Luxury segment leads the way with an uptick in single-family home sales

HOUSTON — (April 9, 2025) — Despite economic uncertainty, the Greater Houston housing market blossomed in March as sales rebounded amid a budding supply of homes. Easing interest rates and moderating home prices attracted more prospective buyers as there continues to be a shift toward a buyer’s market.

According to the Houston Association of Realtors’ March 2025 Housing Market Update, single-family home sales across the Greater Houston area rose 2.6 percent year-over-year, with 7,429 units sold. It is the highest sales volume recorded since July 2024. Pending sales, which were up 12.7 percent compared to last March, indicate that the spring homebuying season will likely continue to be active. A total of 32,866 homes were available on the market in March, reaching the highest point since June 2011. The increase in inventory is great news for prospective buyers offering the best selection opportunities in 14 years.

The median home price edged up by 1.5 percent to $335,000 while the average price was up 3.7 percent year-over-year to $427,221. The growth in home prices is largely due to the high end of the market, which saw a surge in activity in March.

The luxury segment ($1 million+) had the strongest performance with a 26.9 percent increase in transactions compared to the same time last year. The segment with homes priced up to $100,000, which makes up 1.0 percent of the market, saw a 14.0 percent decline in transactions. All other housing segments experienced an increase in sales in March.

“Lower mortgage rates are giving Houston homebuyers a sense of optimism, but many are still proceeding with caution,” said HAR Chair Shae Cottar with LPT Realty. “It’s important to acknowledge that current economic headwinds, including the impact of new tariffs, are putting downward pressure on interest rates. These lower rates, coupled with growing inventory and moderating home prices, create an opportunity for both buyers and sellers. Your Realtor is your trusted advisor and will help you navigate the housing market.”

HAR will publish its March 2025 Rental Home Update on Wednesday, April 16.

March Monthly Market Comparison

The Greater Houston real estate market held steady in March, with total property sales statistically flat at 8,753 units. Sales of single-family homes and country homes were in positive territory. All other property types experienced a slowdown in sales. Total dollar volume increased 5.1 percent to $3.6 billion. Active listings, or the total number of available properties, were 29.3 percent higher than last year’s volume.

The number of open houses reached an all-time high in March. Realtors hosted a total of 45,311 open houses, which is up 48.9 percent compared to the same time last year.

Single-Family Homes Update

Single-family home sales bounced back in March, a month after their first decline in six months. Sales in the Greater Houston area were 2.6 percent above last year’s figures, with 7,429 homes sold compared to 7,240 in 2024.

The average home price rose 3.7 percent year-over-year to $427,221 while the median price experienced a modest increase of 1.5 percent to $335,000. The price per square foot increased to $179 from $176 last year.

The market continued to see a sustained increase in inventory. There were 32,866 active listings of single-family homes in March, which is up 36.4 percent year-over-year. It is the highest volume of active listings since June 2011 when there were 32,970 units.

Days on Market, or the actual time it took to sell a home, climbed from 55 to 62 days. Months of inventory reached a 12-year high, with the months’ supply increase from 3.4 last year to 4.6 months. The National Association of Realtors reports a national inventory level of 3.5 months.

Broken out by housing segment, March sales performed as follows:

$1 - $99,999: decreased 14.0 percent
$100,000 - $149,999: increased 3.0 percent
$150,000 - $249,999: increased 0.6 percent
$250,000 - $499,999: decreased 0.4 percent
$500,000 - $999,999: increased 3.6 percent
$1M and above: increased 26.9 percent

HAR also breaks out sales figures for existing single-family homes. In March, existing home sales edged up by 0.7 percent to 4,940 units. The average price rose 6.1 percent to $440,329, and the median sales price increased 3.6 percent to $335,000.

For HAR’s Monthly Activity Snapshot (MAS) of the March 2025 trends, please CLICK HERE to access a downloadable PDF file.

Townhome/Condominium Update

Townhome and condominium sales trailed 2024’s volume for the second month in a row. Sales declined 21.9 percent year-over-year with 397 units sold versus 508 last March. The average price was down 1.5 percent to $272,144, and the median price fell 4.0 percent to $225,500.

The inventory of townhomes and condominiums grew to a 6.9-months supply compared to 4.2-months a year earlier. It was the highest level recorded since November 2011 when there was a 7.4-months supply.

Houston Real Estate Highlights in March

Single-family home sales increased 2.6 percent year-over-year;
Days on Market (DOM) for single-family homes went from 55 to 62 days;
Total property sales were statistically flat with 8,753 units sold;
Total dollar volume increased 5.1% to $3.6 billion;
The single-family median price increased 1.5 percent to $335,000;
The single-family average price rose 3.7 percent to $427,221;
Single-family home months of inventory registered a 4.6-months supply, up from 3.4 months last March.
Townhome/condominium sales declined 21.9 percent year-over-year. The median price declined 4.0 percent to $225,500, and the average price was down 1.5 percent to $272,144.

Nicholas Joel Realty Group
Proudly partnering with Jane Byrd Properties International, we’re your trusted Houston Heights real estate experts. Joel Eronko, Realtor®

***Article Credit: Houston Association of Realtors