Houston Housing Market November 2025: What Buyers and Sellers Need to Know
- Katie Curran
- Dec 10, 2025
- 4 min read
By Katie Curran | Keller Williams Signature
TL;DR:
Houston's November 2025 housing market brought welcome balance for both buyers and sellers. With home sales down slightly, inventory up 21%, and prices moderating, buyers gained more negotiating power while sellers with realistic pricing continued attracting offers. The median home price dipped to $325,000 as mortgage rates improved to 6.24%.
How Is Houston's Housing Market Performing?
Houston's housing market ended November on a balanced note, with single-family home sales dipping 2.3% year-over-year to 6,347 homes sold. This marks the first decline since April, but pending sales climbed 7.2%, signaling continued buyer interest heading into year-end. The market is finding equilibrium after months of inventory growth and modest price corrections.
The median home price declined 1.5% to $325,000, while the average price edged up slightly to $422,552, driven primarily by luxury market activity. Homes priced at $1 million and above saw a 23.4% increase in sales, representing the strongest performing segment. Meanwhile, sales in the $250,000 to $999,999 range, which accounts for 72% of all transactions, experienced slower activity.
What's Happening with Home Inventory?
Active listings totaled 36,620 homes in November, up 21% from last year. Housing supply expanded to 5.0 months of inventory compared to 4.3 months a year earlier, though this remains below the national average of 4.4 months. This increase gives buyers more time to evaluate options and negotiate terms without the pressure of multiple-offer situations that dominated previous years.
The average list-to-sale price ratio declined to 92.2% in November, the lowest level since HAR began tracking this metric in 2001. Homes spent an average of 60 days on the market, up from 53 days last year. These indicators suggest sellers need to price competitively and remain flexible during negotiations. Properties that align with current market expectations continue attracting offers, while overpriced listings linger.
How Have Mortgage Rates Affected Affordability?
Mortgage rates improved significantly year-over-year, dropping from 6.81% in November 2024 to 6.24% in November 2025. For buyers purchasing a median-priced home with 20% down, this translates to monthly savings of $123.67, or nearly $1,500 annually. The monthly principal and interest payment on a $325,000 home dropped from $1,722.84 to $1,599.17.
This rate improvement, combined with moderating prices, has created better buying conditions than we've seen in recent months. Buyers who were priced out earlier in the year may find opportunities now, particularly as sellers become more willing to negotiate on price and terms. The combination of lower rates and increased inventory has shifted leverage back toward buyers.
What Should Sellers Expect?
Sellers should approach the market with realistic pricing expectations and flexibility. The luxury segment continues performing well, but properties in the middle and entry-level price ranges require strategic positioning. Homes that show well, are priced accurately from the start, and offer reasonable terms are still generating competitive interest.
The decline in the list-to-sale ratio indicates buyers are successfully negotiating below asking price more frequently. Sellers who overprice risk extended market time and eventual price reductions that signal distress to potential buyers. Working with an experienced agent to analyze comparable sales and position your property competitively makes the difference between a smooth sale and a stagnant listing.
If you're considering selling your Houston-area home in early 2026, now is the time to prepare. Strategic improvements, professional staging, and accurate pricing will position you ahead of spring inventory increases.
FAQs
Q: Is now a good time to buy a home in the Houston area?
A: Yes, current conditions favor buyers more than we've seen in the past two years. With inventory up 21%, prices moderating, and mortgage rates down to 6.24%, buyers have more negotiating power and time to make informed decisions. The expanded 5.0 months of supply means less competition and more opportunities to find the right property without rushing.
Q: What price range is most competitive in Houston right now?
A: The luxury segment priced at $1 million and above showed the strongest growth with sales up 23.4% year-over-year. However, the $250,000 to $999,999 range, which represents 72% of all sales, has slowed, creating opportunities for buyers in this bracket. If you're exploring homes in Katy, you'll find more options and better negotiating leverage than earlier this year.
Q: How long are homes staying on the market?
A: Homes averaged 60 days on the market in November, up from 53 days last year. This extended timeline gives buyers additional breathing room to conduct inspections, secure financing, and negotiate terms. Well-priced homes in desirable areas still move relatively quickly, but the pressure of instant decision-making has eased considerably.
Q: What does the lower list-to-sale ratio mean for negotiations?
A: The 92.2% list-to-sale ratio indicates buyers are successfully negotiating below asking price more frequently than ever since tracking began in 2001. This shift means sellers need to price realistically from the start and be open to reasonable offers. For buyers considering Fulshear or surrounding communities, this creates leverage to negotiate favorable terms and potentially request seller concessions.
Q: Should I wait until spring to list my home?
A: While spring typically brings more buyers, waiting could mean facing increased competition from other sellers. If your home is well-prepared and priced accurately, listing now allows you to capture motivated buyers before inventory surges in February and March. The key is working with an agent who understands current market dynamics and can position your property strategically.
By Katie Curran | Keller Williams Signature
Katie Curran | Houston Area REALTOR® | Keller Williams Signature
920 S Fry Rd, Katy, TX 77450
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