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If you’ve been waiting for a headline that doesn’t scream boom or bust, Houston quietly delivered one in 2025.

According to the Houston Association of Realtors, last year marked something the housing market hasn’t seen in a while: normalcy. And in today’s national housing climate, that’s not a downgrade — it’s a strong positive signal.

While many major U.S. metros are still wrestling with volatility, stalled demand, or affordability crunches, Houston did something rare: it returned to balance.

Total property sales in 2025 rose 2.3% year over year, with more than 104,000 homes sold across the region. Single-family sales climbed even faster, up 3.8%, nearly matching the pace Houston saw back in 2019.

That’s an important comparison.

This isn’t demand driven by panic buying, ultra-low rates, or speculative runs. It’s steady, durable activity — the kind that suggests people are buying because life is happening: jobs, relocations, growing families, downsizing.

Even better, total dollar volume increased 4.5% to nearly $43 billion, showing the market isn’t stalling — it’s moving forward at a sustainable speed.

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One of the most important shifts in 2025 was inventory.

Active listings climbed throughout the year and peaked in July at nearly 39,500 homes, pushing months of supply to 5.5 months — the highest since 2012.

For years, “low inventory” was framed as strength. In reality, it created pressure, bidding wars, and burnout. This expansion signals something healthier:

By December, inventory settled at 4.5 months, still above last year and well above the national average of 3.3 months.

That gap matters. It gives Houston room to move without snapping.

Here’s where a lot of people get tripped up.

The median home price was essentially flat in 2025, landing around $335,000. After years of rapid appreciation, that pause isn’t weakness — it’s correction through stability, not shock.

Average prices edged up less than 1% year over year, even hitting a record high mid-year thanks to luxury demand. Translation: the top of the market stayed active, while the middle stopped overheating.

This is what a market looks like when it’s recalibrating, not retreating.

This might be the most underappreciated stat in the entire report.

Affordability improved in 10 out of 12 months compared to 2024. For a typical buyer in December, monthly principal and interest payments were about $88 lower than a year earlier — more than $1,000 saved annually.

That improvement didn’t come from price crashes. It came from:

That combination is rare — and powerful.

No, based on the 2025 data, the Houston housing market does not appear overvalued; prices have stabilized, inventory has normalized, and sales volumes align closely with pre-pandemic levels rather than speculative peaks. In simple terms, the market looks priced for sustainability, not excess, especially compared to national markets still experiencing imbalance.

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Homes took longer to sell in 2025 — about 64 days on average, the longest since early 2020.

That doesn’t signal a slowdown. It signals normal decision-making returning.

Buyers are no longer forced to waive inspections over a weekend. Sellers aren’t expecting instant offers. Negotiation is back. Due diligence is back.

Confidence replaces urgency.

Houston isn’t “back” in a flashy way. It’s back in a structural way.

As HAR’s chief economist put it, Houston is one of the few major markets that’s truly back to normal — and that normal provides a foundation for growth, not whiplash.

In a national housing conversation dominated by extremes, Houston’s 2025 story is quieter — but stronger.

And sometimes the best signal isn’t a spike.

It’s a balance.

Looking for your next home? Contact Blair Realty Today!