Houston Real Estate Market Trends for January 2025

As we enter 2025, Houston's real estate market continues to exhibit dynamic trends influenced by economic factors, demographic shifts, and evolving buyer preferences. Here's an analysis of the latest market data, including home prices, inventory levels, and neighborhoods in demand.

Home Prices

• In November 2024, the Houston Association of Realtors (HAR) reported a 6.0% increase in single-family home sales year-over-year, with 6,559 units sold compared to 6,187 in November 2023. -NORADA Real Estate

  
  

• The luxury segment, particularly homes priced over $1 million, led the market with a 21.4% increase in sales. -NORADA Real Estate

Inventory Levels

• The inventory of single-family homes has risen to a 4.4-month supply, up from 3.5 months in November 2023, indicating a shift towards a more balanced market. -NORADA Real Estate

  
  

• Townhouses and condominiums have experienced a decline in sales, with a 12.0% drop year-over-year. The median price for these properties decreased by 6.6% to $224,000, and the average price declined by 10.0% to $242,617. Inventory for townhouses and condominiums expanded to a 5.9-month supply, the highest since July 2012. -NORADA Real Estate

Neighborhoods in Demand

According to a recent survey, Houston-area real estate agents anticipate that Fulshear and The Woodlands will be among the most sought-after markets in 2025. -Houston Agent Magazine

Market Outlook

The Houston real estate market is expected to remain strong in 2025, with potential signs of cooling in certain areas, especially luxury housing. Affordability challenges persist for many buyers, but suburban areas and rental markets are projected to stay resilient.

HAR.com