The Houston housing market is increasingly stable heading into the new year, according to the latest Market Update from the Houston Association of REALTORS®.

Greater Houston saw the sixth-consecutive month of year-over-year home-sale growth in October as closings increased 3.2% with 7,419 homes sold. Pending sales also grew 13.1%, with 7,822 listings going under contract.

“Unlike the U.S. housing market, which lags pre-pandemic home-sales volumes, Houston has returned to a normal market that is growing,” HAR Chief Economist Ted Jones said in a press release.

Image courtesy of HAR.

Meanwhile, softened mortgage rates and stagnant prices meant improved affordability for homebuyers: The average home price was statistically flat at $423,955, and the median declined 1.5% to $300,000, marking the seventh-straight month of annual home-price decreases.

Furthermore, the close-to-list price ratio fell to 92.6% — the lowest level recorded since 2001, when HAR began tracking the data. That means the typical seller received about 7.4% less than asking price.

Based on those metrics, October’s typical Houston homebuyer with a 20% down payment will have a monthly mortgage payment of $1,626.97 — $55 cheaper than payments a year prior.

“Despite the government shutdown, which temporarily ceased purchases of flood insurance from the National Flood Insurance Program, and some uncertainty in the economy, homebuying interest in Houston remains solid,” said HAR Chair Shae Cottar. “Prices have softened, inventory is up and mortgage rates are coming down — all of which are giving buyers more room to breathe. The frenzied pace of recent years has eased, and the market has leveled out, ultimately benefitting both buyers and sellers.”

Active listings jumped 23% year over year last month, with 59,903 properties on the market. Given the rate of sales, Houston had a 5.2-month inventory, up from 4.4 months in October 2024.