The Houston real estate market demonstrated continued signs of stabilization in July, according to the latest market update from the Houston Association of REALTORS® (HAR).

While single-family home sales fell for the 16th consecutive month in July, the decline was only 8.5% — the lowest recorded in over a year. The last time sales fell by a smaller margin was in June 2022, when sales were down 7.6% year over year.

“Each passing month has moved the Houston housing market closer to what we consider normal, with seasonal influences,” said HAR Chair Cathy Treviño. “But consumers are still understandably taking a cautious approach to the homebuying process, and many are ultimately choosing to rent.”

HAR reports that pricing stabilized in Houston as well. The average single-family home price rose 0.6% to $428,140 in July, while the median dropped 2.3% to $340,000. That’s well below the all-time highs of $438,250 in May 2022 and $354,000 in June 2022, respectively.

Months of inventory increased to a 3.2-month supply in July, the highest level since May 2020 and slightly higher than the national average. A year ago, Houston’s supply was significantly lower with just 2.4 months of inventory.