As we move through the spring market here in Houston, the pace has been a bit slower than many of us anticipated at the start of the year. A big factor behind this shift has been broader economic uncertainty, including global tensions such as the recent conflict involving Iran, which temporarily pushed interest rates higher and caused some buyers to pause.

The good news is that we’re beginning to see some stabilization. Interest rates have started to ease slightly, which is helping restore confidence and bringing buyers back into the market. Although rates are still hovering in the low-to-mid 6% range, buyers are adjusting—and activity is gradually picking back up.

One of the most notable trends right now is the increase in inventory. We’re currently seeing over a 4.5-month supply of homes across the Houston area, a meaningful shift from the tighter conditions of the past few years. This increase is being driven in part by continued new construction and more resale listings hitting the market. As a result, Houston is transitioning into a more balanced market, with a slight advantage for buyers.

Home prices are also reflecting this shift. Rather than the rapid appreciation we saw in previous years, prices are now leveling off, with some segments experiencing slight year-over-year declines of 1–3%. This isn’t a downturn—it’s a healthy correction and stabilization that creates a more sustainable environment for both buyers and sellers.

For buyers, this presents a real opportunity. With more homes to choose from, there’s greater flexibility, less competition, and more time to make informed decisions. We’re also seeing fewer bidding wars and more room for negotiation, especially in mid- to higher-priced homes. Well-priced homes under $250,000 are still moving quickly, but overall demand has become more selective and price-sensitive.

For sellers, this changing landscape means strategy matters more than ever. Proper pricing, strong presentation, and thoughtful marketing are key to standing out as buyers have more options available. Homes are also taking a bit longer to sell—averaging closer to 45–60 days—so patience and preparation are essential.

Another important trend is where buyers are choosing to purchase. Affordability continues to drive demand, with increased activity in suburban and outlying areas such as Brookshire, Waller, Crosby, and Magnolia, where buyers can get more value for their money.

Overall, while this spring hasn’t had the rapid pace we initially expected, the market is healthy and evolving. We’re seeing a clear shift away from the extreme seller’s market of recent years toward a more balanced, stable environment. As interest rates continue to adjust and inventory remains elevated, we anticipate steady, sustainable activity heading into the summer months.

If you’ve been waiting for the right time to make a move, this could be it—especially for buyers ready to take advantage of increased selection, more negotiating power, and improving financing conditions.

As always, our team at Energy Realty is here to help you navigate the market with confidence.

SHERRY CAMPBELL
Broker/Owner | Energy Realty