Is Houston Entering a Balanced Market? June 2025 Update
- yourrealestateangel
- Jul 17
- 3 min read
The Houston real estate market continued to hold steady in June 2025, showing signs of resilience even as buyers weigh the impact of interest rates and sellers adjust their strategies. While some hesitation remains on both sides of the transaction, last month’s data paints a picture of a market that’s gradually moving toward balance.
Whether you're considering buying or selling this summer, understanding where things stand can help you make smarter, more confident decisions.
Buyer Activity Picks Up — Cautiously
June saw a year-over-year increase in both homes going under contract and homes sold.
Under contract in June 2025: 1,968 (up from 1,816 in June 2024)
Closed sales in June 2025: 1,887 (up from 1,809 last year)
This uptick suggests that while interest rates remain a concern for many buyers, others are reentering the market, recognising that waiting may not lead to better pricing or drastically lower rates anytime soon. The reality is that even in a higher-rate environment, motivated buyers are finding paths forward — especially when they have strong guidance and realistic expectations.
Home Prices Continue a Modest Climb
Median sale prices rose to $351,900 in June 2025, compared to $342,000 in June 2024. That’s a healthy, moderate gain, and one that reflects stability rather than the rapid price spikes seen during the pandemic market. For sellers, this signals continued demand. For buyers, it’s a reminder that waiting likely means paying more later.
Price growth today is driven more by steady demand than by competition or bidding wars. This is especially important as we shift into a more balanced market where pricing strategy matters more than ever.
Inventory Grows — Giving Buyers More Breathing Room
Inventory levels continue to improve:
Total active listings: 13,167
New listings in June: 4,316
Months of inventory: 4.5
Days on Market (DOM): 40
A 4.5-month supply brings us much closer to a balanced market, giving buyers more selection and slightly more time to make decisions. The 40-day average time on market indicates that while homes aren’t flying off the shelves, they are still moving at a healthy pace — especially when priced and marketed correctly.
For sellers, this means that presentation, pricing, and flexibility are key. For buyers, it means you have more negotiating power than you did during the peak frenzy of 2021–2022.
Are Buyers Still Hesitant?
Some are. High interest rates have led some buyers to pause and reassess. But that’s also created opportunity for those who are ready now. Fewer competing offers, growing inventory, and slightly more flexible sellers mean today’s buyers can make smarter offers and structure deals that work for them.
If you're planning to buy this year, you're not alone — you're just being smart about timing, financing, and selecting the right home with the right terms.
Are Sellers Becoming More Flexible?
In short — yes. Some sellers are beginning to offer buyer concessions such as rate buydowns, help with closing costs, or repairs. This flexibility is a sign that sellers understand today’s buyer mindset and want to keep deals moving.
If you're selling, it's important to work with an agent who can help you position your home correctly and negotiate effectively to make your listing stand out without leaving money on the table.
The Market Is Starting to Balance — and That’s a Good Thing
The June 2025 data suggests Houston’s housing market is moving toward long-overdue balance. Buyers have more options. Sellers are still seeing solid prices. And neither side holds all the leverage.
If you’re waiting for the market to become less “complicated,” you might be waiting a long time. The better move is to understand where the market is now and work with professionals who can help you navigate it with clarity and confidence.
Comments