Options increased for Houston homebuyers in October as the market pace slowed, according to the latest Housing Market Update from the Houston Association of REALTORS®.
Home sales declined 14.9% year over year, with 6,348 closings during the month. Despite the steep decline in home sales in October, year-to-date sales lagged behind 2025 volumes by just 2%.
The average home price was steady at $421,100, while the median dipped 3% to $320,000 — the lowest price since January 2024, HAR said.
Meanwhile, active listings remained high, with 40,253 properties on the market. That was up 6.8% from a year prior. Given the rate of sales, that gave the Houston area a 5.5-month inventory, unchanged from September but matching the highest level since 2012.
“Consumers are paying close attention to the economy and their household budgets, so it is understandable that some buyers are taking more time before purchasing a home,” said HAR Chair Theresa Hill. “We typically see activity ease as the year winds down, but buyers who are still looking may have more time to find a home that fits their needs and budget.”
Affordability decreased annually: Given the average mortgage rate of 7.33%, October buyers had a monthly mortgage payment of $1,760.28 — $134.79 higher than a year ago.
“Affordability remains a challenge for homebuyers, and the possibility of a quarter-point interest rate increase by the Federal Reserve before the end of the year could add further pressure to the housing market,” said HAR Chief Economist Ted Jones.
Existing-home sales
Among only existing single-family homes (excluding new construction), closings fell 10.2%. The average price decreased marginally to $428,790, and the median fell 4.5% to $315,000.
Townhome and condominium sales
Looking at for-sale townhomes and condos, sales plummeted 23.5% year over year with 336 closings during the month. The average price increased 5.6% to $263,413, while the median fell 3.7% to $197,500.
Given the rate of sales, Houston’s townhome/condo inventory was a whopping 9.4 months, up from 8.2 months a year prior.