What’s actually happening in the Houston Housing Market? – June2025

Here’s a quick recap of the Houston area housing market. I’ve also included a view of historical mortgage rates since it’s relevant and helps us with perspective. 

The data shows we are almost to a buyer’s advantage housing market now and that’s good news (finally) for everyone who’s been waiting for a “better market”.   

Take a sec to absorb the info and reach out to me for more – maybe a focused study of an area most relevant to you (your neighborhood?), a plan to buy a home or an investment property, or clarity on what a real buyer might pay for a given property in today’s market.

Mortgages

Mortgage rates lately are quoted between 6 and 7%.  We’ve been in this range since Sep2022.  After peaking in 1981 at 18.63%, we’ve enjoyed a fairly steady though choppy decline in this rate until it bottomed out in Jan2021 at 2.65%.  From there, we saw an abrupt rise reaching over 7%.   It’s been a nice long run of low rates but those extremely low rates are likely gone for good. From a risk point of view, such a low rate, below 4%, is not sustainable.

Lately some lenders are showcasing new loan products to help us finance our deals.  Reach out to your favorite lender to see if they have better loan terms for you now.  Need a lender recommendation?  Ask me today and I’ll send you the top 3 in my network.

Housing

In the Greater Houston Area, there are now more active listings than we’ve seen since before 2015.  At the end of May2025, there were 34,127 active listings, an increase of over 36% from this time last year.  New construction accounted for 9,296 of these listings.  And total home sales increased to 8,555 closed deals, up 6.7% from last year.  That’s a decent increase in real buyers.

Check out this tool to compare cost of living in Houston versus some other place in the US

Coldwell Banker Realty – Move Meter

Summary

The housing market has a lot of moving parts.  And despite the high prices, news of slower housing sales, and high rates, a lot of people decided they can’t wait any longer and feel now is the time to move.  We see this trend in the numbers.  More listings.  More closings.  Who do you know that’s been thinking of moving or investing this year (is it you)?  Now may be the time to take a serious look at that plan.

Call me today to set up a consultation and let’s get to work.  

This is published on June 27, 2025

• housing market data and trends as of May 31, 2025
• mortgage information is weekly data from April 2, 1971 to June 18, 2025 – c/o the Federal Reserve Bank of St. Louis