Houston Real Estate Market Update: How Did January 2025 Perform?

yourrealestateangel
Feb 13
3 min read

Houston’s housing market started 2025 with strength, proving its resilience even in the face of a rare winter storm. While the snowfall briefly disrupted activity, buyers and sellers quickly returned, pushing the market to its fifth consecutive month of sales growth.

With home prices steadily rising, inventory levels expanding, and demand staying strong, January 2025 offered opportunities for both buyers and sellers. If you’ve been wondering whether now is the right time to buy, sell, or invest, this breakdown will give you the insights you need to make an informed decision.

Houston Housing Market Snapshot for January 2025

Single-family home sales: ⬆️ 1.2% increase (5,064 homes sold)
Median home price: ⬆️ 1.6% to $325,000
Average home price: ⬆️ 4.4% to $406,492
Days on Market (DOM): ⬆️ From 59 to 61 days
Inventory supply: ⬆️ 4.3 months (up from 3.2 months last year)
Luxury homes ($1M+): 20.7% increase in sales

What does this mean? The market remains balanced, with rising home prices but also more inventory for buyers to choose from.

Single-Family Home Trends: Prices, Inventory, and Days on Market

January marked the fifth consecutive month of single-family home sales growth, with 5,064 homes sold—a 1.2% increase from January 2024. While this growth isn’t as rapid as in previous years, it signals a healthy and stable market.

Price Trends

The median home price climbed 1.6% to $325,000, reflecting steady appreciation.
The average home price rose 4.4% to $406,492, showing that demand for higher-end homes remains strong.
Luxury homes ($1M+) saw a 20.7% increase in sales, making this segment the best-performing price range.

Inventory and Days on Market

Inventory expanded to 4.3 months, up from 3.2 months last January.
Days on Market (DOM) rose slightly to 61 days from 59 days last year.

💡 Key Takeaway: Buyers have more options than they did a year ago, and sellers need to price competitively to attract offers quickly.

Townhomes and Condos: A Surprising Comeback

While single-family homes dominated sales, the townhome and condo market also saw growth:

Townhome and condo sales increased by 6.8%, making this only the second time since June 2022 that this segment has been in positive territory.
The average condo price remained steady at $248,241, while the median price dipped slightly (4.1%) to $211,000.
Inventory expanded significantly, jumping from a 3.6-month supply to 5.6 months.

💡 Key Takeaway: The rise in townhome and condo sales could signal that buyers are looking for more affordable alternatives to single-family homes while still gaining the benefits of homeownership.

What This Means for Buyers, Sellers, and Investors

✅ For Buyers

More inventory = more choices → With higher supply, you can take more time to find a home that fits your needs.
Prices are rising, but at a manageable pace → Locking in a home now can help you avoid higher prices later in the year.
Mortgage rates remain a key factor → Keeping an eye on interest rate trends will be crucial in determining affordability.

✅ For Sellers

Higher inventory means more competition → Pricing your home correctly from day one is key to attracting buyers.
Luxury home demand is strong → If you’re selling a high-end home, now could be a great time to list.
Homes are taking longer to sell → Expect slightly longer listing times, so plan ahead if you’re looking to move soon.

✅ For Investors

Townhomes and condos are showing promise → With increased sales and stable prices, this segment could be a smart investment.
Rising rents are keeping rental demand strong → If you’re considering rental properties, Houston’s growing population and job market continue to support a strong rental market.

What’s Next for the Houston Market?

Looking ahead, the Houston real estate market remains strong, with rising home values, growing inventory, and steady demand. As we enter the spring season, expect: