Houston’s housing market saw a significant increase in inventory as it entered the fall season, with nearly 39,000 active single-family listings reported in September by the Houston Association of Realtors (HAR). This represents a 26 percent year-over-year jump. New listings also rose 13 percent to reach 14,618 homes.
In August, Houston approached 40,000 single-family listings. When townhomes and condos are included, the city set a national record for residential inventory that month with a total of 44,000 homes on the market, according to Homes.com.
While autumn is typically considered a slower period for home sales, September marked the end of several months of declining prices. From March to July, median home prices had been trailing compared to the previous year. The average listing price in August was $443,000—only slightly higher than last year. By September, this average dropped by about $3,000 but still stood at $440,000, which is two percent higher than a year earlier according to HAR.
Sellers across major markets have been lowering prices and offering more discounts compared to recent years. Houston has led this trend; earlier in 2025 it recorded the lowest sale-to-list ratio among large metropolitan areas nationwide. In August alone, nearly one-third of sellers in both Houston and Dallas reduced their asking prices.
Harris County ranked fifth among populous U.S. counties for annual decreases in median home price based on data from ATTOM.
The shift gives buyers more negotiating power throughout the Sun Belt region. After rapid growth fueled by migration and fast-rising home values in states like Texas and Florida, these markets have transitioned quickly into buyer’s markets.
