Houston Association of REALTORS®
Feb 11, 2026
Steady demand, expanding inventory shape January activity
The Houston housing market kicked off the new year with familiar signs of adjustment, as inventory expanded, homes spent more time on the market and demand remained steady.
According to the Houston Association of Realtors' January 2026 Housing Market Update, single-family home sales declined 1.0 percent from a year earlier, with 4,999 homes sold compared to 5,047 in January 2025, marking the fewest transactions recorded since January 2023. Pending sales rose 8.5 percent year-over-year, signaling continued buyer interest.
Home prices were mixed during January. The median home price edged down to $322,045, its lowest level since January 2024, when it stood at $320,000. The average price rose 2.8 percent to $416,722, driven largely by more activity in the luxury market.
The luxury segment – comprised of homes priced at $1 million and above and representing just 4.2 percent of all homes on the market – was the strongest-performing sector, with transactions up 15.5 percent year-over-year. Activity slowed in the $250,000 to $499,999 price range, which accounted for more than half of all home sales in January.
As inventory expanded, homes averaged 66 days on the market, up from 61 days the previous year. That marked the longest average days on market since February 2020, when homes averaged 68 days.
“Right now, buyers have more choices and a bit more time to make decisions, while sellers are adjusting to a market that’s becoming more balanced,” said HAR Chair Theresa Hill with Compass RE Texas, LLC - Houston. “With rates expected to ease a little this year, buyers who have been waiting on the sidelines may start to feel more confident and enter the market. That should help maintain demand and create additional opportunities for sellers throughout the year.”
Housing Market Overview
Sales of all property types across the Greater Houston area declined 2.2 percent year-over-year in January, with 6,045 properties sold. While there were more transactions of country homes and lots compared to last year, activity slowed across all other property types. Total dollar volume slid 1.6 percent to $2.4 billion.
The number of active listings of all properties was 15.7 percent above the 2025 level, with 54,589 available properties.
Single-Family Homes Update
Demand for single-family homes was relatively consistent in January, with sales 1.0 percent below last year’s level. Buyers purchased 4,999 homes during the month, down from 5,047 a year earlier.
The median price declined 0.9 percent to $322,045, while the average price increased 2.8 percent to $416,722. The average price per square foot slid to $171, the lowest level since January 2024, when it stood at $169.
Good news was continued improvement in affordability due to year-over-year dips in mortgage rates and median prices. The monthly mortgage principal and interest payment in January 2026 was $1,561.26, assuming a 20 percent down payment on a median-priced home based on monthly interest rates as reported by Freddie Mac. In comparison, the January 2025 payment was $1,722.81. As a result, homebuyers of a median priced-home in January 2026 paid $161.55 less monthly or almost $2,000 ($1,938.56) on an annualized basis. Houston housing affordability has improved in 15 of the past 18 months.
Active listings of single-family homes rose 16.6 percent from a year earlier to 34,570 available properties. Housing supply expanded to 4.7 months of inventory, up from 4.2 months in January 2025. The National Association of Realtors reports a national average of 3.3 months.
Broken out by housing segments, single-family home sales performed as follows:
$1 - $99,999: increased 7.1 percent (75 transactions)
$100,000 - $149,999: increased 6.6 percent (129 transactions)
$150,000 - $249,999: increased 4.7 percent (1,029 transactions)
$250,000 - $499,999: decreased 5.1 percent (2,761 transactions)
$500,000 - $999,999: decreased 0.5 percent (795 transactions)
$1M and above: increased 15.5 percent (209 transactions)
HAR also breaks out sales figures for existing single-family homes. In January, sales were flat, with 3,422 closings compared to 3,433 a year ago. The average sales price rose 3.8 percent to $428,152, while the median price was unchanged at $320,000.
HAR will publish its January 2026 Rental Market Update on Wednesday, February 18.
For HAR’s Monthly Activity Snapshot (MAS) of the January 2026 trends, please CLICK HERE to access a downloadable PDF file.
Townhome/Condominium Update
It was a slow start to the new year for the townhome and condominium market. Sales declined 25.9 percent year-over-year, with 269 units sold compared to 363 last January. The average price fell 8.6 percent to $226,343, while the median price declined 11.9 percent to $185,000, the lowest level since February 2021.
Inventory levels continued to expand, reaching a 7.6-months supply, up from 5.5 months a year earlier.
Houston Real Estate Highlights in January
Single-family home sales declined 1.0% year-over-year.
Days on Market (DOM) for single-family homes went from 61 to 66 days.
The single-family median price declined 0.9% to $322,045.
The single-family average price rose 2.8% to $416,722.
Single-family home months of inventory expanded to a 4.7-months supply, up from 4.2 months a year ago.
Townhome and condominium sales were down 25.9% with 269 units sold. The median price declined 11.9% to $185,000, and the average price was down 8.6% to $226,343.
Total property sales declined 2.2% with 6,045 units sold.
Total dollar volume was down 1.6% to $2.4 billion.