Houston Housing Market Update – September 2025: Balanced, More Inventory & New Opportunities

If you’re following the Houston real estate market—whether buying, selling or investing—September 2025 delivered some interesting data points. According to HAR’s September update, the market is entering a more balanced phase, with moderating prices, expanding inventory, and strong buyer demand. This means it’s not the fast‐paced frenzy of recent years, but it’s also not a slump—it’s something in between, which offers strategy opportunities for everyone. HAR+1

Let’s dig into what the numbers reveal for the Greater Houston area and then look at what that means for you in the Cypress / Houston region.

Market Overview – Key Metrics

Here are the headline numbers from the HAR report for September 2025: HAR+1

• Single‐family home sales rose by 5.3% year-over-year (7,399 homes sold compared to 7,025 last year). HAR+1

• Median price for single-family homes: $327,000, down 2.1% from a year ago. HAR+1

• Average price: $421,655, up 2.0% from last year. HAR+1

• Average price per square foot: $175, slightly below $177 from last year. HAR+1

• Inventory: Active listings for single-family homes were 38,552 (up about 28.5% year-over-year) and months of inventory rose to about 5.2 months (from 4.3 months last year) — a sign of a more balanced market. HAR+1

• Days on market: 55 days (up from 52 last year) for single-family homes. HAR

• Townhomes/condos: Sales up 4.0% year-over-year (414 units vs 398 last year). Median price dropped to $230,000 (down 4.4%), average price dropped to $273,890 (down 4.9%). Active listings for condos/townhomes were up ~31.9%, months of inventory ~8.2. HAR

What This Means: Balance, Not Boom

For Buyers

• More inventory = you have more choices. With higher active listings and rising months of inventory, you aren’t forced into bidding wars in many price ranges.

• Median price is slightly down, making certain price-points (especially entry/mid-markets) more attainable.

• However: days on market are slightly higher; so, you can take a bit more time, but you still should remain prepared (pre-approval, clear budget).

• For condos/townhomes: more inventory and price drops indicate a real opportunity for first-time buyers or budget-conscious buyers willing to shop carefully.

For Sellers

• The market isn’t running away with sellers like in the pandemic-boom days. Pricing accurately and preparing your home are more important than ever.

• Homes that are updated, well-presented and in desirable locations still do well. But those needing heavy updates may face more competition, more days on market, and may need to price more competitively.

• With average price and luxury home sales up slightly, sellers in higher end segments may still find favorable conditions.

For Investors

• The relative cooling in median price plus more inventory means potential value plays, especially in emerging suburbs or needing-update properties.

• But a caution: the market is more balanced, so margins may be tighter; you’ll need to factor in days on market, carry cost, and position the property smartly.

Special Focus: Cypress / West Houston Move-In Audience

If your audience includes folks relocating to the Cypress / NW-Houston / Spring / Tomball areas (such as “ganets” or new residents), here are a few tailored notes:

• With inventory up region-wide, these suburbs may offer more room for negotiation, especially for homes built earlier that may need updates.

• Buyers relocating should still pre‐qualify, understand local taxes, flood zone risks, and property insurance—Houston area still has those cost variables.

• Sellers in these suburbs should highlight neighborhood infrastructure (schools, amenities, community events) and compare their home’s condition relative to newer builds.

• Investors looking in Cypress area might find attractive value in homes that are move-in ready or can be repositioned, given the broader market balancing.

What to Watch Going Forward

• Mortgage interest rates: While they have eased somewhat from peaks, they still impact affordability and monthly payments significantly. HAR+1

• Inventory trends: If inventory continues to expand faster than demand, we might see more price moderation.

• Sub-market behavior: Some neighborhoods will continue to be competitive (particularly well-located, updated homes), while others will see more slack. According to HAR, in fall 2025 older homes needing updates in areas like Cypress, Spring and Tomball are seeing bigger markdowns. HAR

• Buyer behavior: With more choices and less frenzy, buyer patience may increase, which means sellers who move quickly and price competitively may gain advantage.

• Macro factors: Local economy remains strong, but variables such as flood insurance programs, weather/climate risk, and builder activity may have downstream effects. HAR+1

Your Next Steps

• Buyers: Get your pre-approval, define your budget (including taxes, insurance, flood risk if relevant), identify target neighborhoods (especially in Cypress/Spring area) and be ready to act when the right home shows up.

• Sellers: Consult with your agent early, get your home in top showing condition, price it correctly from day one, and consider targeted marketing highlighting lifestyle and neighborhood advantages.

• Investors: Run the numbers carefully—days on market, potential renovation cost, carrying cost—and look for homes either in desirable move-in ready condition or where value-add enhancements make sense.

Conclusion

The Houston housing market in September 2025 is no longer in “seller’s extreme market” mode, nor is it in “buyer’s collapse” mode—it’s in a balanced state. That balance creates opportunity for thoughtful buyers, prepared sellers and smart investors alike. With the median price edging down slightly, active listings growing and days on market increasing modestly, the environment is more relaxed—but preparation, pricing and strategy still matter.

If you’re planning a move in or out of Cypress, the Greater Houston area, or exploring investment opportunities, now is a good time to partner with a seasoned local expert who knows the nuances of schools, flood zones, builders, resale value and neighborhood trends.

Written by Gabrielle Strout, Compass Real Estate – Leading Luxury Agent in Houston & Cypress, TX. Your trusted partner for relocation, luxury sales, and 5-star client experiences.