Housing inventory expands to the highest level in nearly 13 years

Houston-area homebuyers are springing into action as expanding inventory and easing home prices create new opportunities across the region. This activity is a clear indicator of the ongoing shift toward a buyer’s market.

Houston’s single-family home sales recorded their largest year-to-date increase in May. According to the Houston Association of Realtors’ May 2025 Housing Market Update, sales rose 6.8 percent year-over-year, with 9,058 homes sold compared to 8,483 during the same time last year.

Both average and median home prices declined year-over-year. The average sales price declined by 0.7 percent to $438,230. The median price was down 1.2 percent to $339,425.

Growing inventory provided more opportunities for prospective homeowners in May. There were 37,455 active listings of single-family homes, which is an increase of 35.0 percent year-over-year. This is the highest volume of active listings since September 2007.

“With more homes to choose from and prices becoming a bit more favorable, buyers are definitely feeling more confident and getting back out there,” said HAR Chair Shae Cottar with LPT Realty. “This shift signals to sellers that motivated buyers are engaged and eager to take advantage of the current market conditions. We anticipate this momentum will carry us into the summer months.”

The rental market also experienced increased demand in May. You may read the May 2025 Rental Home Update on pages 14-15.

May Monthly Market Comparison

May marked a turnaround for the Houston real estate market. Overall property sales were 4.6 percent above last year’s volume, snapping a three-month streak of declining sales. This growth was accompanied by a 5.6 percent increase in total dollar volume, which reached $4.5 billion.

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Inventory continued to grow, with 58,005 available properties, which is a 29.4 percent increase compared to last May.

Single-Family Homes Update

May was a strong month for the Greater Houston housing market, as sales rose by 6.8 percent compared to the same period last year. A total of 9,058 homes were sold versus 8,483 a year ago. This positive momentum was mirrored in pending sales, which increased by 19.8 percent year-over-year.

The average sales price was $438,230, a 0.7 percent dip from last May, while the median price decreased 1.2 percent to $339,425. The price per square foot also edged down, from $182 to $180.

Active listings for single-family homes reached 37,455 in May, which is up 35.0 percent compared to last May. This volume represents the highest level of active listings since September 2007, when 37,500 units were on the market.

Months of inventory also rose, climbing from 3.9 months last May to a 5.2-months supply—a level last reached in July 2012. This figure surpasses the national average of 4.4 months as reported by the National Association of Realtors.

Days on Market, or the actual time it took to sell a home, also increased from 46 to 50 days.

Broken out by housing segment, home sales in the Houston area performed as follows:

  • $1 – $99,999: increased 23.8 percent
  • $100,000 – $149,999: increased 18.6 percent
  • $150,000 – $249,999: increased 12.0 percent
  • $250,000 – $499,999: increased 5.7 percent
  • $500,000 – $999,999: increased 0.2 percent
  • $1M and above: increased 6.3 percent

In May, existing home sales rose 5.1 percent with 6,370 closings compared to 6,059 last year. The average price was statistically flat at $458,299, and the median sales price was unchanged at $345,000.

For HAR’s Monthly Activity Snapshot (MAS) of the May 2025 trends, please CLICK HERE to access a downloadable PDF file.

Townhome/Condominium Update

Houston’s townhome and condominium market experienced a continued slowdown in May, marking the fourth consecutive month of declining sales. A total of 485 units were sold, which is a 12.9 percent decrease from the 557 units sold last May.

The average price declined 5.5 percent to $265,903, while the median price dropped 8.3 percent to $221,500.

Townhome and condominium listings increased to 3,311, resulting in a 7.8-month supply of inventory. This is a significant jump compared to the 4.6-month supply reported last year at this time. Inventory levels reached their highest point since September 2011, when the supply stood at 8.0 months.

Houston Real Estate Highlights in May

  • Single-family home sales increased 6.8% year-over-year;
  • Days on Market (DOM) for single-family homes went from 46 to 50 days;
  • The single-family median price declined 1.2% to $339,425;
  • The single-family average price was down 0.7% to $438,230;
  • Single-family home months of inventory expanded to a 5.2-months supply, up from 3.9 months last May.
  • Townhome and condominium sales declined 12.9% year-over-year. The median price declined 8.3% to $221,500, and the average price fell 5.5% to $265,903.
  • Total property sales increased 4.6% with 10,565 units sold;
  • Total dollar volume rose 5.6% to $4.5 billion.