Houston Housing Market Update: September 2026 — Activity Eases as Rates Rise
By Jimmy Villanueva
What happened in the Houston housing market in September 2026? According to the Houston Association of REALTORS’ September 2026 Housing Market Update, homebuying activity eased as mortgage rates moved above 7 percent. Single-family sales declined while prices held steady and inventory expanded, giving buyers more choices and more time.
Key Houston Housing Market Numbers for September 2026
Single-family sales: 7,030 (down 5.7% year over year)
Pending single-family listings: 6,789 (down 11.6%)
Active single-family listings: 40,192 (up 6.3%)
Months of inventory: 5.5 (up from 5.1)
Median single-family price: $325,000 (essentially unchanged)
Average single-family price: $421,311 (up 0.7%)
All property types sold: 8,181 (down 6.4%)
Total dollar volume: $3.45 billion (down 2.1%)
Single-Family Home Sales and Prices
Single-family home sales totaled 7,030 in September, a 5.7 percent decrease from the same month a year earlier. Pending listings also softened, falling 11.6 percent to 6,789. At the same time, the number of homes for sale rose 6.3 percent to 40,192, pushing inventory from 5.1 months to 5.5 months.
Prices remained stable. The median price, which represents the midpoint of all homes sold, was essentially unchanged at $325,000. The average sales price edged up 0.7 percent to $421,311. Buyers of median-priced homes faced higher monthly payments as rates climbed. Freddie Mac reported average 30-year rates rising through September and reaching 7.03 percent in the final week, then moving to 7.28 percent and 7.40 percent in the first two weeks of October.
All Property Types, Existing Homes, and Condos/Townhomes
Across all property types, 8,181 properties sold in September, down 6.4 percent from a year ago. Total dollar volume reached $3.45 billion, a 2.1 percent decline. Active listings across all property types rose 5.0 percent to 62,002 available properties.
Existing single-family home sales (excluding new construction) held steady compared with last September, with 5,062 closings. The average price on existing homes declined 1.1 percent to $427,110 while the median remained unchanged at $325,000.
The townhome and condo segment showed more softness. Sales fell 21.0 percent to 323 units. The median price dropped 9.1 percent to $209,000 and the average fell 4.6 percent to $261,052. Active listings rose 6.9 percent to 3,609, pushing inventory to 9.3 months from 8 months a year earlier.
What This Means for Houston Home Buyers
Buyers entered September with more inventory and a slightly longer decision window. With 5.5 months of single-family supply and pending sales down, competition was less intense than a year ago in many price ranges. Higher mortgage rates above 7 percent increased monthly payments, so affordability remained the central constraint even as prices stayed flat. The broader selection of homes gave buyers more room to compare options and negotiate.
What This Means for Houston Home Sellers
Sellers continued to see stable prices, with the median holding at $325,000. However, the combination of higher rates and more active listings meant homes generally took longer to attract offers. The rise in inventory to 5.5 months shifted the market toward more balanced conditions. Accurate pricing and strong presentation remained important, particularly for properties competing against both resale and new-construction inventory.
Higher mortgage rates are making buyers look more closely at what they can comfortably afford. People are taking a little more time, weighing their options and focusing on long-term affordability. Stable prices and a broad selection of homes are helping keep opportunities within reach.
— Houston Association of REALTORS
Source: Houston Association of REALTORS September 2026 Housing Market Update
Written by the Space City Team
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