Houston Market Grows Hotter as Inventory and Prices Surge

HOUSTON, TX – May 12th, 2025 – The Houston housing market accelerated this week as new listings surged by 16.81%, closings rose over 13%, and the median sold price jumped 4.71% to reach $360,740. Despite a noticeable rise in mortgage rates, buyers remain highly active, and inventory is being met with strong demand.

Market Highlights

• New Listings: 6,011 (⬆ 16.81%)

• Pending Sales: 4,217 (⬆ 2.88%)

• Closings: 3,632 (⬆ 13.25%)

• Median Sold Price: $360,740 (⬆ 4.71%)

• Days on Market (DOM): 58 (⬇ 0.64%)

• 30-Year Mortgage Rate: 6.90% (⬆ 10.40%)

Single-Family Home Market Performance

The Houston market gained significant traction heading into May, with over 6,000 new listings, the highest weekly count in weeks. This fresh inventory was met with strong buyer response as closings jumped 13.25%, and pending sales increased by 2.88%, showing that serious buyers are still making moves despite rising mortgage rates.

The median sold price rose to $360,740, nearly a 5% increase in one week, indicating sellers are regaining leverage. At the same time, days on market held steady at 58, meaning well-priced homes are still selling efficiently.

Mortgage Rates and Market Implications

The 30-year fixed mortgage rate rose to 6.90%, a 10.40% increase from the week prior — one of the most significant weekly rate shifts in recent months. While rising rates usually slow momentum, buyer demand held firm, suggesting that urgency may be growing as buyers try to lock in terms before further increases.

Alaina’s Pro Tip of the Week

With listings and closings up and prices rising nearly 5%, the Houston market is heating up. Even with mortgage rates climbing to 6.90%, buyers are still active. Get pre-approved and act quickly. Sellers should take advantage of strong demand and rising prices while momentum is high.

Market Outlook

As we move further into the spring market, strong demand paired with increasing inventory and rising prices will likely continue to drive competition. Sellers who list early can capitalize on buyer urgency. Buyers should remain alert, especially as rates shift quickly.

Looking Ahead

Whether you're looking to buy or sell, keeping up with Houston's fast-moving trends will help you stay one step ahead. With inventory up, prices rising, and rates fluctuating, now is the time for informed decisions and confident moves.

📲 For expert insights and personalized guidance, contact Alaina Segovia today.
📞 (832) 921-0506 | 🌐 https://www.alainasegovia.com

✨ Stay tuned for next week’s update, and follow for the latest in Houston real estate!