Housing Market & Real Estate Update: Slower Pace, Rates Ease
Houston, TX – February 26, 2026 – Prices hovered near the low-$300Ks while homes took longer to sell; mortgage rates eased and new construction continued to expand lower-priced …
Top takeaways
- January’s median sale price was about $324K, with a 72-day median time to sell.
- Sales cooled year over year (1,096 homes sold in January).
- Freddie Mac’s 30-year fixed average was 6.01% for the week ending Feb. 19.
Market snapshot
Houston’s market is showing a familiar mix: pricing that’s holding up, paired with a slower pace. Redfin’s housing-market data for January points to a median sale price up 3.2% year over year, but with longer time on market—an important signal that buyers may have more time to compare options and negotiate.
Realtor.com’s search data reinforces the “more choices, slower churn” feel. It shows 16,760 active listings, a $315K median list price, and 71 days on market on average. Together, these indicators suggest inventory is present and competition can vary sharply by neighborhood, condition, and price band—even when broad headline prices look steady.
New construction
New builds remain part of the affordability conversation, especially for buyers balancing monthly payments against rate movements. One entry-level signal highlighted locally: KB Home is marketing its Sweetgrass Village community near Crosby with starting prices in the mid-$200Ks. That kind of pricing can widen the range of options for budget-focused buyers, while also adding competitive pressure on some resale listings.
What to watch next
- Buyers: Compare new-build incentives against resale negotiation room as rates shift.
- Sellers: Plan for longer timelines, and monitor competing price reductions closely.
One practical question going into the next stretch: is momentum being driven more by new listings, more reductions, or quicker contracts? Watching those signals can help clarify whether the slower pace is stabilizing—or still unfolding.