If you are trying to decide whether to buy or sell a home in Greater Houston right now, the useful question is not "is the market crashing?" It is what the latest Houston Association of Realtors (HAR) Multiple Listing Service numbers say about prices, inventory, and how long homes sit before they close. This report walks through HAR's August 2026 Housing Market Update (released September 9, 2026), HAR's second-quarter 2026 Housing and Rental Affordability Report, and statewide context from the Texas Real Estate Research Center, checked on October 15, 2026. It is a snapshot of published data, not a prediction of where prices will go next.
TL;DR
- In August 2026, HAR reported 7,100 single-family closings in Greater Houston, down 11.5% from August 2025, while the single-family median price was $330,000 (down 1.5%) and the average price was $426,760 (up 1.2%).
- Active single-family listings were 38,947, and months of inventory held at 5.3, above the nationwide 4.6 months of supply HAR cited from the National Association of Realtors.
- Homes spent an average of 54 days on the market, up from 52 a year earlier; pending single-family contracts were 7,939, down 3.5%.
- HAR's second-quarter affordability report found 40% of Houston-area households could afford a median-priced home, up from 36% a year earlier.
- Use metro stats as context, then price a specific address with taxes, insurance, and condition. Tools like search and home value help you move from headlines to a property.
What "balanced" means in the August 2026 HAR update
HAR described August as a more balanced market: sales were slower than a year ago, inventory stayed elevated, and prices were relatively steady. Single-family sales fell 11.5% year over year to 7,100 closings. Across all property types, total sales were 8,362 transactions (down 10.2%), with about $3.5 billion in dollar volume (down 8.8%). Active listings across all property categories rose 1.0% to 60,390.
That mix (fewer closings, more MLS choices, and median prices close to last year) is what local reports mean by balance. Buyers have more homes to compare; sellers compete against larger inventory than in the tight pandemic years.
HAR also placed the year in a longer frame: single-family sales over the past 12 months totaled 88,565, ahead of the 86,999 closed in all of 2019, the last pre-pandemic "normal" year HAR references. Over the same comparison, HAR cited U.S. single-family sales running 20.1% below 2019.
Prices: median down slightly, average up slightly
For August 2026 single-family homes, HAR reported:
- Median price: $330,000, down 1.5% (about $5,000) from August 2025
- Average price: $426,760, up 1.2%
A median that eases while the average rises usually means the mix of closed homes shifted. HAR's August price-band breakout shows declines in most mid and upper bands, with a year-over-year increase only under $100,000 (110 sales, up 11.1%). Most closings were still in the $250,000 to $499,999 range (3,949 sales, down 13.7%).
HAR separately reports existing single-family sales (excluding new construction in that cut): 5,206 closings in August, down 5.3%, with a median of $330,000 (down 2.9%) and an average of $433,016 (down 1.0%).
Townhomes and condominiums were quieter on volume and softer on the median. HAR said August townhome/condo sales were unchanged year over year at 405 units. The median fell 7.1% to $195,000, the average fell 1.5% to $245,692, active listings rose 3.1% to 3,504, and months of inventory rose from 8.1 to 8.8.
Inventory and days on market
Supply is the other half of the story. HAR reported 38,947 active single-family listings in August, up 0.5% from a year earlier, with inventory flat at a 5.3-month supply. Nationwide, HAR cited 4.6 months of inventory from the National Association of Realtors. In plain terms, Greater Houston buyers had a wider selection than the national average HAR used for comparison.
Homes also took a little longer to go under contract through closing. Days on market for single-family homes averaged 54 in August 2026, up from 52 in August 2025. Pending single-family sales were 7,939, down 3.5%. That is still a large pipeline of signed contracts, just cooler than last August.
A common rule of thumb is that roughly four to six months of inventory is a balanced market, with lower supply favoring sellers and higher supply favoring buyers. HAR's 5.3-month single-family figure sits in that middle band, which matches the "more options, more time" language in the August release.
Affordability improved in the second quarter; rates have moved since
HAR's Housing and Rental Affordability Report for the second quarter of 2026 (the latest quarterly cut summarized on HARConnect when this article was checked) said 40% of Greater Houston households could afford a median-priced home, up from 36% in the second quarter of 2025. In that quarter, HAR reported:
- Metro median home price: $345,200, down 1.2% year over year
- Average 30-year fixed mortgage rate used in the report: 6.41%, down from 6.79% a year earlier
- Typical monthly payment including principal, taxes, and insurance: $2,550, down from $2,650
- Minimum annual household income to buy the median-priced home: $102,000, down 3.8% from $106,000
On the rental side, HAR said about 45% of Houston-area households could afford the average single-family lease payment, compared with 46% a year earlier, while the median lease price rose 2.4% to $2,150.
Those Q2 figures are useful history, not today's quote. HAR's August market update itself noted the average 30-year fixed rate at 6.67% versus 6.59% a year earlier (Freddie Mac). As of October 8, 2026, Freddie Mac's Primary Mortgage Market Survey reported the U.S. 30-year fixed average at 7.40%, up from 7.28% the prior week and from 6.30% a year earlier. Payment math for any offer you write should use a live lender quote, not last quarter's index.
HAR also noted that Houston affordability had improved on a year-over-year basis in 22 of the past 25 months as of the August update, outpacing the national pattern HAR cited (improvement in 15 of the past 24 months).
