The Greater Houston real estate market advanced steadily in May 2025, reflecting notable increases in sales volume, active listings, and inventory levels. While prices edged slightly lower, the market’s overall performance suggests a shift toward greater balance—particularly for prospective buyers. For those active in Montgomery County or North Houston, these developments are worth close attention.
Houston Home Sales Activity Strengthened
According to the latest update from the Houston Association of REALTORS®, as reported by HAR-TV, single-family home sales rose by 6.8% when compared to the same month last year. This figure represents a meaningful increase in transactional activity and may indicate growing consumer confidence or improved affordability in certain sectors of the market.
Interestingly, this uptick in sales came alongside a modest decline in pricing metrics. The average price of a single-family home decreased by 0.7%, landing at $438,230, while the median price fell by 1.2% to $339,425. In practice, this could signify a market recalibration following several years of upward price pressure. For buyers previously priced out, these shifts may present an entry point worth exploring.
Houston Homes Inventory Reached Benchmark Since 2007
One of the most consequential developments in May was the surge in available listings. Active listings climbed to 37,455, marking a 35% year-over-year increase and representing the highest volume of active homes on the market since September 2007. This is a data point that deserves emphasis. It implies both growing seller confidence and a transition to more normalized market conditions.
The months of inventory metric expanded as well, rising from 3.9 months to 5.2 months. This level is much closer to what housing economists define as a balanced market—neither strongly favoring buyers nor sellers. In such an environment, well-presented homes priced within range are likely to remain competitive, while buyers benefit from increased selection and reduced urgency.
Meanwhile, average days on market increased from 46 to 50, a slight extension that aligns with greater inventory and softer price appreciation. This modest increase gives buyers additional time to conduct due diligence and sellers more reason to fine-tune listing strategies.
Houston TownhomesInventory Climbs Further
Sales of townhomes and condominiums declined by 12.9% in May, continuing a pattern noted in previous months. Inventory for these property types reached a 7.8-month supply, underscoring the slower pace of movement in this category. While townhomes and condos may still appeal to select segments of the market—such as downsizers or investors—the preference for detached homes remains dominant in suburban regions like Montgomery County.
Those considering listing a condo or townhouse in the near term would be well advised to review market data closely and prepare accordingly. Units that are move-in ready and located in desirable areas will likely perform best in this environment.
Montgomery County Housing Market
In Montgomery County, including The Woodlands, Magnolia, and Lake Conroe, the market reflects many of the same regional patterns seen across Greater Houston. Sales are holding firm, and inventory growth is creating opportunities not present in recent years. For buyers, the ability to choose from a wider array of homes & to negotiate with greater leverage is a notable development. For sellers, a return to a more traditional pace of market activity means pricing and presentation matter more than ever.
At Southern Luxury Realty, our team remains focused on helping clients navigate these changes with clarity and precision. Whether you are preparing to purchase your first home, relocating within the county, or evaluating the best time to list your property, we are committed to offering thoughtful advice backed by current market conditions.
Stay Informed, Act Strategically
The full May 2025 update is available from HAR-TV on YouTube and through the Houston Association of REALTORS® newsroom. We recommend reviewing their monthly reports if you are planning any major real estate moves this year.
If you have questions about what these numbers mean for your specific situation or if you would like to discuss available opportunities in the market please contact us. Our expertise is built on careful research, local knowledge, and a disciplined approach to service.