As we charge full speed into the summer real estate season, the market has proven to be just as unpredictable as the stock market. Despite mortgage rates holding steady around 7%, buyer behavior has shifted—and not in the direction we expected.

While many buyers seemed to accept 7% interest rates during the first quarter of the year, activity slowed in April and May. A wave of economic uncertainty—fueled by tariffs and stock market volatility—led many to hit the pause button on home purchases. As a result, home sales dropped by 3.5% compared to April 2024.

The most notable shift? Inventory levels have now surpassed pre-COVID highs, with Houston averaging around a 5-month supply. Of course, Houston is a city made up of many smaller markets, so conditions vary by neighborhood. But overall, buyers are proceeding with caution, and homes are taking longer to sell—averaging 39 to 44 days on the market, which is a 14% increase over last year.

April through June is traditionally our hottest selling season, but like this year’s weather, the market has been full of ups and downs. The good news? If interest rates begin to drop, we could see things heat up in July or this fall.

The key takeaway this summer is that buyers are no longer willing to overpay—they want value, and they have options. Sellers must be realistic about pricing and ensure their homes are market-ready. While some areas in town remain competitive, many suburbs are seeing home prices soften more quickly, tilting the scales toward a buyer’s market.

In a market this nuanced and unpredictable, it’s more important than ever to work with a knowledgeable professional who understands the shifts, reads the trends, and can help you navigate the path to a successful sale or purchase.