By Mustafa Tunc, Houston Realtor

As we step into 2026, I am seeing the Houston market settle into something we have not had in a while: a more balanced pace. Buyers have more choices and more time to think, and sellers can still do very well when the home is priced and presented correctly.

Below is a clear snapshot of what happened in January and what it means if you are planning a move this year.

1. Market at a Glance: Prices, Inventory, and Time on Market

January showed a market with steady demand and expanding inventory.

• Single family home sales were slightly lower than last year, with 4,999 homes sold compared to 5,047 in January 2025. (Source: Houston Association of Realtors Monthly Housing Update, January 2026)
• Prices were mixed: the median price declined to $322,045, while the average price increased to $416,722, driven largely by more luxury activity. (Source: Houston Association of Realtors Monthly Housing Update, January 2026)
• Homes took longer to sell, averaging 66 days on market, up from 61 days last year. (Source: Houston Association of Realtors Monthly Housing Update, January 2026)
• Inventory continued to expand. Single family supply rose to 4.7 months, up from 4.2 months a year ago, and active single family listings increased to 34,570. (Source: Houston Association of Realtors Monthly Housing Update, January 2026)

What this tells me: we are not in a frenzy, but we are not stalled either. It is a more normal negotiating environment, and strategy matters more than ever.

2. Buyer and Seller Dynamics

For buyers, the biggest change is choice. More active inventory means you can compare homes, watch price positioning, and negotiate with more confidence than the last few years.

For sellers, it is still a strong market if you do the fundamentals right. With buyers being more selective, homes that are priced correctly and show well are the ones that get activity. Homes that start too high tend to sit, then require price reductions.

If you are selling, my advice is simple: presentation plus pricing wins. If you are buying, patience plus preparation wins.

3. Mortgage Rates and Affordability

Rates have also been more stable, hovering near 6 percent. Freddie Mac reported the 30 year fixed rate at 6.11 percent as of February 5, 2026. (Source: Freddie Mac PMMS)

HAR also highlighted improving affordability. Using Freddie Mac monthly interest rates and assuming 20 percent down on a median priced home, the estimated monthly principal and interest payment in January 2026 was $1,561.26 versus $1,722.81 in January 2025.

That difference matters. It is one of the reasons I am seeing more buyers reenter the market, especially those who paused during the highest rate volatility.

4. Neighborhood and Property Type Notes

Houston is never one market. It is many micro markets.

In general, I am seeing solid activity where buyers feel they are getting value and lifestyle: neighborhoods with walkability, strong schools, or easy commuting options. I am also seeing continued interest in suburban areas where buyers can get more space for the money.

If you tell me where you want to live and what matters most to you, I can show you what the numbers look like for that specific area instead of relying on citywide averages.

5. What This Means for You

If you are buying

• More inventory and longer days on market mean you can be more selective.
• You have room to negotiate, especially on homes that have been sitting.

If you are selling

• You can absolutely still sell well in this market, but you need the right price and the right marketing plan from day one.
• The market is rewarding sellers who are realistic and prepared.

Final Thoughts

January 2026 started with a healthier balance. Buyers have more options and affordability has improved, while sellers still have demand when their home is positioned correctly.

If you want, send me your neighborhood or your address, and I will give you a quick, local breakdown with recent comps and a pricing strategy tailored to your situation.

Sources

1. Houston Association of Realtors (HAR) Monthly Housing Update and Monthly Statistics (January 2026): https://www.har.com/content/department/mls (Accessed February 11, 2026)
2. Freddie Mac Primary Mortgage Market Survey (PMMS) (February 5, 2026): https://www.freddiemac.com/pmms (Accessed February 11, 2026)