The Houston housing market is showing signs of shifting toward a more balanced environment, giving buyers more options and a little more time to make decisions.
According to the Houston Association of Realtors February 2026 Housing Market Update, single-family home sales declined slightly by 2.2% compared to February 2025, though activity increased 18.38% from January, reflecting the typical seasonal pickup as the spring market begins.
While closings dipped slightly year over year, pending sales rose 13% from last year and 15.87% from the previous month, suggesting that buyer interest remains strong. One factor helping support demand is the steady decline in mortgage rates, which have now fallen for eight consecutive months, improving affordability for many buyers.
Home prices have also adjusted, reaching their lowest level in two years, which may further encourage buyers who had been waiting on the sidelines.
Another noticeable shift is the amount of time homes are staying on the market. Average Days on Market rose to 69 days, the longest selling timeline since March 2013, when the average was 74 days. This change indicates that the intense pace seen in recent years is easing, allowing buyers more time to evaluate homes and make thoughtful decisions.
Looking at the broader market, total sales across all property types in the Greater Houston area declined 3.3% year over year, but rose 16.2% from January, reinforcing that the market is gaining momentum as we move into the spring season.
Inventory also continues to grow. Active listings increased 14.3% compared to February 2025 and rose 2.05% month over month, giving buyers a wider selection of homes across many price points and neighborhoods.
Overall, the Houston market is moving toward a healthier balance—one where buyers benefit from more choices while sellers can still take advantage of strong long-term demand in one of the nation’s fastest-growing metropolitan areas.
