Is the Houston housing market slowing down? That’s the question on a lot of sellers’ minds right now. This Houston housing market update looks at fresh national data from August. It also compares that data to Houston’s own numbers. Then it breaks down what it actually means if you’re thinking about selling. We’re The Jamie McMartin Group, a Houston-area real estate team with Compass. We track these shifts closely so our clients never have to guess.
Quick answer: The national housing market cooled slightly in August. However, Houston’s most recent local data, from July 2026, still showed modest gains in sales and price. Here’s what stood out:
- Nationally, pending home sales fell 0.2% year over year in August, per Realtor.com. That’s the first annual decline since November 2025.
- Mortgage rates averaged 6.66% as of late August, per Freddie Mac, up from a February low of 5.98%.
- In Houston, active inventory hit a record high in July, giving buyers more choices than ever.
- Houston homes took an average of 53 days to sell in July, three days longer than a year earlier.
In short, this looks like a market that rewards realistic pricing. It’s not a market in free fall.
What Did the Latest National Housing Data Show?
Nationally, the housing market cooled off in August. Pending home sales fell 0.2% year over year, according to Realtor.com data reported by Newsweek. That might sound small. However, it marked the first annual decline since November 2025. It also ended an eight-month streak of gains that peaked at 4.1% in May.
Contract signings told a similar story. They fell 3.7% compared to a year earlier. That’s the second straight monthly drop as higher mortgage rates weighed on buyers. Meanwhile, homes spent a median of 60 days on the market in August. That’s three days longer than July, though it was unchanged from a year earlier.
Mortgage rates played a big role in this shift. The 30-year fixed rate averaged 6.66% as of August 27, per Freddie Mac. That’s up significantly from a February low of 5.98%. As a result, many buyers are simply taking longer to commit.
How Does the Houston Housing Market Compare?
Houston’s own numbers tell a slightly different story. In fact, Houston didn’t see the same pullback the national data showed. Single-family home sales rose 1.6% year over year in July 2026. That’s 8,340 homes sold, according to the Houston Association of Realtors (HAR).
Prices also inched up. The median price reached $340,000, up 0.6% year over year, while the average price climbed to $440,816, up 1.9%. So far, that’s a healthier picture than the national headlines suggest.
That said, Houston shares one clear trend with the rest of the country. Both markets have more inventory and more time on market right now. Active listings hit a record high of 40,750 homes in July, up 3.4% year over year. Meanwhile, homes averaged 53 days on the market, three days longer than in July 2025. Houston currently has about 5.5 months of housing supply, compared to roughly 4.6 months nationally.
This spacious lot is just shy of an acre and offers the perfect opportunity to create something entirely your own, with quick access to I-45 and an easy drive to downtown Houston.
Why Are Mortgage Rates Still a Factor for Houston Buyers?
Mortgage rates remain one of the biggest forces shaping buyer behavior. Rates have climbed from a February low of 5.98% to 6.66% by late August, according to Freddie Mac. That increase adds real cost to a monthly payment, even on a similarly priced home.
Because of this, some buyers are pausing to reassess their budgets. Others are negotiating harder on price instead of walking away. Every buyer’s situation is different. So, we always recommend talking with a qualified mortgage lender about your specific rate and loan options.
What Does a Cooling Market Mean If You’re Selling a Houston Home?
Selling a Houston home in this environment still works. It just requires a different approach than it did a year or two ago. With more inventory on the market, buyers have more options, and they’re comparing homes more carefully.
Here’s what that means in practice:
- Pricing matters more. Overpriced homes tend to sit, then require a price cut later. That can make a listing look stale to buyers browsing online.
- Presentation matters more. With more competition, professional photos, staging, and small repairs help a home stand out.
- Patience helps. A 53-day average in Houston is still reasonable. Still, sellers should expect a bit more time than during the fastest-moving years.
Weighing your options? Our post on whether to sell now or wait covers the tradeoffs in more detail.
How Should You Price a Home in a Slower-Moving Market?
Pricing correctly from day one matters more than ever right now. A home priced to match current comparable sales tends to attract serious buyers quickly. One priced too high, on the other hand, often sits and loses momentum.
We build every listing price around a full comparative market analysis (CMA), not a guess. That means looking at recent, comparable sales in your specific neighborhood, not just citywide averages. For a deeper look at how this works, see our guide on pricing your Houston home to sell.
What Should Sellers Know About Buyer Agreements Right Now?
Most buyers now sign a written buyer representation agreement before touring homes with an agent. This practice became standard after 2024 changes tied to the National Association of Realtors (NAR) settlement. The agreement outlines your buyer’s agent’s services and how they’re compensated, and that compensation is negotiable.
As a seller, this doesn’t change your obligations, but it does shape how offers come together. We walk our seller clients through exactly what to expect from buyers’ agents during this process.
Comparison of national and Houston housing market trends, including sales, prices, days on market, and active inventory.
Sources: Realtor.com data via Newsweek (national); Houston Association of Realtors, July 2026 Housing Market Update (Houston).
Jamie McMartin, Team Lead and CEO of The Jamie McMartin Group, reviews market data at the team’s Houston office.
Is Now Still a Good Time to Sell in Houston?
There’s no single answer that fits every seller. It depends on your timeline, your neighborhood, and your goals. However, the data suggests Houston sellers still have real opportunity, especially with the right pricing strategy.
“Houston isn’t seeing the same pullback some national headlines describe,” says Jamie McMartin, founder of The Jamie McMartin Group. “But buyers are more selective now. With more homes to choose from, pricing and presentation matter more than they did a year ago.”
Because market conditions shift month to month, we recommend a fresh comparative market analysis before you list, not a number based on last year’s trends.
How The Jamie McMartin Group Helps Houston Sellers Navigate This Market
We watch HAR’s monthly data, national trends, and neighborhood-level activity every week. That way, we can help you price, prepare, and market your home with real numbers, not guesswork. Our team has guided Houston-area sellers through faster markets and slower ones alike.
Whether you’re in Katy, Fulshear, Cypress, or Richmond, we tailor our strategy to your specific neighborhood and home. You can also browse our current Houston-area listings to see how we position homes in today’s market.
Ready to Talk About Selling Your Houston Home?
If you’re considering a move, now is a good time to get an honest read on your home’s value. Our team will walk you through current comparable sales, pricing strategy, and a realistic timeline.
Contact The Jamie McMartin Group today to schedule a no-pressure conversation about your Houston home.
Frequently Asked Questions
Is the Houston housing market slowing down right now?
Nationally, yes, some measures like pending home sales and contract signings cooled in August. However, Houston’s most recent local data, from July 2026, still showed sales and prices ticking up. Both markets share one trend: more homes for sale and slightly longer days on market.
Why did national pending home sales fall in August?
Higher mortgage rates played a major role. Rates climbed from a February low of 5.98% to 6.66% by late August, according to Freddie Mac. That increase made monthly payments less affordable for some buyers, slowing contract activity.
Should I wait to sell my Houston home until the market improves?
That depends on your personal timeline and goals, and we can’t predict future market conditions. Some sellers do better acting now, while local inventory is still moving. We recommend a personalized conversation with our team before deciding.
How long does it typically take to sell a home in Houston right now?
Houston homes averaged 53 days on the market in July 2026, per HAR. That’s about three days longer than a year earlier. Your specific timeline depends on price, condition, location, and how your home is marketed.
Will mortgage rates come down soon?
We can’t predict future rate movement, and this touches on financial planning outside our expertise. For guidance on rates and loan options, we recommend speaking with a qualified mortgage lender.
