The Houston Association of REALTORS released its September 2026 housing market update on October 14. The short version: homebuying activity eased as mortgage rates climbed above 7%, but prices remained steady and buyers had more homes to choose from.
The September numbers
Single-family home sales totaled 7,030, down 5.7% from a year earlier. Active listings reached 40,192, up 6.3%, and inventory expanded from 5.1 months to 5.5 months. Nationwide, inventory is about 4.8 months, according to the National Association of REALTORS.
Homes spent an average of 58 days on the market, compared with 56 days in September 2025. Pending sales declined 11.6% to 6,789. Across all property types, Houston recorded 8,181 sales, down 6.4%, and $3.45 billion in dollar volume, down 2.1%. Active listings of all types rose 5.0% to 62,002.
Prices and monthly payments
The average single-family price edged up 0.7% to $421,311. The median price was essentially unchanged at $325,000, compared with $325,990 a year ago. Conventional 30-year mortgage rates averaged 6.86% in September according to Freddie Mac, up from 6.35% a year earlier. For a median-priced home with 20% down, the monthly principal and interest payment rose from $1,622.29 to $1,705.41.
Rates continued to climb into early October, reaching 7.40% in the second week of the month.
Higher mortgage rates are making buyers look more closely at what they can comfortably afford. People are taking a little more time, weighing their options and focusing on long-term affordability. Stable prices and a broad selection of homes are helping keep opportunities within reach.
Theresa Hill, HAR Chair with Compass RE Texas, LLC - Houston, in the September 2026 HAR housing market update.
Single-family sales by price range
HAR broke September single-family closings out this way:
- $1 to $99,999: increased 3.7% (111 transactions)
- $100,000 to $149,999: increased 5.6% (188 transactions)
- $150,000 to $249,999: decreased 8.4% (1,359 transactions)
- $250,000 to $499,999: decreased 5.7% (3,878 transactions)
- $500,000 to $999,999: increased 0.6% (1,189 transactions)
- $1M and above: decreased 8.2% (304 transactions)
Existing homes, townhomes, and condos
Existing single-family home sales held steady compared to last September with 5,062 closings. The average price declined 1.1% to $427,110, while the median price was unchanged at $325,000.
Townhome and condominium sales declined 21.0% to 323 properties. The average sales price decreased 4.6% to $261,052, and the median fell 9.1% to $209,000. Active listings rose 6.9% to 3,609, and inventory increased from 8.0 months to 9.3 months. Pending sales declined 15.9% to 370.
What this means if you are buying or selling
If you are buying in Houston or Katy, higher rates mean the monthly payment needs to fit comfortably. You also have more inventory and a bit more time than a year ago. Stable prices and a broad selection of homes keep options open. Get clear on your budget and stay ready, but take the time to find the right fit.
If you are selling, prices have held steady. With more homes on the market and buyers taking longer to decide, pricing correctly and presenting the home well matter more. Homes that are priced right are still moving.
Figures in this post come from the Houston Association of REALTORS September 2026 Housing Market Update. Read the full report on HAR's MLS market update page.