, seller closing costs typically range from 3.5 to 10 percent of the sale price, with agent commissions representing the largest portion. Strategic concessions can differentiate your home without reducing your list price.
Common Mistakes Houston Sellers Should Avoid
The most significant errors sellers make in balanced markets stem from unrealistic expectations. Listing above market value to leave room for negotiation typically backfires, as buyers simply skip overpriced properties. Neglecting necessary repairs or failing to stage properly reduces appeal compared to move in ready alternatives.
Ignoring feedback from showings prevents sellers from making adjustments that could generate offers. Working with an experienced Houston real estate professional who provides honest guidance based on current market data is essential.
Investor Activity Remains Strong Across Houston
Real estate investors continue viewing Houston as an attractive market for rental property acquisitions. Rental demand remains solid, supported by job growth, population in migration, and relative affordability compared to other major metros.
Single family rentals offer reliable cash flow even as appreciation moderates. Investors focused on workforce housing and build to rent properties find opportunities in suburban markets where new construction provides modern amenities at accessible price points.
Homeowners considering selling to investors should understand that investors typically expect below market pricing in exchange for quick closings and as is condition purchases.
Spring 2026 Outlook for the Houston Housing Market
Industry observers expect spring 2026 to bring increased inventory as more sellers who postponed listings decide to enter the market. Pent up demand from both buyers and sellers could create heightened activity during the traditional peak season.
Mortgage rates are projected to remain in the low to mid six percent range through the first half of 2026, with potential for further modest declines depending on economic conditions. Buyers who have been waiting for rates to drop below six percent may gain confidence and enter the market.
Houston home prices are forecast to appreciate modestly, with most projections calling for growth between two and four percent for the full year. This measured appreciation reflects a market based on sustainable fundamentals rather than speculative momentum.
For sellers considering listing this year, the outlook is clear. The Houston real estate market is active, balanced, and ready for well prepared sellers who price competitively and present their homes professionally.
Ready to take the next step? Search Houston homes, explore neighborhood trends, register for listing alerts, or connect directly with Michael Gee to discuss your selling timeline and strategy.
