The regional housing market is gaining momentum as we approach the spring homebuying season. In February, there was a slight dip in home sales while inventory and buyer activity increased in the region.
According to the Houston Association of Realtors’ February 2026 Housing Market Update, single-family home sales declined 2.2% year over year, with 5,918 homes sold compared to 6,050 last year. Despite the slight dip in closings, pending sales rose 13.0%, signaling continued buyer interest enhanced by falling interest rates now for eight consecutive months.
Home prices hit their lowest level in two years. The average home price rose 2.0% to $415,091, while the median price declined 0.9% to $322,078. At the same time, 30-year residential mortgage rates fell to the lowest level in more than 40 months, with the two combining for lower year-over-year mortgage payments in 16 of the past 19 months, resulting in improved affordability. Compared to a year ago, Houston single-family homebuyers in February 2026 had a monthly principal and interest payment that was $149 less than February 2025 – an annual savings of $1,786 assuming a 20% down payment on the median-priced home.
Homes also spent more time on the market. The average Days on Market reached 69 days, which is the highest level since March 2013 when it was 74 days.
Sales slowed in the $250,000 to $499,999 price range, which accounted for more than half of all homes sold in February. All other price segments posted sales growth.
“The Houston market continues to show signs of balance,” said HAR Chair Theresa Hill with Compass RE Texas, LLC – Houston. “Buyer interest remains strong, and the increase in showings and pending sales tells us the spring market is already beginning to take shape.”
Housing Market Overview
Sales of all property types across the Greater Houston area declined 3.3% year over year in February, with 7,024 properties sold. Total dollar volume was $2.8 billion, which is 1.7% below last year’s level.The number of active listings of all properties rose 14.3%, with 55,710 available properties.
Single-Family Homes Update
The Houston housing market recorded fewer closings in February compared to last year, with sales down 2.2%. Buyers purchased 5,918 homes during the month versus 6,050 in 2025.
While the U.S. housing sales market struggles to return to pre-pandemic levels, the number of single-family sales in Houston has returned to normal. U.S. existing home sales have plunged 24.8% for the 12 months ending January 2026 compared to January 2020. Home sales, however, are back to pre-pandemic levels in the 12 months ending February 2026.
“If you are waiting for the Houston housing market to bottom, it already did several years ago and is back to normal levels,” said HAR Chief Economist Dr. Ted C. Jones.
The median price declined 0.9% to $322,078, while the average price increased 2.0% to $415,091. The average price per square foot was down slightly to $170, the lowest level since January 2024, when it was $169.
Active listings of single-family homes rose 15.2% from a year earlier to 35,128 available properties. Housing supply grew to 4.8 months of inventory, up from 4.3 months last February. The National Association of Realtors reports a national average of 3.7 months.
Broken out by housing segments, single-family home sales performed as follows:
- $1 – $99,999: increased 36.6% (97 transactions)
- $100,000 – $149,999: increased 23.6% (183 transactions)
- $150,000 – $249,999: increased 12.2% (1,263 transactions)
- $250,000 – $499,999: decreased 9.9% (3,192 transactions)
- $500,000 – $999,999: statistically flat (938 transactions)
- $1M and above: increased 9.5% (241 transactions)
HAR also breaks out sales figures for existing single-family homes. In February, sales rose 5.0% year-over-year, with 4,019 closings compared to 3,826 a year ago. The average price edged up by 0.6% to $421,772, while the median price declined 1.5% to $320,000.
Townhome/Condominium Update
The townhome and condominium market also experienced a slowdown in February. Sales declined 7.4% year-over-year, with 299 units sold compared to 323 during the same time last year. Pricing softened, with the median price down 3.4% to $240,500, while the average price declined 3.5% to $276,835.
Inventory levels continued to expand, reaching an 8.1-months supply compared to 6.1 months a year earlier.
Houston Real Estate Highlights in February
- Single-family home sales declined 2.2% year-over-year.
- Days on Market (DOM) for single-family homes went from 60 to 69 days.
- The single-family median price declined 0.9% to $322,078.
- The single-family average price rose 2.0% to $415,091.
- Single-family home months of inventory expanded to a 4.8-months supply, up from 4.3 months a year ago.
- Townhome and condominium sales were down 7.4% with 299 units sold. The median price declined 3.4% to $240,500, and the average price was down 3.5% to $276,835.
- Total property sales declined 3.3% with 7,024 units sold.
- Total dollar volume was down 1.7% to $2.8 billion.
Editor’s note: The HAR report, lightly edited, is used by permission. Find the full report at har.com/content/department/mls?y=2026&m=03.
