The Houston real estate market is entering an interesting phase in 2026 — one that feels very different from the fast-paced frenzy of the past few years. Mortgage rates are shifting, inventory is changing, and both buyers and sellers now have new opportunities if they understand how to navigate today’s environment.
Here’s what I’m seeing right now in the Houston market and how you can prepare whether you’re buying or selling.
Mortgage Rates: What’s Happening Right Now
Mortgage rates have started moving in a more favorable direction for buyers. As of early 2026, many borrowers are seeing 30-year fixed-rate offers in the low-6% range (exact pricing varies by lender, credit profile, down payment, and loan type). This is a noticeable improvement compared to periods when rates were closer to or above 7%.
That said, the market is still sensitive to inflation data and Federal Reserve policy. Rates may continue to move up and down week-to-week, and even small changes can meaningfully impact monthly affordability.
What this means: buyers who are waiting for dramatically lower rates may not see huge drops immediately — but today’s improving conditions are already opening new opportunities.
What I’m Seeing in the Houston Market
Houston’s real estate market is shifting toward balance — and that’s actually healthy for both buyers and sellers.
1) Inventory is Increasing
In many Houston-area neighborhoods, inventory has been trending upward. More listings mean buyers have more choices, negotiation power is improving, and some homes may take slightly longer to sell compared to the peak seller-market years.
2) Prices Are Stabilizing (Not Crashing)
Overall, prices in Houston appear to be stabilizing rather than swinging dramatically. Some neighborhoods are seeing modest changes depending on location, condition, and pricing strategy. Buyers are more selective, and homes that are priced correctly and marketed well continue to attract solid interest.
3) The Market Feels More Balanced
After years of intense seller advantage, Houston is moving toward a more balanced environment where buyers regain leverage, sellers need stronger pricing strategies, and thoughtful marketing matters more than ever.
How Buyers Should Prepare Right Now
If you’re considering buying in Houston, this market may actually work in your favor — especially if you approach it with a plan.
- Get pre-approved early: Rates fluctuate, and being pre-approved helps you act quickly when the right home comes along.
- Focus on payment, not just price: Small changes in interest rate can shift monthly costs more than most people expect.
- Use negotiation opportunities: With more inventory, buyers may be able to negotiate closing costs, repairs, seller concessions, or even a temporary rate buy-down.
- Think long-term: Waiting for “perfect” rates can mean missing the right home. Many buyers plan to refinance later if rates drop further.
How Sellers Should Prepare
The biggest shift sellers need to understand: pricing strategy matters again. Buyers are informed and comparison-focused — and they will move on quickly if a home feels overpriced.
- Price realistically: Correct pricing helps you attract attention early and reduce time on market.
- Invest in presentation: Professional photos, light staging, and strong marketing help your home stand out when buyers have more choices.
- Be open to negotiation: In balanced markets, concessions are more common — and flexibility can help deals close faster.
- Timing still matters: Spring and early summer often bring more activity, and improving rates may bring additional buyers off the sidelines.
My Outlook for Houston Real Estate
Houston’s market isn’t stopping — it’s evolving. We’re moving into a healthier environment where mortgage rates are improving, buyers regain confidence, and sellers can still achieve strong outcomes with the right strategy.
For many people who paused their plans during higher-rate periods, 2026 may be the window where opportunity returns.
Thinking About Buying or Selling in Houston?
Every neighborhood behaves differently — and strategy matters more than ever in today’s shifting market. If you’re considering making a move, I’d be happy to help you understand your options and build a plan that fits your goals.
Contact me today for a personalized market analysis.
