The Houston real estate market continued its growth trend in August, marking the fourth consecutive month of increased sales activity. According to a new report from the Houston Association of Realtors (HAR), single-family home sales saw a significant year-over-year jump, while a substantial rise in available inventory helped keep prices stable for buyers.
Key Takeaways
- Single-family home sales in Houston increased by 11.9% in August 2025 compared to the previous year.
- The median price for a single-family home remained unchanged at $335,000, indicating market stability.
- Housing inventory expanded to a 5.4-month supply, the highest level for August since 2011.
- The townhome and condominium market experienced a downturn, with sales falling 13.5% and prices declining.
Single-Family Home Sales Show Robust Growth
Data for August 2025 reveals a strong performance in the single-family home sector across the greater Houston area. Realtors closed on 8,138 homes during the month, an 11.9% increase from the 7,270 homes sold in August 2024. This marks the most significant year-over-year sales gain recorded in 2025.
The total dollar volume for all property sales, including single-family homes, townhomes, and condos, grew by 10.9% to reach more than $3.8 billion. Overall property transactions rose by 9.2%, totaling 9,440 for the month. This sustained momentum suggests consistent buyer interest in the market.
Forward-Looking Indicators Remain Positive
Pending sales, which are contracts signed but not yet closed, also showed positive signs. These sales, which typically close within 30 to 60 days, were up 10.1% compared to last year, suggesting that the sales momentum could continue into the fall season.
Inventory Surge Creates Favorable Conditions for Buyers
A key factor influencing the Houston market is the substantial increase in the number of homes for sale. Active listings for single-family homes soared to 39,374, a 30.4% increase from the previous year. This surge has expanded the housing supply significantly.
The months of inventory, a measure of how long it would take to sell all available homes at the current sales pace, grew from 4.4 months to 5.4 months. According to HAR, this is the highest inventory level for the month of August since 2011, when it was 7.1 months.
Houston vs. National Supply
Houston's 5.4-month supply of single-family homes is currently higher than the national average. The National Association of Realtors recently reported a 4.6-month supply for the United States, positioning Houston as a market with more options for prospective buyers.
Shae Cottar, HAR Chair with LPT Realty, commented on the market dynamics.
“August brought the strongest sales gains we’ve seen so far this year, and that’s encouraging for both sides of the market. Buyers have more choices and negotiating power than they’ve had in more than a decade while sellers continue to benefit from solid demand.”
Cottar also noted the potential impact of easing mortgage rates, stating, “As mortgage rates continue to ease, I anticipate buyer activity will remain solid in the coming months.”
Home Prices Hold Steady
Despite the strong sales figures, the increased inventory has prevented significant price inflation. The median price for a single-family home in August was $335,000, which is statistically unchanged from the same time last year. The average price was also flat at $422,703.
This price stability is a direct result of supply and demand balancing out. While more buyers are entering the market, the growing number of available homes has given them more leverage, keeping prices in check. The average price per square foot also saw minimal change, moving from $176 to $177.
Properties are also spending slightly more time on the market. The average Days on Market (DOM) increased from 47 days in August 2024 to 52 days in August 2025, giving buyers more time to consider their options before making a decision.
Townhome and Condominium Market Faces Headwinds
In contrast to the single-family sector, the market for townhomes and condominiums experienced a notable slowdown in August. Sales in this segment declined by 13.5% year-over-year, with 404 units sold compared to 467 last August.
Prices also saw a significant decrease. The median price for a townhome or condo fell 7.1% to $210,000, while the average price dropped 4.4% to $248,799. This indicates weaker demand in this specific housing category.
Inventory for townhomes and condos has reached an extraordinary high. The supply expanded to 8.2 months, a level not seen since August 2011. This oversupply is putting downward pressure on prices and creating a challenging environment for sellers in this segment.
Sales Performance by Price Range
The HAR report provided a detailed breakdown of sales performance across various price points for single-family homes, showing growth in every category:
- $1 - $99,999: Sales increased by 20.7%
- $100,000 - $149,999: Sales increased by 12.7%
- $150,000 - $249,999: Sales increased by 21.2%
- $250,000 - $499,999: Sales increased by 6.4%
- $500,000 - $999,999: Sales increased by 14.8%
- $1M and above: Sales increased by 12.9%
The data shows particularly strong growth in the more affordable and mid-range price brackets, as well as the luxury market. The segment between $150,000 and $249,999 saw the most significant percentage increase in sales.
Sales of existing single-family homes, excluding new construction, also performed well, rising 9.7% compared to last year. The average price for these homes climbed 2.5% to $437,981, with the median price increasing 1.8% to $340,000.
