In this Greater Houston housing market update, I’m seeing a market with record-high inventory, softer sales activity, relatively stable home prices, and more negotiating opportunities for buyers.
Looking at September 2026 compared with September 2025, single-family home sales declined 5.7%. Pending sales fell even more sharply, while active inventory continued to climb.
For buyers, I think that creates some of the best negotiating conditions we have seen in a while. For sellers, it means pricing and timing deserve extra attention before putting a home on the market.
Single-Family Home Sales Declined 5.7%
Single-family home sales across Greater Houston were down 5.7% year over year.
In other words, nearly 6% fewer single-family homes sold in September 2026 than during September 2025.
That slowdown is noticeable, but I think the pending-sales figure tells an even more important story about where activity may be heading.
Pending sales declined 11.6%.
Because pending transactions represent homes that have gone under contract but have not yet closed, that figure suggests fewer buyers were committing to purchases during the period.
Houston Active Listings Reached 40,192 Homes
One of the biggest numbers I’m watching is inventory.
Active listings increased 6.3% to 40,192 homes on the MLS.
That represented an all-time record based on the market data I reviewed.
For buyers, more than 40,000 active listings means considerably more choice.
You can compare properties, evaluate different neighborhoods, and potentially negotiate with sellers who are competing against a much larger number of available homes.
For sellers, the same number creates a challenge.
Your property cannot simply be listed and expected to stand out automatically. Buyers have options, so the asking price, condition, presentation, and overall value need to make sense compared with competing homes.
Average Home Price Increased Slightly
Even though sales declined, the average single-family home price increased approximately 0.7%.
That is a relatively small year-over-year change.
I view that as another sign that we are seeing softer transaction activity rather than a dramatic collapse in home values.
Fewer homes are selling, but the properties that are closing are still supporting relatively steady pricing overall.
Individual neighborhoods and price ranges can behave very differently, so I would never use a metro-wide average to determine what one specific Houston property is worth.
Median Houston Home Price Stayed Around $325,000
The single-family median home price remained essentially unchanged at approximately $325,000.
I continue to believe new construction is one factor affecting that number.
Builders have been producing more attainable homes farther outside the urban core, which adds lower-priced inventory to the overall Houston sales mix.
That can influence the median even while prices in individual neighborhoods or higher-end segments behave differently.
For homeowners, the important takeaway is that a $325,000 metro median does not tell you what your house is worth.
I would always look at recent comparable sales, active competition, condition, location, and buyer activity within the immediate area.
Total Property Sales Fell 6.4%
Across all property types, total sales declined approximately 6.4%.
That brought total transactions to about 8,181.
Total dollar volume declined approximately 2.1%.
The fact that dollar volume fell less than the number of transactions is consistent with the relatively stable pricing environment.
We are seeing fewer transactions, but the overall value of the homes changing hands has not declined at the same rate.
Days on Market Are Moving Higher
I’m also seeing homes take a little longer to sell.
That makes sense when inventory is rising and buyers have more properties available to compare.
When fewer listings are competing for attention, buyers may feel pressure to make quick decisions.
With more than 40,000 active listings, they can afford to be more selective.
For sellers, that means the first few weeks on the market matter.
If a home starts significantly above what buyers consider reasonable, it may sit while competing properties receive the offers.
Higher Mortgage Rates Remain a Challenge
Mortgage rates remain relatively high, and that continues to affect affordability.
Higher borrowing costs increase monthly payments even when the purchase price stays the same.
That can limit what some buyers are able or willing to spend.
I’m watching the broader economic environment closely, including energy prices and other factors that can affect inflation and borrowing costs.
I would not base a purchase or sale solely on the assumption that rates will fall soon, because future financing conditions cannot be guaranteed.
Instead, I think buyers and sellers should make decisions based on the numbers available to them today.
Why Buyers Have More Negotiating Power
Right now, I’m seeing buyers get some very good deals.
The biggest reason is simple: inventory is high.
When sellers are competing against thousands of other listings and buyer activity is slower, purchasers can have more room to negotiate.
Depending on the property and seller, that may create opportunities involving:
- Purchase price
- Seller concessions
- Closing costs
- Repairs
- Financing incentives
- Closing timeline
- Other contract terms
Not every home will come with significant negotiating room.
A well-priced property in a desirable location can still attract strong interest.
But overall, I believe buyers currently have more leverage than they did when inventory was much tighter.
Why I Would Consider Buying Now
If I were actively looking for a Houston home and found the right property at the right price, I would take the current market seriously.
Waiting for mortgage rates to decline could result in lower borrowing costs, but it could also bring more buyers back into the market.
More competition can reduce negotiating power.
Right now, buyers have the benefit of unusually high inventory and softer demand.
That combination can create opportunities to negotiate a purchase that may not be available in a more competitive market.
The important part is making sure the payment and purchase make financial sense under today’s terms rather than depending on a future refinance.
Why Some Sellers May Want to Wait
If I were a seller who did not need to move immediately, I would think carefully about timing.
With record inventory, fewer sales, falling pending contracts, and longer market times, sellers are facing more competition.
If your timeline is flexible, waiting several weeks or months may be worth considering.
That does not mean every seller should postpone a move.
Some properties are still selling, and personal circumstances often matter more than broader market conditions.
If you need to sell now, I would focus heavily on realistic pricing and positioning the home correctly from the beginning.
Sellers Need to Compete With the Market They Have
I would not price a Houston home based on what a neighbor received during a completely different market.
Today’s buyer has more choices.
Before listing, I would look closely at:
- Recent comparable sales
- Current competing listings
- Pending homes
- Days on market
- Price reductions
- Property condition
- New construction competition
- Buyer activity in the immediate area
The goal is to enter the market at a price buyers can justify.
Overpricing in a high-inventory market can make a property easier to overlook.
Greater Houston Housing Market Update: My Takeaway
My biggest takeaway from this Greater Houston housing market update is that buyers currently have an advantage that comes from abundant inventory.
Single-family sales declined 5.7%, pending sales fell 11.6%, and active listings increased 6.3% to a record 40,192 homes.
At the same time, prices remained relatively stable. The average single-family price increased approximately 0.7%, while the median stayed around $325,000.
Total property sales declined 6.4% to approximately 8,181 transactions, and total dollar volume fell about 2.1%.
For buyers, I see an opportunity to negotiate while inventory is high and competition is softer.
For sellers, I think timing, pricing, and presentation matter more than ever.
Every neighborhood and property is different, so I recommend looking beyond the metro statistics and evaluating the specific numbers surrounding the home you want to buy or sell.
- Single-family home sales decreased 5.7% year over year.
- Pending sales declined 11.6% to 6,789.
- Active listings increased 6.3% to 40,192 homes.
- Days on Market for single-family homes increased from 56 to 58 days.
- The single-family average price increased 0.7% to $421,311.
- The single-family median price remained essentially unchanged at $325,000.
- Inventory expanded from 5.1 months to 5.5 months.
- Total property sales declined 6.4% with 8,181 transactions.
- Total dollar volume decreased 2.1% to $3.45 billion.
