In February 2025, Houston’s housing market showed signs of balancing, with increased inventory and stabilizing prices offering new opportunities for buyers. Economic factors, including elevated mortgage rates and inflation concerns, have influenced buyer sentiment, contributing to this shift. ​Despite this balancing, the average home price continued to increase thanks in large part to the positive performance of the luxury home market.

Chart and Infographic of the Houston real estate market for February 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) February 2025 Market Update:

Home Prices: The average home price increased by 2.3% to $407,538, and the median price ticked town by 1.2% to $325,000. Median home prices were flat from January to February.

12-month graph ending February 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 26.7 percent to 49,442. February sales of all property types totaled 7,202 down 4.7 percent compared to February 2024.

As a result, the absorption rate, which is a measure of any given home’s likelihood to sell, for February 2024 was 15 percent. This is down slightly from the absorption levels we saw in 2024, but slightly up from January.

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 February 2025. This graph is brought to you by Norhill Realty, a top Realtor in Houston.

Sales Overview: Declined 3.0% year-over-year, with 6,050 units sold compared to 6,234 in February 2024. ​

Market Segments: Homes priced between $150,000 and $249,999 saw the strongest performance with sales up 2.0 percent compared to last year. The luxury segment ($1 million+) followed with a 1.9 percent increase in sales.

Inventory: Inventory expanded to a 4.4-months supply, up from 3.3 months in February 2024, indicating a more balanced market. 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.

Graph showing listing inventory levels in Houston, Texas over the past 10 years ending in February 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:

At 59 days, the days on market ticked down slightly compared to January, but has held pretty steady over the past 3 months.

Graph of the average number of days it takes for a home to sell in February 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.

January Monthly Market Insights:

The Houston housing market exhibited signs of balancing in February, with increased inventory and stabilizing prices providing more options for buyers. While economic factors such as elevated mortgage rates and inflation concerns have tempered buyer enthusiasm, the market’s resilience is evident in the sustained activity across various segments. ​

Single-Family Homes Update:

  • Total Property Sales: Declined 4.7% year-over-year, with 7,202 units sold. ​
  • Total Dollar Volume: Remained steady at $2.8 billion.

Townhouse/Condominium Trends:

  • Sales: Declined 21.9% year-over-year, with 321 units sold compared to 411 in February 2024. ​
  • Average Price: Increased 11.0% to $287,746. ​
  • Median Price: Increased 4.4% to $248,500. ​
  • Inventory: Expanded from a 3.9-months supply last February to 6.2 months, the highest level since June 2012.

Looking Ahead:

As Houston’s housing market continues to balance, buyers may find increased opportunities with expanded inventory and stabilizing prices. However, economic factors such as mortgage rates and inflation will continue to influence market dynamics. Both buyers and sellers are advised to stay informed.​ Specific neighborhoods are performing better than others, so work closely with your Realtor to navigate the evolving landscape. We still anticipate the Spring to be an active market.

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