T
he Greater Houston housing market experienced a slowdown in February, with sales moderating as more homes entered the market. Economic conditions, including high mortgage rates and inflation concerns, are influencing buyer sentiment and contributing to this shift towards a more balanced market, according to the Houston Association of Realtors' February 2025 Housing Market Update.

    Single-family home sales across the Greater Houston area declined by 3.0 percent year-over-year, with 6,050 units sold compared to 6,234 last February. This marks the first decline in sales since August 2024. The number of available homes in the Houston area reached its highest level since 2011, with 31,112 active listings in February.

    The median home price declined by 1.2 percent to $325,000, marking the first notable decline since November 2023. However, the average price increased slightly to $407,538 due to continued activity at the high end of the market. The segment of homes priced between $150,000 and $249,999 saw a 2.0 percent increase in sales compared to last year.

    "We are seeing a shift to a more balanced market, which offers more opportunities for those looking to purchase a home," said HAR Chair Shae Cottar with LPT Realty. "The expansion of inventory is providing consumers with a wider selection of homes."

    The rental market saw increased demand in February as hesitant buyers turned to rental housing as an alternative. Total property sales declined by 4.7 percent year-over-year, while total dollar volume was statistically flat at $2.8 billion.

    Active listings rose by 26.7 percent compared to last February, and the average home price rose 2.3 percent year-over-year to $407,538. The median price was down 1.2 percent, which is the biggest decline in 15 months, to $325,000.