Despite ongoing economic uncertainty, the Houston housing market showed renewed momentum in March. Sales rebounded to their highest level since last summer, boosted by easing interest rates, moderating prices, and a growing supply of homes. As buyer activity increases, signs continue to point toward a more balanced—and in some areas, buyer-friendly—market.

Chart and Infographic of the Houston real estate market for March 2025. Providing statistics such as home prices, inventory levels, and days on market. Brought to you by one of the top real estate firms in Houston, Norhill Realty.

Key Highlights from the Houston Association of Realtors (HAR) March 2025 Market Update:

Home Prices: The median home price rose 1.5% to $335,000 year over year. The average home price increased 3.7% to $427,221. Price gains was primarily driven by strength in the luxury market, which remains very active.

12-month graph ending March 2025, showing average and median Houston home prices. Year-over-year homes prices are up in Houston. Provided by a top Houston Realtor, Norhill Realty.

Likely to Sale: According to HAR, total active listings, or the total number of available properties, increased 29.3 percent to 51,997. March sales of all property types totaled 8,753 were relatively flat at-.09%. However, total single family homes sales performed much better, rising 2.6% in March.

As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for March 2024 was 17 percent. This is down from the absorption levels we saw in 2024, however slightly up from January and February of this year.

This is a graph of the Absorption Rate, number of homes that sold relative to how many were active on the market, in Houston Texas in March 2025. This graph is brought to you by Norhill Realty, a top Realtor in Houston.

Market Segments: The luxury market ($1 million+) led all segments in March, with a 26.9% increase in sales compared to the same time last year. In contrast, homes priced under $100,000—which make up just 1% of the market—saw a 14.0% decline in transactions. All other price ranges recorded year-over-year sales growth.

Inventory: Months of inventory increased to 4.6 months, up from 3.4 months in March 2024—a 12-year high. Housing inventory nationally stands at a 3.5-months supply, according to the latest report from the National Association of Realtors (NAR). A 4.0- to 6.0-months supply is generally considered a “balanced market” in which neither buyer nor seller has an advantage. The Houston market has moved much closer to a buyer’s market in several neighborhoods around town.

Graph showing listing inventory levels in Houston, Texas over the past 10 years ending in March 2025. Current inventory levels are much more balanced between buyers and sellers. This graph comes courtesy of Norhill Realty, one Houston top rated real estate brokerages.

Days on Market:

Days on Market (DOM) rose from 55 to 62 days, reflecting a more measured pace of buyer activity.

Graph of the average number of days it takes for a home to sell in March 2025 and the previous 12 months. Days on market are slightly up year over year. This graph is brought to you by one of the top real estate Brokerages in Houston, Norhill Realty.

Existing Home Sales:

  • Existing single-family home sales rose 0.7% to 4,940 units.
  • The average price increased 6.1% to $440,329, and the median price rose 3.6% to $335,000.

Townhouse/Condominium Trends:

Townhome and condo sales continued to lag behind 2024’s pace for the second month in a row.

  • Sales declined 21.9%, with 397 units sold vs. 508 a year ago.
  • Average price: ⬇ 1.5% to $272,144
  • Median price: ⬇ 4.0% to $225,500
  • Inventory surged to 6.9 months, the highest level since November 2011.

Looking Ahead

The Houston real estate market is heading into the spring season with strong fundamentals in place. Inventory is rising, providing buyers with more options and negotiating power—especially in a market that has been tight for several years. Demand remains strong in both the luxury and mid-range price points, creating a healthier, more balanced environment for both buyers and sellers.

While recent tariff news has introduced some uncertainty in national markets, Houston’s economy continues to outperform many other metros, thanks to its diverse industries and steady job growth. For buyers, this means entering a market with strong long-term potential.

Even with inventory on the rise, home prices—particularly in the $750,000+ segment—are expected to continue climbing. For motivated buyers, now may be a good time to lock in a purchase before prices push higher later in the year.

For sellers, the right timing to list your home will depend on your specific neighborhood. Many areas across Houston, especially those near town neighborhoods, are still seeing homes sell quickly and at prices above 2024 levels.

If you’re considering selling—or just want a clearer picture of your home’s current market value—or if you’re ready to begin your home search, click here to connect with a local agent who can guide you through the process.

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