Blog

Houston Housing Market Blooms with Stability in March

You are currently viewing Houston Housing Market Blooms with Stability in March

Sales rise as inventory stabilizes and prices moderate.

As the spring housing market begins to bloom, the Greater Houston area is showing signs of balance and stability despite ongoing economic uncertainty.

According to the Houston Association of Realtors’ March 2026 Housing Market Update, single-family home sales rose 3.7% year over year, with 7,644 homes sold compared to 7,369 last year. Pending sales were up 12.8%, a sign of continued buyer demand as the spring homebuying season gets underway.

Home prices eased slightly in March. The average home price declined 1.2% to $420,510, while the median price edged down 1.5% to $330,000. At the same time, homes spent a little more time on the market, with Days on Market increasing to 67 days compared to 62 days a year ago.

Most housing segments posted year-over-year gains in March. However, after several months of strong performance, the luxury segment saw a 4.5% decline in sales.

“The market is in a really steady place right now,” said HAR Chair Theresa Hill with Compass RE Texas, LLC – Houston. “Buyers are still active, prices are moderating and inventory is leveling out. Interest rates will be something to watch, but the market is on solid footing this spring.”

“Global uncertainty, particularly related to the war in Iran, is creating more volatility in interest rates,” said HAR Chief Economist Dr. Ted C. Jones. “Although mortgage rates have advanced slightly as inflation concerns grow, affordability in March improved compared to a year ago as the typical principal and interest payment on the median priced-home (assuming 20 percent down) was almost $106 less. On a year-over-year basis, affordability has now improved in 17 of the past 20 months, which is great news for homebuyers.”

Housing Market Overview

Sales of all property types across the Greater Houston area rose 3.6% year over year in March, with 9,001 properties sold. Total dollar volume exceeded $3.6 billion, up 1.9% from a year earlier. The number of active listings of all properties increased 8.8%, with 55,611 available properties.

Single-Family Homes Update

Single-family home sales posted their first year-over-year increase of 2026, rising 3.7% with 7,644 homes sold in March versus 7,369 a year earlier. In the 12-months ending March 2026, Houston single-family home sales were up 2.0% compared to 2019, the last normal year prior to the pandemic, which indicates the Houston housing market is back to normal. In comparison, U.S. existing home sales were down 24.2% in the 12-months ending February 2026 versus all of 2019.

The median price declined 1.5% to $330,000, while the average price eased 1.2% to $420,510. The average price per square foot decreased to $174 from $179 last March.

Inventory continued to expand, with active listings up 8.7% to 34,898 homes. Months of inventory grew to 4.7, compared to 4.5 a year ago. Although inventory levels remain elevated, growth has flattened in recent months, signaling a more balanced market. Nationally, inventory stands at 3.8 months, according to the National Association of Realtors. 

Broken out by housing segments, single-family home sales performed as follows:

  • $1 – $99,999: increased 28.4% (95 transactions)
  • $100,000 – $149,999: increased 5.7% (184 transactions)
  • $150,000 – $249,999: increased 11.6% (1,446 transactions)
  • $250,000 – $499,999: decreased 0.9% (4,335 transactions)
  • $500,000 – $999,999: increased 0.7% (1,263 transactions)
  • $1M and above: decreased 4.5% (320 transactions)

HAR also reports on existing single-family home sales, which increased 9.4% year over year in March, with 5,269 closings. The average price declined 2.1% to $429,601, while the median price edged down 1.2% to $330,000. 

HAR will publish its March 2026 Rental Market Update on Wednesday, April 15.

For HAR’s Monthly Activity Snapshot (MAS) of the March 2026 trends, please CLICK HERE to access a downloadable PDF file. 

Townhome/Condominium Update

The townhome and condominium market also recorded its first sales gain of the year in March. Transactions increased by 1.8%, with 402 units sold versus 395 a year earlier. The median price slid 4.3% to $220,000, while the average price eased 1.6% to $267,956. Inventory expanded from a 6.8-months supply to 8.2 months in March.

Houston Real Estate Highlights in March

  • Single-family home sales increased 3.7% year over year.
  • Days on Market (DOM) for single-family homes went from 62 to 67 days.
  • The single-family median price declined 1.5% to $330,000.
  • The single-family average price was down 1.2% to $420,510.
  • Single-family home months of inventory expanded to a 4.7-months supply, up from 4.5 months a year ago.
  • Townhome and condominium sales edged up by 1.8% with 402 units sold. The median price declined 4.3% to $220,000, and the average price was down 1.6% to $267,956.
  • Total property sales rose 3.6% with 9,001 units sold.
  • Total dollar volume increased 1.9% to $3.6 billion.