Houston’s housing market is beginning to gain momentum as the spring homebuying season approaches. While February saw a slight dip in home sales compared to last year, other indicators—including rising inventory and increasing buyer activity—point to a market preparing for a busy season.
According to HAR’s February 2026 Housing Market Update, the region is experiencing a more balanced market environment, with both buyers and sellers adjusting to changing conditions.
Summary
Active listings rose more than 15% year-over-year, giving buyers more options.
Pending sales jumped 13%, signaling strong interest ahead of the spring season.
The median home price dipped slightly, improving affordability for buyers.
Lower interest rates helped reduce monthly mortgage payments compared to last year.
Sales Dip Slightly, but Buyer Demand Grows
Single-family home sales declined 2.2% year-over-year in February, with 5,918 homes sold compared to 6,050 during the same month last year.
However, the drop in closings doesn’t tell the whole story. Pending sales surged 13%, signaling that many buyers are actively preparing to purchase homes in the coming months.
Falling mortgage rates have played a major role in this renewed activity. Thirty-year mortgage rates have now declined for eight consecutive months, helping improve affordability for buyers.
Home Prices Ease and Affordability Improves
February brought modest changes in home prices:
Median home price: $322,078 (down 0.9% year-over-year)
Average home price: $415,091 (up 2.0%)
Price per square foot: $170, the lowest level since January 2024
Lower mortgage rates combined with moderating prices helped reduce monthly housing costs. Buyers purchasing a median-priced home in February paid about $149 less per month than buyers a year ago—an annual savings of approximately $1,786 assuming a 20% down payment.
Homes also took longer to sell. The average Days on Market rose to 69 days, the highest level since March 2013. While that may seem surprising, it often signals a healthier market where buyers have more time to evaluate options.
More Homes Available Across the Region
Inventory continued to grow across the Houston area.
Active listings: 35,128 homes (up 15.2% year-over-year)
Housing supply: 4.8 months, compared to 4.3 months last year
For comparison, the national housing supply currently sits at 3.7 months, according to the National Association of Realtors.
More inventory means buyers have a wider selection of homes, reducing the intense competition seen in previous years.
Townhome and Condo Market Update
Houston’s townhome and condominium segment experienced softer activity in February.
Sales: 299 units (down 7.4%)
Median price: $240,500 (down 3.4%)
Average price: $276,835 (down 3.5%)
Inventory expanded significantly, reaching an 8.1-month supply, compared to 6.1 months last year.
Final Thoughts
Houston’s housing market is entering the spring season with renewed momentum. While sales dipped slightly in February, rising inventory, improving affordability, and stronger buyer interest point to a more balanced market ahead. With mortgage rates easing and more homes becoming available, buyers and sellers alike may find new opportunities as the spring market unfolds.
2026.03.26
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