How Texas A&M's research center frames the same season
The Texas Real Estate Research Center September 2026 Texas Housing Insight (covering July 2026 data, with some preliminary August notes) described statewide sales rising 2.2% year over year in July to 32,306 closings, a statewide median sales price of $339,000 (unchanged from a year earlier), and home-price declines that were still present statewide but moderating. For Houston specifically, the Center wrote that July marked the first month in the past 12 months in which home prices did not decline on a year-over-year basis.
The Center also flagged higher financing costs as the main near-term headwind after mortgage rates moved above 7% ahead of the Federal Reserve's 25-basis-point increase on September 16, 2026. That statewide research view lines up with the HAR story for Houston: prices under less downward pressure than earlier in the cycle, while borrowing costs remain the constraint many buyers feel first.
HAR MLS stats and Texas Real Estate Research Center tables are not always identical, so treat them as complementary context rather than mixing them without checking definitions.
What this means if you are buying
- Shop the inventory that actually fits your payment. A 5.3-month supply means more listings to compare, not that every neighborhood is a buyer's market. Start with a full ownership budget (mortgage, taxes, insurance, HOA), then filter homes for sale.
- Do not read the metro median as your street. $330,000 is the August single-family midpoint for Greater Houston. Inner-loop, master-planned, and luxury pockets can sit far above or below that figure.
- Build time into your search. At about 54 days on market for closed homes, rushed waivers of inspection or option periods are a strategy choice, not a requirement of "the market."
- Get a current rate quote. Q2 affordability gains used lower rates than Freddie Mac's early-October survey. Re-run affordability when your lender quotes you.
- Still verify flood, taxes, and condition on the address. Market averages do not replace flood-zone checks, tax estimates, or inspections. For the bigger "should I buy here?" question, see Is Houston a good place to buy a home?.
What this means if you are selling
- Price against today's comps, not 2022. With inventory near 5.3 months and days on market slightly higher, overpricing is more likely to produce stale days on market than a bidding war.
- Expect buyers to compare more homes. Active single-family listings near 39,000 mean your listing competes on condition, photos, and terms as much as on asking price.
- Watch pending and days on market together. Soft pending counts and longer market times are early signals to adjust price or presentation before a listing goes cold.
- Use a local CMA. Metro medians are a headline. A comparative market analysis for your subdivision is the working number. Start with home value and a conversation with an agent who knows your pocket.
How to read the next HAR release
HAR publishes a Monthly Housing Update tied to MLS activity for Greater Houston. When the next release lands on HAR's MLS / market update page, look at the same four lines every time:
- Single-family sales count and year-over-year change
- Median and average single-family prices
- Active listings and months of inventory
- Days on market and pending sales
Then open the quarterly Housing and Rental Affordability Report when HAR posts it (typically February, May, August, and November) so you are not mixing a payment index from one quarter with sales stats from another month. For statewide and metro research commentary, the Texas Real Estate Research Center's Texas Housing Insight series is a solid secondary source.
FAQ
Is the Houston housing market crashing in 2026?
HAR's August 2026 data do not describe a crash. Single-family median prices were down 1.5% year over year, inventory was 5.3 months, and trailing twelve-month sales still exceeded full-year 2019 volume. Sales volume was lower than August 2025, which is a cooler market, not a collapse in the published figures.
What is a good months-of-inventory number in Houston?
HAR reported 5.3 months of single-family inventory in August 2026. Roughly four to six months is often treated as balanced. Lower inventory tends to favor sellers; higher inventory tends to favor buyers. Always pair that metro figure with neighborhood comps.
Why did the average price rise while the median fell?
Different mixes of closed homes. The median is the midpoint sale; the average is pulled by high-priced closings. HAR reported a $330,000 median (down 1.5%) and a $426,760 average (up 1.2%) for August single-family sales.
How long do Houston homes take to sell right now?
HAR said single-family days on market averaged 54 in August 2026, compared with 52 in August 2025. Individual listings vary widely by price, condition, and location.
Did affordability get better for Houston buyers?
In the second quarter of 2026, HAR reported that 40% of Houston-area households could afford a median-priced home, up from 36% a year earlier, helped by a lower reported mortgage rate and a slightly lower metro median in that quarter. Mortgage rates later moved higher in Freddie Mac's national survey, so re-check with a current quote.
Should I wait for prices to drop more before buying?
That is a personal timing call, not something metro averages can answer. If you need a home, can afford the full monthly cost, and the property clears inspection and flood review, waiting for a headline median to move another percent can cost more in rent and rate risk than it saves. If your plans or budget are unstable, waiting can still be right.
Where do these numbers come from?
Primary figures in this article come from HAR's August 2026 Housing Market Update and HAR's Q2 2026 Housing and Rental Affordability Report (via HAR's published summaries), Freddie Mac's Primary Mortgage Market Survey as of October 8, 2026, and the Texas Real Estate Research Center's September 2026 Texas Housing Insight.
One last thing
Greater Houston's August 2026 HAR snapshot is balanced and inventory-rich: softer sales, a slightly lower median, and a slightly higher average. Use those metro lines for orientation, then decide on a specific address with current financing, taxes, insurance, and inspection facts. For help translating the latest HAR release into a plan, contact Vital Realty.