Houston Real Estate Market Update

Houston Real Estate Market Update – February 2025

The Houston housing market continues to demonstrate resilience and growth as we progress through February 2025. Whether you're considering buying, selling, or investing, staying informed is essential. Here's your detailed market breakdown, including month-over-month comparisons:

1. Home Prices: Month-Over-Month Comparison

• Median Home Price: In January 2025, the median home price in Houston reached $325,000, marking a modest increase from the previous month.

  Preliminary data for February indicates a continued upward trend, with an estimated 1.5% increase, bringing the median price to approximately $329,875.

Pro Tip: Sellers may find this an opportune time to list their properties, as rising prices can attract motivated buyers. Buyers should act swiftly to secure homes before prices climb further.

2. Inventory Levels: Assessing Supply

• Months of Inventory: As of January 2025, Houston's housing market had a balanced 4-month inventory supply.

  February's data suggests a slight tightening, with inventory levels decreasing to 3.8 months, indicating increased demand.

Pro Tip: Buyers may face increased competition with decreasing inventory, so acting quickly on desirable properties is advisable. Sellers can benefit from the reduced supply by positioning their homes attractively.

3. Mortgage Rates: Current Landscape

• As of February 24, 2025: Mortgage rates have remained relatively stable compared to January 2025, with the average rate for a 30-year fixed mortgage hovering around 6.9%.

Pro Tip: With stable mortgage rates, buyers have a window of predictability for financing. Consider locking in current rates to safeguard against potential future increases.

4. Days on Market: Speed of Sales

• Average Days on Market: In January 2025, homes in Houston spent an average of 58 days on the market before being sold.

  Preliminary February data suggests a slight decrease to 55 days, reflecting sustained buyer activity.

Pro Tip: Sellers can potentially expedite sales by enhancing property appeal through effective staging and competitive pricing. Buyers should be prepared to make timely decisions in a market where desirable homes move quickly.

5. Hot Neighborhoods to Watch

• River Oaks: Known for its luxury properties, River Oaks continues to attract high-end buyers. Recent sales include homes featuring gold wine rooms and expansive garages.

• The Heights: This area remains popular due to its blend of historic charm and modern amenities. Home prices have seen steady appreciation, making it a desirable location for both buyers and investors.

• Cypress: With suburban growth on the rise, Cypress offers larger homes and excellent schools, appealing to families seeking more space.

Pro Tip: Investors should monitor these areas for opportunities, considering both current trends and future growth prospects.

Final Takeaway: What This Means for You

• Sellers: With rising home prices and decreasing inventory, the current market conditions are favorable for listing your property. Enhancing your home's appeal can attract competitive offers.

• Buyers: Stable mortgage rates and a slightly tightening inventory suggest acting decisively when desirable properties become available. Being pre-approved for a mortgage can strengthen your position in a competitive market.

• Investors: Emerging trends in specific neighborhoods offer promising prospects; thorough research and timely action are key to capitalizing on these opportunities.

Staying abreast of market trends empowers you to make informed real estate decisions. Whether you're buying, selling, or investing, the current Houston market presents a wealth of opportunities.