Houston’s housing market becomes a buyer’s market with a 4.9-month home supply.
HOUSTON — June is Homeownership Month, and we wanted to see what the housing market looks like in Houston. According to the Houston Association of Realtors (HAR), single-family homes now have a 4.9-month supply compared to 3.6 months in spring 2024. That means it’s officially a buyer’s market.
HAR found 40% of Houston-area households could afford a median-priced home in the first quarter of 2025.
“Fewer homes closed last month than in April of ’24. It wasn’t like buyers switched their priorities completely,” said Cottar. So why the slight drop in home closings? We sat down with HAR Chair Shae Cottar to get more insight. “It’s more like buyers just kind of went, ‘Wait a second, with everything going on, let’s just pause to see where these tariffs are going to go,’” said Cottar.
Right now, interest rates are between 6% and 7%, but a June 2025 survey by KB Home found that 83% of Americans still believe homeownership is an important milestone.
“At the end of the day, people are still buying homes every day, regardless of the market,” said Dante Pickett.
Real estate broker and agent Anthony Enih is helping Pickett buy his first home, which is currently under construction.
“New construction homes have so many different incentives. They have different interest rate programs,” said Enih.
Cottar said one strategy includes asking whether a mortgage is an FHA loan.
“Because if it is, that buyer might be able to assume that 3.5% or 4% mortgage rate if they can qualify,” he said. Buyers can also negotiate to have sellers reduce the rate. “You can buy a home and have your interest rate reduced for the first three years, up to 3%.”
“We were able to qualify for more than what we maybe thought we could,” said Pickett. While that’s great, he said buying a home is a thorough process. “You have to know your situation, your financial history, your background,” he said.
Finding the right real estate agent can act as a shock absorber.
“You’re looking at how many years they’ve been active, whether they’re doing this full-time,” said Enih.
Buyers can get a resale home with an inherited rate or a new home with a potentially fluctuating rate after appraisal. However, there are options for tax relief.
“You get a break with the homestead tax exemption, which allows homeowners a discount on their taxes,” said Enih.
Enih said builders like KB Home offer new home perks. “You get long, 10-year warranties on some components of the home. Then there are appliances that help you save money on electricity bills.”
Buying new lots and building from scratch is typically more expensive than buying inventory homes, homes already under construction.
“While that home is nearing completion, if nobody’s bought it yet, we’re able to get an even better discount,” said Enih.
Owning a home is a big responsibility. “You’re not in an environment where someone else takes care of major expenses and repairs,” Enih added.
However, Pickett said the long-term benefits outweigh the challenges. “That was big for us—being able to secure something to pass down to the next generation.” His family moves into their new home in late June.
“Would you say the American dream of owning your first home is still attainable?” Ugochi asked.
“It is still attainable for a lot of people. You just need the right people on your side,” said Enih. “It’s always important to be careful who you pick as your real estate agent, because if you pick the wrong person, you can have a very horrible experience.”