Houston Real Estate Market Update – What Buyers and Sellers Need to Know (May 2025)
As "The Pearland Real Estate Expert," I'm constantly analyzing our local market to provide you with actionable insights. Today, let's dive into what's happening right now in Houston and the surrounding areas, including Pearland, Friendswood, and Alvin.
What's Happening in the Houston Real Estate Market?
Home Prices Are Rising Moderately
The median home price in Greater Houston increased slightly to $345,000 in April 2025, up from $335,000 at the end of 2024. According to the Houston Association of Realtors (HAR), home prices grew 1% year-over-year to a median price of $337,400 in the first quarter of 2025. This modest rise indicates a steady but controlled growth.
Supply and Demand – Balanced Yet Competitive
The number of homes for sale has risen significantly, yet demand remains strong. Homes sold faster this spring, with the average days on the market dropping from 52 days in December 2024 to just 42 days in April 2025. This reduction highlights robust buyer activity and quicker property turnover.
Affordability Remains Stable
Despite rising prices, Houston continues to offer stable affordability. Currently, around 40% of households in the area can afford a median-priced home, similar to last year. Buyers now require an average household income of about $95,200 annually to purchase a typical home.
Rental Market – A Great Opportunity for Investors
Single-family rental homes have seen a noticeable increase in monthly rents, rising by 3.8% year-over-year. The median rental price in Houston is now approximately $2,075 per month, making this a promising market for real estate investors.
Strategic Recommendations for Buyers, Sellers, and Investors
- Sellers: This is a favorable market to sell, with rising home prices and shorter listing periods.
- Buyers: Take advantage of the current balance in affordability, but be mindful of mortgage rates, which have slightly increased to an average of 6.83%.
- Investors: With increasing rents, investing in single-family rental properties is a smart move in this market.
The Bottom Line
The Houston real estate market remains resilient and balanced, presenting excellent opportunities whether you're buying, selling, or investing. As always, staying informed is key to maximizing your real estate goals.
Ready to explore your next move in the Pearland area? Contact me today—I’m here to guide you every step of the way.
Thinking of Renting, Buying, or Investing in Houston Real Estate? Whether you're looking to lease your property, find the perfect rental, or explore buying your first home, I’m here to guide you every step of the way. Call me today to talk about your next move in the Greater Houston market.
📞 Danny Frank, The Pearland Real Estate Expert
📍 Serving Pearland, Friendswood, Alvin & Greater Houston
Comments(2)