New-home sales increased 9% month over month in Houston in December, according to the Texas New Home Sales Report from HomesUSA.

While new-home sales increased on a monthly basis in all of Texas’ four major metro areas, Houston had the highest sales volume at 2,157. Dallas-Fort Worth followed at 1,967.

Pending sales declined for the fifth consecutive month, however, with 1,532 new homes going under contract.

“December’s numbers suggest seasonal market improvement for Houston builders, but the pending sales numbers that indicate future sales are worrisome,” said HomesUSA CEO Ben Caballero. “Days on market elevated, signaling many buyers remain cautious, even when builders buydown buyer mortgage rates. What happens with mortgage rates early in the new year will be crucial to drive new-home sales higher throughout the Houston area.”

The average new-home price was statistically flat at $400,111, down slightly from $401,678 in December 2024.

Meanwhile, active inventory increased annually but decreased month over month: New-home inventory stood at 16,244 properties in December, down from 16,685 in November but up from 13,103 a year prior.