Record Buyer Choice. Steady Demand. More Room to Compare.
Houston buyers had something in July they hadn't had before: more single-family homes to choose from than HAR had ever recorded. Active single-family listings reached 40,750 — setting a record — yet buyers didn't disappear. Sales increased, pending contracts rose, and prices held steady.
Market Snapshot
Homes Sold
Single-family closings
Median Sales Price
Up 0.6% year over year
Inventory
Approaching balanced market
Days on Market
Avg. days; 50 days one year prior
Active Listings
Highest ever recorded by HAR
Across all property types, Houston recorded 9,669 transactions, while total dollar volume reached approximately $4.1 billion.
The Big July Story: Choice
Active single-family listings reached 40,750 homes — the highest level ever recorded by HAR, up 3.4% from July 2025.
Record Inventory
5.5 months of supply with homes averaging 53 days on market, compared with 50 days one year earlier.
Sales Still Increased
Single-family sales rose 1.6% to 8,340 closings. Pending sales increased 2.6% to 8,215.
Prices Held Steady
Median price edged up just 0.6% to $340,000, while the average increased 1.9% to $440,816.
Mortgage Rates & Affordability
Rate Context
The average 30-year fixed mortgage rate cited in HAR's July report was 6.54%, compared with 6.72% one year earlier.
HAR estimated that a buyer purchasing a median-priced Houston home with a 20% down payment would save more than $250 annually in principal and interest compared with July 2025.
Houston affordability had improved year over year in 21 of the previous 24 months.
The Complete Housing Payment
Qualifying for a mortgage and comfortably affording a home aren't necessarily the same thing. The complete housing payment can include:
- Principal and interest
- Property taxes
- Homeowners insurance
- Flood insurance when applicable
- HOA dues
- MUD or other utility-district charges
The lender's maximum approval isn't automatically the buyer's ideal monthly budget.
What July Meant for Buyers
Record inventory gave July buyers something valuable: options. Instead of assuming every desirable property would immediately produce multiple offers, buyers could more often compare:
Active Listings
More homes across price ranges, condition levels, and locations than at any point in HAR's recorded history.
Total Cost
Price, taxes, insurance, HOA, MUD charges, and monthly payments — not simply the asking price.
New Construction
Completed inventory homes, homes under construction, to-be-built options, multiple builders, and different floor plans.
Negotiating Room
Depending on the property, buyers could have opportunities to negotiate repairs, closing-cost assistance, or other terms.
More choice simply meant buyers could be more deliberate about deciding which home deserved their attention.
More Choices Included New Construction
What Buyers Could Compare
- Completed inventory homes
- Homes under construction
- To-be-built homes
- Multiple builders and floor plans
- Nearby resale properties
Builder Incentives Could Include
- Temporary or permanent rate buydowns
- Closing-cost assistance
- Flex cash or design credits
- Appliance packages or included upgrades
- Lot-premium incentives
An advertised incentive should be investigated — not simply accepted as the value of the deal.
Look Beyond the Headline Incentive
A new-construction comparison should include: price + homesite + options + upgrades + financing + taxes + insurance + HOA + applicable utility-district costs + expected ownership expenses.
New Construction or Resale?
July's expanded inventory made this comparison particularly useful. The useful comparison isn't simply new versus old — it's total cost + condition + location + timeline + monthly payment + long-term fit.
A New Home Might Offer
- Builder warranty
- Energy-efficient construction
- Modern floor plans & newer systems
- Fewer immediate repairs
- Financing incentives
A Resale Home Might Offer
- Mature trees & established landscaping
- Completed fencing & window coverings
- Appliances included
- Established amenities & shorter commutes
- A location difficult to reproduce in newer development
New-Construction Due Diligence Still Matters
A model-home tour shows you the product. It doesn't answer every question about the transaction or community.
Understand the Contract
Builder contracts, deposits, cancellation provisions, estimated completion dates, change-order policies, and warranty coverage can all differ significantly from resale transactions.
