Key Takeaways

Key Takeaways Steady Growth: Houston median home prices at $385,000 show healthy 4.2% annual growth without dangerous speculation Seller's Market Continues: 3.2 months inventory supply and 35-day average market time still favor sellers, but buyers have more negotiating power Cash Buyers Dominate: 28% of Houston purchases are all-cash deals, driven by investors and out-of-state relocations Neighborhood Variation: The Heights ($650K median) and Cypress ($450K median) represent Houston's price spectrum, with opportunities in both premium and value markets

Houston Housing Market Report February 2026: What Uncle Charles Sees in the Numbers

Look, I've been watching Houston's real estate market for decades, and let me tell you — this city never fails to surprise me. While other markets are doing their rollercoaster thing, Houston keeps chugging along like that reliable pickup truck that just won't quit. But the numbers I'm seeing in February 2026 tell a story that goes deeper than the headlines.

I had a homeowner call me last week from Cypress who said, "Uncle Charles, I keep hearing different things about our market. What's really going on?" That's exactly why I'm breaking down these numbers for you — no sugar-coating, just the straight truth about where Houston stands right now.

The Big Picture: Houston's Market Snapshot

Here's where we stand as of February 2026: Houston's median home price is sitting at around $385,000, which represents about a 4.2% increase from last year. Now, before you start celebrating or panicking, let me put this in context. We're seeing steady, sustainable growth — not the crazy spikes that burn people or the crashes that leave folks underwater.

Sales volume is down about 8% compared to February 2025, with approximately 6,800 homes sold in the greater Houston area last month. But here's what those numbers don't tell you — the homes that ARE selling are moving faster. Average days on market dropped to 35 days, down from 42 days this time last year.

Inventory is where things get interesting. We're sitting at about 3.2 months of supply, which is still below the 6-month mark that most folks consider a balanced market. Translation: it's still a seller's market, but not as crazy as it was a couple years back.

What's Driving These Numbers

I've seen this pattern before. Houston's economy is built different than most cities. We've got energy, healthcare, aerospace, and a port that keeps things moving. When other cities sneeze, Houston might get a little sniffle, but we don't usually catch pneumonia.

The energy sector's been stabilizing after some ups and downs, and that matters here more than anywhere else. When energy workers feel secure, they buy homes. When they don't, they hold off. Right now, we're seeing cautious optimism, which translates to steady demand without the feeding frenzy.

Interest rates are playing their part too. We're seeing rates hovering around 6.8% for a 30-year fixed mortgage, which has definitely cooled off some of the buyer enthusiasm we saw when rates were in the 3s. But Houston buyers seem to be adapting — they're just being more selective.

Neighborhood Hotspots: Where the Action Is

Every week at HOMESELL USA, I'm looking at deals across the entire Houston metro, and certain areas keep popping up. Here's what I'm seeing:

The Heights and Near Northside continue to be red-hot. Median prices here are pushing $650,000, and anything decent gets multiple offers. The gentrification train doesn't seem to be slowing down.

Cypress and Northwest Harris County are where young families are landing. Good schools, newer construction, and you can still get a 4-bedroom for under $450,000 in many areas. These neighborhoods are seeing consistent 2-4% annual appreciation.

Sugar Land and Missouri City remain solid choices for move-up buyers. Prices are higher — median around $525,000 — but the resale values hold steady, and the school districts keep demand strong.

Now, here's where my experience with distressed properties at HOMESELL USA gives me a different perspective. I'm also seeing opportunities in areas like Southeast Houston, parts of Pasadena, and some of the older suburbs where investors are picking up properties that need work. These aren't your pretty MLS listings, but there's real value for folks who know what they're doing.

Buyer Demand: Who's Actually Buying

The buyer pool has definitely shifted. First-time buyers are getting squeezed out of many areas — when you need 20% down on a $385,000 house, plus closing costs, plus higher monthly payments due to interest rates, that's a tough hill to climb for someone making $65,000 a year.

