Houston Real Estate Market Report Q2 2025

August 29, 2025

Our Q2 2025 data presents a telling snapshot of H-town's real estate activity: while new installations have skyrocketed, active listings and removal patterns suggest a market in transition. In Houston, these sign dynamics reflect broader trends, growing inventory, softened price growth, and increasing buyer power.

 

As we explore these figures alongside Houston’s market indicators from the second quarter, the picture that emerges is one of a more balanced, buyer‑friendly environment, with strategic opportunities for agents, sellers, and buyers alike.


THE DATA

 

WHAT IT MEANS


The data highlights a market in transition for Houston real estate. The increase in new installations (+20.2%) shows agents are actively listing homes, yet the decline in active listings (−15.1%) and rise in average sign duration suggest properties are taking longer to move, reflecting more cautious buyer behavior. At the same time, the sharp uptick in removals (+31.8%) indicates that many listings are either closing successfully or being pulled due to pricing and strategy adjustments. The 50.2% growth in additional services underscores how agents are doubling down on marketing efforts to stay competitive in an environment where buyers have more options and leverage.

 

GENERAL ANALYSIS

Houston has moved toward a buyer’s market: single‑family home supply has risen from 3.6 to 4.9 months year‑over‑year. This increase aligns with more yard‑sign installations and removals, agents are listing frequently, but homes may linger longer or get pulled from the market as buyer activity shifts.

 

While some parts of the market show modest appreciation, others are beginning to soften. Houston is among metros with price declines, with home prices down 2.8% year-over-year to $369,000. This trend mirrors our data showing longer sign durations and increased removals, sellers may be rethinking expectations or strategies.

 

Housing resilience in Houston is rooted in its economic diversity: energy, healthcare, and tech continue to fuel demand. Construction permits in Houston were essentially flat in Q2 2025 compared to Q2 2024, suggesting stable but not oversaturated supply growth. That aligns with our data of steady flow, not frenzied turnover.

 

Our Q2 data for 2025 mirrors Houston’s broader real estate shift toward a more balanced and buyer-leaning market. Agents are active, listing more with boosted marketing, but closings take longer. Key risks remain in affordability and environmental stakes in select neighborhoods. As Houston’s market transitions, we provide direct insight into how listings and sales are evolving. For agents and sellers, being prepared to adapt expectations is crucial. For buyers, this represents a hope of opportunity, with more homes, more leverage, and more time to act.

 

YOUR THOUGHTS?

What are your thoughts on the market? What else would you like to know? Shoot us your thoughts. We plan on sending out these unique market analysis reports regularly to help our agents better grasp what's been going on and more importantly what to expect.