Get Independent Inspections
Consider phase inspections when available, a final inspection, and an appropriate warranty inspection — don't rely solely on the builder's process.
Study the Surrounding Community
Future phases, road construction, planned commercial development, school assignments, drainage, flood information, HOA rules, MUD costs, and future competing inventory all matter.
What July Meant for Sellers
Record inventory increased competition for sellers. A buyer considering one resale home could compare it with numerous other resale listings — and, in many suburban communities, new homes with builder incentives.
Pricing Became More Critical
Overpricing became increasingly risky because buyers had enough alternatives to simply move on. The first few weeks on market mattered significantly.
Resale Advantages Still Had Value
Mature landscaping, established trees, completed fencing, window coverings, appliances, finished outdoor spaces, immediate occupancy, and proximity to existing schools and services — these features have real value.
Communication Was Key
The seller's job was to make the value of those advantages easy for the buyer to understand — not assume buyers would discover it on their own.
North Houston Is Not One Housing Market
Houston's 5.5 months of inventory was an important metro statistic — but it didn't mean every North Houston community had exactly 5.5 months of available housing. Conditions could vary significantly among:
Spring · Klein · Tomball
Established corridors with varied price ranges, school demand, and proximity to major employers.
The Woodlands · Conroe · Magnolia
Active builder markets, strong amenity bases, and ongoing master-planned development.
Willis · Montgomery · Humble
Growing communities with differing tax structures, flood considerations, and commute patterns.
New Caney · Porter · Kingwood
Entry-level to mid-range inventory with significant builder activity and infrastructure expansion.
A citywide statistic tells us about Houston. A community-level analysis tells us about the home you're actually considering.
Six Questions Worth Asking
What is the inventory for this price range and property type?
A metro-wide number may look very different from conditions inside a specific community.
What new-construction alternatives are nearby?
A resale buyer should know what builders are offering to the same pool of buyers.
What is the complete cost of the home?
Include taxes, insurance, HOA, and applicable utility-district charges — not simply principal and interest.
What happens after a promotional rate expires?
Know the regular payment before making the decision.
What are the lender's actual terms?
Compare rate, points, fees, APR, and total loan cost rather than relying on an advertised rate alone.
What could affect the property in the future?
Community expansion, roads, commercial development, drainage, schools, taxes, and future inventory can all matter.
What I'm Watching on the Ground
Record Houston inventory tells us buyers had more choices. What matters next is where those choices are located and how they compare. As I tour homes and communities throughout North Houston, these are some of the things I continually watch:
Builder Inventory
How many completed and near-completion homes are available, and which builders are adjusting pace?
Incentives
Are builders emphasizing mortgage rates, closing costs, upgrades, lot incentives, or price adjustments?
Homesites
Which lots remain available, and what premiums are attached to them?
Community Growth
What new phases, amenities, roads, schools, and commercial development are planned nearby?
July Takeaway
July 2026 moved Houston further toward balance while giving buyers record selection.
More homes for sale did not mean buyers stopped buying. It meant buyers had more choices about what to buy — and that changed the dynamic for both sides of the transaction.
Planning a Move to North Houston?
Whether you're relocating to Houston, comparing new construction with resale, or trying to determine which North Houston community fits your plans, we can look beyond the metro headline and evaluate the numbers that apply to your move.
View homes, new construction deals, and available listings: terreldterrell.com
Market information reflects data available for July 2026. Mortgage rates, builder incentives, prices and market conditions can change. This report provides general real estate market information and is not individualized lending, tax, legal, insurance or investment advice. Buyers and sellers should obtain current property-specific information and appropriate professional guidance.
Terrel D. Terrell, REALTOR®
eXp Realty LLC
License # 723700
1 Riverway Dr Ste 1700, Houston, TX 77056
Phone: (281) 701-3413
North Houston Real Estate Market Update – July 2026