Houston has more homes for sale than at almost any point on record, and mortgage rates just climbed to their highest level since 2023. Whether you're thinking about buying, selling or simply staying put, here's what's happening, the simple math behind it, and what to do next.
The short version: HAR counted 38,947 single-family homes for sale across the Houston area in August, even more than June's 38,713, which HAR called a record. Prices are holding fairly steady, with a $330,000 median, down 1.5% from a year ago. Meanwhile, the average 30-year mortgage rate hit 7.28% on Oct. 1, according to Freddie Mac.
Houston's housing inventory is near a record high
In August, HAR reported 38,947 active single-family listings in the Houston area, up 0.5% from a year earlier. That's even more than in June, when HAR said inventory reached the highest level it had ever recorded.
At the same time, fewer homes are selling. Single-family sales fell 11.5% from last August to 7,100 homes, and pending sales were down 3.5%.
What “5.3 months of inventory” means
Months of inventory tells you how long it would take to sell every home on the market at the current pace of sales. Houston was at 5.3 months in August, the same as a year earlier. About 6 months is generally considered a balanced market, where neither buyers nor sellers have a clear edge.
More homes for sale, higher rates: Houston had 38,947 homes for sale, a $330,000 median price and a 7.28% average 30-year rate.
Homes are also taking a little longer to sell: 54 days on average, up from 52 a year ago.
More homes isn't a fire sale
Here's the part that surprises people. Even with more homes for sale, prices haven't dropped much. Houston's median single-family price was $330,000 in August, down 1.5% from a year earlier, while the average price rose 1.2% to $426,760.
HAR Chair Theresa Hill summed it up this way: “Buyers have more options and more time to make decisions, while sellers continue to benefit from relatively stable prices.”
Mortgage rates just hit their highest level since 2023
The average 30-year fixed rate jumped to 7.28% on Oct. 1, up from 7.03% a week earlier and 6.34% a year ago, according to Freddie Mac. That's the highest since November 2023, Fox Business reported.
Here's what that does to the monthly principal and interest on a $300,000, 30-year loan:
- 6.34% (a year ago): about $1,865 a month
- 7.03% (the week before): about $2,002 a month
- 7.28% (Oct. 1): about $2,053 a month
Rule of thumb: Every quarter-point move in rates changes that payment by about $50 a month. Compared with a year ago, it's about $188 more each month. These figures don't include property taxes, insurance or HOA dues.
What it means if you're buying
- You have room to be choosy. More listings and longer market times mean more homes to compare side by side.
- Get pre-approved first. Know your budget at today's rates before you fall for a home.
- Ask your lender how a rate lock works. When rates move quickly, knowing how and when to lock can protect your payment.
What it means if you're selling
- Price it right from day one. Buyers have options and are comparing, so an overpriced home can sit.
- Make it photo-ready. Your listing photos are your first showing.
- Plan for a little more time. With homes averaging 54 days on the market, a realistic timeline helps.
Staying put? Your fall home checklist
- Heat: Swap your HVAC filter and book a heater check before the first cold front.
- Gutters: Clear gutters and drains. Hurricane season runs through Nov. 30.
- Pipes: Find your water shut-off valve and grab faucet covers before the first freeze.
- Alarms: Test smoke and carbon monoxide alarms when clocks fall back on Nov. 1.
Every neighborhood moves differently
Greater Houston numbers don't tell every neighborhood's story. In New Caney and Porter, for example, the median price rose and homes sold faster in both ZIP codes in August, according to Community Impact. More than 74% of homes sold there were priced between $200,000 and $399,999.
Still deciding on timing? Read Should you buy or wait in Houston's 2026 housing market?
Questions about your next move?
Whether you're buying, selling or just curious what this market means for your plans, email me anytime at [email protected] or call 832-924-8150.
This article first appeared in Houston at Home, an email newsletter with local news and a real estate perspective for Greater Houston homeowners. Subscribe here to get the next issue.
This article is for general information only and isn't financial or lending advice. Rates and payments are estimates; talk with a licensed lender about your situation. Ashauna Lindo, Real Estate Advisor, eXp Realty, LLC.
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