January started the Houston real estate market with a burst of energy. Buyer activity picked up quickly in the first week of the year as many buyers re-entered the market with renewed motivation. Showings and inquiries increased, signaling strong early demand and optimism heading into 2026.
That momentum slowed slightly as freezing temperatures moved in. As any Houstonian can attest, Texans don’t enjoy getting out in the cold, and real estate activity tends to cool off right along with the weather. This temporary pause also contributed to a dip in inventory, as many sellers chose to pull their homes off the market following a slower-than-expected fourth quarter in 2025.
While inventory levels dropped in January, this is not expected to last. Many of those homes are likely to return to the market over the next few months. Historically, February and March are among the best times to list a home for sale in Houston. Milder weather and increased buyer activity make for better showing conditions compared to the extreme heat of summer, which can discourage buyers from touring homes.
With interest rates hovering around 6% and expected to continue trending downward throughout the year, buyer activity should increase as temperatures warm up in February. While the market may feel like it favors buyers today, conditions can shift quickly. As rates drop, more buyers are likely to jump back in—potentially increasing competition almost overnight.
Whether you’re considering buying or selling, the coming months are shaping up to be an important window of opportunity. The Energy Realty team will continue to monitor market trends closely and is here to help you navigate the Houston market with confidence.
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