The Greater Houston housing market update for September 2026 shows a market with fewer sales, plenty of available inventory, and pricing that remains relatively steady despite slower activity.
Looking at August 2026 compared with August 2025, single-family home sales declined 11.5%, while pending sales were down 3.5%. Homes are taking roughly the same amount of time to sell, and buyers currently have considerably more inventory to choose from.
For sellers, that means more competition. For buyers, the combination of increased selection and slower sales can create opportunities to negotiate, particularly when considering new construction.
Greater Houston Home Sales Declined 11.5%
Single-family home sales across Greater Houston decreased 11.5% year over year in August.
That means considerably fewer single-family homes changed hands compared with the same month a year earlier.
Pending sales also declined by 3.5%. Since pending sales represent homes that have gone under contract but have not yet closed, this suggests fewer new contracts were being written compared with August of the previous year.
Total property sales, which include multiple property types rather than only single-family homes, declined 10.2%.
Taken together, these numbers show a Houston market where transaction activity has slowed even though a substantial amount of inventory remains available.
Days on Market Remained Relatively Stable
Despite the decline in sales activity, days on market did not change dramatically.
Homes were taking approximately 52 to 54 days to sell.
That relatively small change suggests that while fewer transactions are happening overall, market time has not experienced the same degree of year-over-year movement as sales volume.
For sellers, however, the amount of competing inventory remains important. A property entering the market is competing with many other homes for the attention of a smaller pool of active buyers.
That makes pricing, condition, presentation, and overall value increasingly important when preparing a home for sale.
Houston Median Home Price Fell Slightly
The single-family median home price declined approximately 1.5%, landing around $330,000.
One factor affecting the median is the amount of new construction entering the Houston market.
Builders frequently list homes as they approach later stages of construction and completion. Many are also placing significant emphasis on affordability by building homes with smaller footprints and targeting price points that allow more buyers to enter the market.
That additional supply of lower-priced new construction can influence the overall median price.
The slight decline in the median does not necessarily mean every Houston neighborhood or property type experienced the same pricing movement. It reflects the overall mix of homes sold across the market.
Average Houston Home Price Increased to About $426,000
While the median price moved lower, the average single-family home price increased approximately 1.2% year over year to around $426,000.
The difference between the median and average is worth noting.
The median represents the midpoint of the homes sold, while the average can be influenced more heavily by higher-priced transactions.
According to the market commentary, higher costs associated with materials, labor, inflation, and resale pricing continue to play a role in housing prices.
So while fewer properties are selling, homes overall are still transacting at prices that are relatively close to, or slightly above, the previous year’s levels depending on the metric being examined.
Houston Has a Large Amount of Inventory
One of the biggest themes in the current market is inventory.
The transcript notes that Houston had more than 40,000 listings during August, creating a highly competitive environment for homeowners considering selling.
Single-family home inventory remained around a 5.3-month supply.
That level of supply gives buyers substantially more choice than they would have in a market where inventory is severely limited.
For sellers, the opposite is true. More listings mean more competition.
Simply putting a home on the market is not enough when buyers can compare it with many other available properties. Sellers need to understand how their home compares with competing listings on price, condition, location, and overall presentation.
Buyers May Have More Negotiating Opportunities
Higher mortgage rates remain one of the biggest challenges for buyers.
However, increased inventory changes the other side of the equation.
With more homes available and sales activity slowing, buyers may have greater opportunities to negotiate than they would in a highly competitive, low-inventory market.
Builders can be particularly worth evaluating.
New-home builders with properties approaching completion may have reasons to encourage buyers to move forward, creating opportunities to negotiate on price or other terms depending on the property and builder.
Buyers should evaluate the complete transaction rather than concentrating exclusively on the asking price.
Total Houston Property Sales and Dollar Volume Declined
Total property sales across the Houston market declined approximately 10.2% year over year.
Total dollar volume also decreased, falling approximately 8.8%.
The difference between those two figures reinforces the broader pricing trend.
Fewer transactions are taking place, but the average value of the properties being sold has not fallen at the same rate as the number of sales.
In other words, transaction volume has weakened more noticeably than overall pricing.
Mortgage Rates Remain a Major Factor
Mortgage rates continue to influence buyer affordability.
At the time the market update was recorded, the average 30-year mortgage rate had moved slightly above 7%.
Higher borrowing costs can significantly affect monthly payments, especially for buyers financing a large portion of their purchase.
The market commentary connects continued pressure on interest rates with inflation and volatility in global energy markets. Energy costs affect transportation and the movement of goods, which can contribute to broader inflationary pressures.
Regardless of the causes, buyers need to account for current borrowing costs when deciding how much house they can comfortably afford.
Should Buyers Wait for Rates to Fall?
Waiting for lower mortgage rates is one strategy, but it is not the only consideration.
A market with substantial inventory may provide buyers with negotiating opportunities that could become less common if financing conditions improve and more buyers return to the market.
The approach presented in the transcript is to consider purchasing when the right property and price are available, then potentially refinance later if mortgage rates eventually decline.
Refinancing is not guaranteed, however. Future rates, lending requirements, home values, financial circumstances, and refinancing costs can all affect whether that strategy becomes practical.
Buyers should therefore make sure the initial purchase works financially based on the terms available today.
What the September 2026 Houston Housing Market Means for Sellers
Sellers are entering a market with a large amount of competing inventory.
That does not mean homes cannot sell. It means homeowners need to be realistic about the environment in which they are listing.
Pricing significantly above comparable homes can become especially challenging when buyers have many alternatives.
Homes that are well prepared and positioned appropriately for current market conditions have a better chance of attracting attention than properties relying on the conditions of previous years.
Sellers should look carefully at recent comparable sales, competing active listings, days on market, property condition, and buyer activity within their specific neighborhood.
What the Market Means for Houston Buyers
For buyers, increased inventory provides something valuable: choice.
A slower sales environment can allow more time to compare properties and evaluate available options.
The current combination of higher inventory and reduced sales activity may also create opportunities to negotiate with individual sellers and home builders.
Mortgage rates remain a meaningful affordability challenge, so buyers still need to evaluate monthly payments carefully.
But focusing only on interest rates can overlook other aspects of the transaction, including purchase price, available inventory, property condition, and negotiating position.
Greater Houston Housing Market Update: The Bottom Line
The Greater Houston housing market update for September 2026 reflects a market with fewer transactions but significant inventory and relatively modest changes in home prices.
Single-family sales were down 11.5% year over year, pending sales declined 3.5%, and total property sales fell 10.2%. The median single-family price slipped about 1.5% to approximately $330,000, while the average price increased 1.2% to roughly $426,000.
Single-family inventory remained around a 5.3-month supply, giving buyers more properties to consider while increasing competition among sellers.
Mortgage rates remain one of the biggest obstacles for buyers, but available inventory and potential negotiating opportunities can create a different kind of advantage.
Whether buying or selling, the key is evaluating current conditions rather than relying on assumptions based on previous years. Houston remains an active market, but buyers and sellers need strategies that reflect today’s inventory, pricing, financing costs, and competition.
