November Noteworthy News

BUYING | SELLING | LEASING | RELOCATION | PROPERTY MANAGEMENT

OCTOBER CHILL BRINGS COOLER SALES, MORE CHOICES FOR HOUSTON BUYERS

Home prices hold steady as supply reaches a 14-year high

The Greater Houston housing market saw a change in pace in October, offering buyers more choices while sellers adjusted to a shift in activity.

According to the Houston Association of Realtors’ October 2026 Housing Market Update, single-family home sales were 14.9% below last year’s level, with 6,348 homes sold.

The average home price held steady in October at $421,100, while the median price declined 3.0% to $320,000, its lowest level since January 2024.

The number of homes on the market remained near record levels, with 40,253 single-family homes for sale, up 6.8% from last October.

“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 with Compass RE Texas, LLC - Houston. “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.”

Housing Market Overview

Across all property types, 7,485 properties were sold in October, down 15.1% compared with a year earlier. Total dollar volume dipped 14.6% to $3.06 billion. The number of active listings across all property types increased 4.8% to 61,965

Despite October’s decline, single-family home sales through the first 10 months of 2026 remained within 2% of last year’s pace. Stronger sales during the spring and early summer helped offset the declines recorded in recent months.

Single-Family Homes Update

In October, 6,348 single-family homes sold across the Houston area, compared with 7,458 during the same time last year. That represents a decline of 14.9%.

October’s single-family home sales were the fewest for any October in the past 10 years. However, total sales over the prior 12 months reached 87,433, remaining above the 2019 level of 85,685, the last normal year before the pandemic.

The average price was virtually unchanged at $421,100. The median price was $320,000, which is 3.0% below last year’s level. It is the lowest median price for any October since 2021, with an October peak of $335,000 in 2024.

The average mortgage rate in October was 7.33%, up 108 basis points from a year ago, but still below the 7.62% recorded in October 2023. Buyers of a median-priced home paid an estimated monthly mortgage payment (including principal and interest) of $1,760.28. That is $134.79 more than a year ago but less than the $1,845.03 paid in October 2023, when both rates and median home prices were higher.

“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 C. Jones.

Homes spent an average of 59 days on the market, unchanged from last October. Pending sales, which represent homes under contract but not yet sold, declined 17.6% to 6,445.

The market had a 5.5-month supply of single-family homes, unchanged from September and its highest level since 2012. Nationwide, there was a 4.8 months’ supply, according to the National Association of Realtors.

Broken out by housing segments, single-family home sales performed as follows:

$1 - $99,999: increased 2.1% (97 transactions)
$100,000 - $149,999: decreased 1.0% (191 transactions)
$150,000 - $249,999: decreased 9.4% (1,339 transactions)
$250,000 - $499,999: decreased 16.8% (3,368 transactions)
$500,000 - $999,999: decreased 16.9% (1,061 transactions)
$1M and above: decreased 11.6% (291 transactions)

HAR also reports on existing single-family home sales, which fell 10.2% in October. The average price declined slightly to $428,790, while the median price was down 4.5% to $315,000.

HAR will publish its October 2026 Rental Market Update on Wednesday, November 18.

For HAR’s Monthly Activity Snapshot of the October 2026 trends, please CLICK HERE to access a downloadable PDF file.

Townhome/Condominium Update

The townhome and condominium market also recorded fewer sales in October. Sales declined 23.5% year over year, with 336 properties sold compared with 439 last October.

The average sales price increased 5.8% to $263,413, while the median price declined 3.7% to $197,500.

Active listings climbed 5.6% to 3,586 properties. The supply of townhomes and condominiums expanded from 8.2 months to 9.4 months, while days on market edged up to 65 days.

Houston Real Estate Highlights in October

Single-family home sales declined 14.9% year over year.
Pending single-family sales declined 17.6% to 6,445.
Active single-family listings increased 6.8% to 40,253.
The average single-family home price was flat at $421,100.
The median single-family home price declined 3.0% to $320,000, its lowest level since January 2024.
Single-family homes took an average of 59 days to sell, unchanged from last year.
The supply of single-family homes increased from 5.1 months to 5.5 months.
Total property sales declined 15.1%, with 7,485 transactions.
Total dollar volume declined 14.6% to $3.06 billion.