I'm seeing more cash buyers than usual, and a lot of them are investors. About 28% of purchases in Houston are all-cash deals right now, compared to 22% last year. Some of these are people who sold in California or New York and are stretching their dollars in Houston. Others are local investors looking for rental properties or fix-and-flips.

Move-up buyers are active but picky. They're not in a rush, and they're negotiating harder than they have in years. The days of waiving inspections and offering $50k over asking are mostly behind us — at least for now.

What This Means for Different Types of Homeowners

If you're thinking of selling: You're still in a good position, but you can't just throw any price on your house and expect multiple offers. Pricing has to be realistic, and the house needs to show well. If your property has issues — and I mean real issues like foundation problems, title complications, or major repairs — you might want to consider a direct sale to avoid the hassle of traditional listings.

If you're looking to buy: You've got more negotiating power than you've had in years, but don't expect sellers to give houses away. Good properties in desirable areas still move fast. Get pre-approved, know your numbers, and be ready to move when the right house comes along.

If you're an investor: This is actually a pretty interesting time. The competition for turnkey rental properties is still fierce, but there are deals to be found in properties that need work or have complications. I see them every day at HOMESELL USA — houses that traditional buyers can't or won't touch, but that make sense for the right investor.

Looking Ahead: What I Expect

Here's my take, based on 20+ years of watching Houston's market: We're in for a period of steady, moderate growth. No fireworks, no crashes, just consistent appreciation in the 3-5% range annually.

Inventory will probably stay tight through 2026, especially for homes under $350,000. New construction is picking up, but it's mostly in the higher price ranges. Affordable housing remains a real challenge.

The wild card is always the broader economy. If we see major job growth in Houston — and there are some promising signs in tech and healthcare — demand could heat up again. If energy takes a hit or if national economic issues spill over, we might see things cool off more than expected.

The Bottom Line

Houston's housing market in February 2026 is doing what Houston markets do best — staying relatively stable while the rest of the country figures things out. Prices are up but not crazy, sales are down but not dead, and opportunities exist for people who know where to look.

Whether you're dealing with a pristine property in River Oaks or a problem house in Acres Homes, the key is understanding what you've got and making realistic decisions based on current market conditions, not what happened two years ago or what you hope might happen next year.

If you're sitting on a property that's giving you headaches — whether it's probate issues, tax problems, needed repairs you can't afford, or just a situation where you need to sell fast — don't assume the traditional market is your only option. Sometimes the best solution is the most direct one.

Give Uncle Charles a call if any of this sounds like your situation. I've seen every kind of property problem Houston can throw at someone, and there's usually a solution that makes sense. No pressure, no judgment — just straight answers about your options in today's market.

Frequently Asked Questions

Frequently Asked Questions

What's the current median home price in Houston?

As of February 2026, Houston's median home price is around $385,000, representing a 4.2% increase from the previous year. This reflects steady, sustainable growth rather than the dramatic spikes we've seen in some other markets.

Is it still a seller's market in Houston?

Yes, but it's more balanced than it was a couple years ago. With 3.2 months of inventory supply and homes selling in an average of 35 days, sellers still have an advantage, but buyers have more negotiating power than they've had recently.

Which Houston neighborhoods are the hottest right now?

The Heights and Near Northside continue to see strong demand with median prices around $650,000. For families, Cypress and Northwest Harris County offer good value under $450,000, while Sugar Land and Missouri City remain solid move-up markets around $525,000.

How are higher interest rates affecting Houston buyers?

With mortgage rates around 6.8%, we're seeing fewer first-time buyers who are getting priced out of many areas. However, cash buyers now represent 28% of purchases (up from 22% last year), and move-up buyers are being more selective but still active.

What should I expect if I'm selling a house with problems in Houston?

Properties with issues like foundation problems, title complications, or major repair needs face challenges in the traditional market. However, there's still strong investor demand for these properties, and direct sale options can often provide faster, more certain solutions than trying to navigate MLS listings.