As we move into February 2025, Houston’s real estate market continues to evolve, shaped by economic shifts, interest rate adjustments, and changing buyer behaviors. Whether you’re a homebuyer, seller, or investor, understanding the current market landscape is essential to making informed decisions.
Albert Cantu, the #1 real estate agent in Houston, TX, has been closely analyzing trends, helping clients navigate the market with confidence. In this report, we’ll explore home prices, inventory levels, buyer demand, and expert predictions to give you a full picture of Houston’s real estate scene this month.
Houston TX Real Estate and Homes For Sale
Houston TX Real Estate Market Overview – February 2025
Houston has long been one of the most dynamic real estate markets in the country, known for its affordability, job opportunities, and vibrant economy. This February, the market is experiencing a slight cooling compared to the high-paced activity of 2024, but home values remain strong, and demand is steady.
Key February 2025 Houston Real Estate Market Stats:
- Median home price: $390,000 (up 3.2% YoY)
- Average days on market (DOM): 42 days (up from 38 in January 2025)
- Active listings: 12,500 (slightly higher than last year)
- Mortgage rates: Averaging around 6.1% for a 30-year fixed mortgage
- Inventory level: 3.8 months supply (still a seller’s market, but approaching balance)
- Rental rates: Up 5% YoY, making homeownership increasingly attractive
Albert Cantu notes, “While the market has cooled slightly compared to the frenzy of 2023-2024, we’re still seeing strong demand, especially in desirable neighborhoods. The key for buyers and sellers is understanding how interest rates and inventory are shifting.”
Houston Home Prices & Appreciation Trends
Houston home prices remain on an upward trajectory, though the rapid increases seen in the last few years have moderated.
- Single-family homes: Prices have risen by 3.2% year-over-year, with a median price of $390,000.
- Luxury market ($1M+): Holding steady, with Houston’s high-end real estate market remaining competitive.
- Townhomes & Condos: Prices are up by 4.5%, as affordability concerns push buyers towards lower-cost housing options.
Albert Cantu explains, “The spring season will bring increased buyer activity, so now is a great time to list your home if you’re considering selling. Prices are stabilizing, but demand remains high in the right locations.”
Neighborhood Breakdown – Best Performing Areas in February 2025
Different neighborhoods in Houston are experiencing varied trends, with some areas seeing rising demand while others level off.
Hot Houston Neighborhoods to Watch in February 2025:
- The Heights – Median Price: $685,000
- Continues to be one of the most sought-after locations, with strong demand for historic homes and new developments.
- Home prices are up 5.1% YoY, making it a seller’s market.
- River Oaks – Median Price: $1.8M
- Houston’s luxury real estate hub is holding strong, with limited inventory driving competition.
- High-end properties are still moving quickly, especially modern homes with high-end amenities.
- Cypress – Median Price: $420,000
- Suburban living remains incredibly popular, with good schools and new construction driving sales.
- Prices have climbed by 4.3% YoY, and demand continues to outpace supply.
- Katy – Median Price: $390,000
- A favorite for families and first-time homebuyers, Katy offers affordable housing and a strong community feel.
- New developments are expanding inventory, helping keep prices from rising too fast.
- Montrose – Median Price: $725,000
- Known for its vibrant lifestyle and trendy urban feel, Montrose is still a strong investment.
- Prices have risen 6% YoY, making it an attractive area for sellers.
Houston’s Housing Inventory & Buyer Demand in February 2025
Houston’s housing inventory has increased slightly, sitting at 3.8 months of supply. While still a seller’s market, it’s less competitive than 2024, giving buyers more negotiating power.
What This Means for Buyers:
✅ More options: With rising inventory, buyers aren’t facing as many bidding wars.
✅ Lower pressure: Homes are staying on the market a bit longer, allowing for more time to decide.
✅ Opportunity for negotiation: Buyers may secure better deals, especially on homes that have been listed for over 45 days.
What This Means for Sellers:
✅ Pricing strategy matters: Overpricing could lead to longer listing times.
✅ Move-in ready homes sell faster: Buyers prefer homes that require little work.
✅ Spring demand is coming: Listings priced right in February will benefit from increased spring activity.
Albert Cantu suggests, “If you’re a seller, make sure your home is priced competitively. Overpricing could lead to extended days on market, while pricing it right from the start will attract motivated buyers.”
Mortgage Rates & Affordability – What to Expect
One of the biggest factors influencing Houston’s real estate market in February 2025 is mortgage rates.
- Current mortgage rates: 6.1% for a 30-year fixed loan
- 15-year mortgage rates: 5.5%
- FHA & VA loans: Still attractive options for first-time buyers
With rates higher than they were in early 2022 but lower than 2023 peaks, affordability remains a concern for some buyers.
However, Houston is still more affordable than many major U.S. metros, making it an attractive market for both local and out-of-state buyers.
Real Estate Predictions for Spring 2025
Looking ahead, Houston’s real estate market is expected to pick up as we move into spring.
Albert Cantu predicts:
- Increased buyer activity in March & April, especially for move-in-ready homes.
- Stable home prices, with modest appreciation through mid-2025.
- Sellers should list sooner rather than later to capitalize on early spring demand.
- Investors are still buying, particularly in rental-friendly areas.
Albert adds, “Houston remains a great city to buy and sell real estate. If you’re thinking about making a move, now is the time to develop a smart strategy based on market conditions.”
Final Thoughts: Is Now the Right Time to Buy or Sell in Houston?
- If you’re a buyer → Now is a great time to enter the market with slightly lower competition and more inventory.
- If you’re a seller → The spring market is coming, making February the perfect time to prepare your home and list it competitively.
Albert Cantu, the #1 real estate agent in Houston, TX, is here to help you navigate the market and make the most of your real estate goals. Whether you’re looking to buy, sell, or invest, his expert insights and market knowledge ensure you get the best deal possible.
Thinking About Buying or Selling in Houston?
👉 Contact Albert Cantu today for a free consultation and expert advice on Houston’s real estate market.
Conclusion
The Houston TX real estate market in February 2025 remains strong, with moderate price growth, increased inventory, and steady demand. Whether you’re looking to buy, sell, or invest, staying informed is key to making the right move.
With Albert Cantu’s guidance, you’ll have a top expert on your side to help you succeed in Houston’s real estate market. Don’t wait—reach out today and start planning your next real estate move!
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