Houston home sales increased annually for the fifth straight month in September, according to the latest Market Update from the Houston Association of REALTORS®.

Houston home sales, September 2025 (via HAR)

Homebuyers purchased 7,399 single-family homes during the month, a 5% increase over last September, when 7,025 homes sold. Pending-home sales jumped 11.2%, with 7,676 listings going under contract.

Meanwhile, the median home price decreased 2.1% to $327,000, while the average crept up 2% to $421,655. That average boost was due to an increase in luxury sales, HAR said.

The close-to-list price ratio fell to 93% — the lowest ratio since January 2023 — and the price per square foot fell to $175, down from $177 a year prior.

Based on 30-year mortgage rates in September, the average mortgage payment for a median-priced home was $1,628 per month. That was $144 cheaper than May, $180 cheaper than June, $121 cheaper than in July and $82 cheaper than August.

“The past few months have brought lower mortgage rates, and it has helped boost buyer confidence,” HAR Chair Shae Cottar said in a press release. “We are mindful that economic uncertainty and the current government shutdown could impact the market in the weeks ahead — particularly since new National Flood Insurance Program policies cannot be issued right now.”

However, Cottar added that despite pressure from national factors, the market should remain balanced throughout the final months of the year.

Given the rate of sales, Houston inventory reached a 5.2-month supply, up from 4.3 months a year ago. That’s higher than the national inventory of 4.6 months, although both local and national volumes signal a buyer’s market.