Despite a rare winter storm, Houston’s housing market demonstrated remarkable resilience in January 2025, particularly within the single-family home sector. According to the Houston Association of Realtors’ (HAR) January 2025 Housing Market Update, sales of single-family homes in the Greater Houston area experienced a positive trajectory for the fifth consecutive month. This consistent growth highlights the underlying strength of the Houston real estate market and its appeal to homebuyers.
Houston Single-Family Home Sales Continue Upward Trend
In January 2025, single-family home sales in Houston increased by 1.2 percent compared to the same period last year, with 5,064 units sold versus 5,002 in January 2024. This marks the fifth straight month of year-over-year gains, a sustained period of growth not seen since the first half of 2021. This positive sales trend for Houston single family homes indicates a robust market as it enters the spring buying season.
Chart showing positive trend of single-family home sales in Houston
The luxury segment of the market, defined as homes priced at $1 million and above, saw a significant surge in buyer interest, with sales jumping by 20.7 percent year-over-year. The near-luxury market, homes priced between $500,000 and $999,999, also performed strongly, recording an 8.1 percent increase in sales. While homes in the $250,000 to $499,999 price range constituted the largest share of sales in January, this segment experienced a slight decrease of 1.6 percent compared to the previous year. Homes priced at $149,999 and below also saw a decrease in sales activity, suggesting that the higher end of the market is currently driving growth in Houston single family homes.
Key Metrics for Houston Single-Family Home Market
The average price for single-family homes in Houston rose to $406,492 in January 2025, a 4.4 percent increase from January 2024. The median price also saw an uptick, increasing by 1.6 percent to $325,000. Furthermore, the price per square foot for Houston single family homes climbed to $174, up from $169 in the previous year, indicating increasing property values.
Graph illustrating the increase in single-family home sales in Houston in January 2025
Active listings for single-family homes were up by 33.3 percent compared to January 2024. For the past eight months, active listings have hovered around 30,000 units, demonstrating a healthy equilibrium between supply and demand in the Houston single family homes market.
Chart depicting active listings for single-family homes in Houston, indicating market balance
The Days on Market (DOM), which measures the time it takes to sell a home, slightly increased from 59 to 61 days. Months of inventory, a key indicator of market balance, expanded to 4.3 months, up from 3.2 months the year before. It’s worth noting that the current national supply stands at 3.3 months, according to the National Association of Realtors (NAR), suggesting Houston’s inventory is slightly higher but still indicative of a balanced market.
Analyzing sales performance across different price segments reveals further detail:
- $1 – $99,999: Decreased 4.1 percent
- $100,000 – $149,999: Decreased 10.4 percent
- $150,000 – $249,999: Increased 3.0 percent
- $250,000 – $499,999: Decreased 1.6 percent
- $500,000 – $999,999: Increased 8.1 percent
- $1M and above: Increased 20.7 percent
Sales of existing single-family homes in Houston also showed positive momentum in January, totaling 3,493 units, a 2.5 percent increase year-over-year. The average price for existing homes rose by 7.6 percent to $415,004, and the median sales price increased by 4.5 percent to $323,000.
Townhouse and Condominium Market Update
The townhouse and condominium market in Houston also experienced positive developments in January 2025. Sales increased by 6.8 percent, reaching 360 units, marking only the second instance of positive sales growth since June 2022. The average price for townhouses and condominiums remained statistically flat at $248,241, while the median price saw a decrease of 4.1 percent to $211,000.
Chart showing trends in Houston Townhouse and Condominium market
Inventory in the townhouse and condominium segment expanded to a 5.6-months supply, compared to 3.6 months in January of the previous year, indicating a shift towards a more buyer-friendly market in this sector.
January Houston Real Estate Market Highlights
Overall, the Houston real estate market in January 2025 presents a picture of sustained growth and balance, particularly within the single-family home sector. Key highlights include:
- Single-family home sales up by 1.2 percent year-over-year.
- Single-family Days on Market slightly increased to 61 days.
- Total property sales increased by 1.3 percent, with 6,173 units sold.
- Total dollar volume surged by 8.9 percent to $2.5 billion.
- Single-family median price rose by 1.6 percent to $325,000.
- Single-family average price increased by 4.4 percent to $406,492.
- Single-family home inventory reached a 4.3-months supply.
- Townhouse/condominium sales increased by 6.8 percent year-over-year.
These indicators suggest a healthy and dynamic Houston housing market, with single family homes leading the way in sustained positive momentum. As the market moves into the traditionally busier spring and summer months, Houston appears well-positioned to continue this trend, offering a balanced environment for both buyers and sellers interested in Har Com Single Family Homes and the broader real estate landscape.
