Houston’s spring market is gaining momentum, according to the Houston Association of Realtors’ March 2026 Housing Market Update. Single-family home sales increased 3.7% year over year and jumped 29.17% from February to March. Pending sales also rose sharply, up 12.8% year over year and 20% month over month, signaling strong buyer activity heading into peak season.
At the same time, Days on Market climbed to 67 days, compared to 62 days last year, but improved slightly from 69 days in February. Overall, sales across all property types in Greater Houston rose 3.6% year over year and surged 28.15% month over month.
Per HAR / MLS:
| Category | Nov. 2025 | Dec. 2025 | Jan. 2026 | Feb. 2026 | Mar. 2026 | Apr. 2026 |
|---|---|---|---|---|---|---|
| Total Property Sales | 7,475 | 8,707 | 6,045 | 7,024 | 9,001 | 9.568 |
| Total Active Listings | 57,961 | 52,727 | 54,589 | 55,710 | 55,611 | 57,436 |
| Single-Family Home Sales | 6,347 | 7,456 | 4,999 | 5,918 | 7,644 | 8.196 |
| Townhome/Condominium Sales | 445 | 420 | 265 | 295 | 396 | 451 |
| Single-Family Months of Inventory | 5.0 | 4.5 | 4.7 | 4.8 | 4.7 | 4.9 |
| Single-Family Pending Sales | 6,784 | 6.043 | 6,813 | 7,894 | 9,474 | 9,476 |
| Days on Market | 60 | 64 | 66 | 69 | 67 | 60 |
| Price Range | Nov. 2025 | Dec. 2025 | Jan. 2026 | Feb. 2026 | Mar. 2026 | Apr. 2026 |
|---|---|---|---|---|---|---|
| $1 - $99,999 | 47 | 32 | 36 | 39 | 47 | 44 |
| $100,000 - $149,999 | 122 | 98 | 67 | 117 | 113 | 165 |
| $150,000 - $249,999 | 1,270 | 1,109 | 854 | 1,015 | 1,135 | 1,213 |
| $250,000 - $499,999 | 3,660 | 3,544 | 3,103 | 2,575 | 3,451 | 3,745 |
| $500,000 - $749,999 | 885 | 848 | 845 | 599 | 776 | 843 |
| $750,000 and above | 614 | 488 | 331 | 413 | 545 | 648 |
Summer is one of the busiest times of year for buying and selling real estate. If you’re planning to sell your home, it’s also a good time to think about the potential tax impact of your sale, because many homeowners may qualify to exclude some (or even all) of their profit from taxable income.
Here are a few key IRS guidelines to keep in mind if you’re selling your primary residence:
1. Ownership and Use Requirements
To qualify for the home sale exclusion, the IRS requires that you meet both an ownership and use test. This means that during the five-year period ending on the date you sell your home, you must have:
These two years do not have to be consecutive, but they must fall within the five-year window.
2. Capital Gains Exclusion
If you sell your primary residence and make a profit, you may be able to exclude:
If you exclude the entire gain, you typically don’t have to report the sale on your tax return—unless you receive Form 1099-S.
3. What If You Sell at a Loss?
If your home sells for less than what you paid for it, the IRS generally considers this a personal loss, and unfortunately, it is not deductible.
4. Selling More Than One Home
If you own multiple properties, the IRS exclusion applies only to the sale of your primary residence. Gains from selling second homes, rental properties, or investment properties may be taxable.
5. When the Sale Must Be Reported
You must report the sale if:
6. Mortgage Forgiveness and Canceled Debt
In some cases, such as foreclosures, mortgage workouts, or canceled debt, homeowners may be required to report forgiven mortgage debt as taxable income.
However, certain forgiven debt on a qualified principal residence may be excluded only if the debt was discharged before January 1, 2026, or if a written agreement for forgiveness was in place before that date.
7. Possible Exceptions
There are exceptions to the general rules for certain individuals, including:
These exceptions may allow qualification even when the standard requirements aren’t met.
8. Energy Efficient Home Improvement Credits (New for 2025 Taxes)
If you’re planning to claim the energy efficient home improvement credit, take note of a new requirement starting January 1, 2025.
For certain energy-efficient improvements placed into service in 2025, taxpayers must include a four-character alphanumeric Qualified Manufacturer Identification Number (QMID) for each eligible item.
Final Thought
If you’re thinking about selling this summer, or just want to understand your potential net proceeds better, planning ahead can make a major difference.
If you’d like help determining your home’s current market value, timing your sale, or preparing a strategy that maximizes your return, feel free to reach out anytime.
This newsletter is for general informational purposes only and is not provided by a tax professional. Please consult your accountant or other qualified tax advisor for guidance specific to your situation. This information is based on IRS guidance published at IRS.gov.
