NEWSLETTER - AUGUST 2026
Expert Tip of the Month
Today's market rewards preparation. Buyers have more inventory to choose from, while sellers continue to benefit from stable pricing and motivated purchasers. Those who make informed decisions before the fall market gains momentum are positioning themselves for long-term success.
Houston's housing market enters August with renewed momentum. Stronger sales, rising pending contracts, and stable home prices are creating one of the healthiest environments buyers and sellers have experienced in several years.
As summer reaches its peak, the Greater Houston housing market continues to demonstrate remarkable resilience. According to the latest Houston Association of REALTORS® (HAR) Housing Market Update, single-family home sales increased 3.5% year over year in June, while pending sales jumped an impressive 12.3%, signaling that buyer demand remains strong well into the second half of the year. Luxury homes priced above $1 million led the market with a 17.1% increase in sales, while inventory held at a balanced 5.2 months, giving buyers more options without weakening seller equity.
Financing conditions continue to favor well-prepared buyers. Freddie Mac reports the average 30-year fixed mortgage rate averaged approximately 6.49% in June—lower than one year ago—helping improve affordability for the twentieth time in the past twenty-three months. While rates have edged slightly higher in late July, they remain well below last year's levels, allowing many buyers to re-enter the market with greater purchasing power. Arash Asgharian, your trusted Houston real estate broker, believes August presents an excellent opportunity for both buyers and sellers.
Market Overview:
July Snapshot
Houston isn't experiencing a slowdown—it's experiencing normalization. Buyers have choices, sellers still have leverage, and that's exactly what defines a healthy real estate market.
Growing sales, balanced inventory, and steady pricing highlight a market that is becoming healthier rather than hotter.
The latest HAR report paints an encouraging picture for Houston real estate. During June, 8,820 single-family homes were sold, representing a 3.5% increase over the same month last year. Overall property sales climbed 2.6%, generating nearly $4.5 billion in total dollar volume, while pending contracts surged 12.3%, indicating that today's activity is likely to translate into even stronger closings during late summer and early fall.
Price appreciation has become more sustainable. The average single-family home price reached a record $455,159, increasing 1.2% from last year, while the median home price remained essentially unchanged at $345,000. This stability benefits both buyers and sellers by preserving equity without creating excessive affordability challenges. The luxury market continues to outperform every other segment, demonstrating ongoing confidence from high-net-worth buyers.
Inventory remains balanced at 5.2 months, slightly above the national average of 4.5 months, providing buyers with greater selection while maintaining healthy competition for well-priced homes. Days on Market increased modestly from 50 to 52 days, reflecting a market where buyers are making more deliberate purchasing decisions rather than rushing into multiple-offer situations.
Buying Trends:
Opportunity Favors Prepared Buyers
The best homes still attract attention quickly. Preparation is your greatest advantage. Buyers who understand their financing, know their priorities, and act decisively continue to secure outstanding opportunities across Houston.
More inventory and improved affordability are giving buyers greater negotiating power without reducing the quality of available homes.
August buyers are entering one of the most balanced markets Houston has seen in recent years. Homes priced between $150,000 and $249,999 posted a 14.4% increase in sales, reflecting continued demand from first-time buyers and young families. Meanwhile, the luxury segment once again led the market, with 527 homes priced above $1 million sold during June—a remarkable 17.1% year-over-year increase.
The largest segment of the market—homes priced between $250,000 and $499,999—experienced only a slight 1.1% decline, suggesting buyers in this price range remain active but increasingly selective. Rather than competing against dozens of offers, buyers now have time to compare neighborhoods, negotiate repairs, and secure financing before making an offer.
Improved affordability is another encouraging trend. Combined with lower mortgage rates than a year ago and more available listings, buyers today have significantly more flexibility than they did throughout much of 2024 and 2025. Those entering the market with mortgage pre-approval and realistic expectations are finding opportunities that simply weren't available a year earlier. Arash Asgharian encourages buyers to stay proactive.
Selling Highlights:
Preparation Pays in a Balanced Market
The market still rewards quality. Sellers who present their homes professionally and price them realistically are attracting strong offers, while those who overprice often spend weeks making unnecessary price adjustments.
With inventory remaining healthy and buyers becoming more selective, August rewards sellers who combine strategic pricing with exceptional presentation.
Houston sellers continue to benefit from a market where demand remains strong, but expectations have evolved. Buyers today have more homes to compare than they did a year ago, making first impressions more important than ever. While inventory has stabilized around 5.2 months, well-prepared homes that are priced accurately continue to attract serious interest and sell efficiently.
The encouraging news for homeowners is that property values remain resilient. The average single-family home price has reached another record high, while the median price has remained remarkably stable. This combination protects seller equity while giving buyers confidence that they're purchasing in a healthy, sustainable market rather than an overheated one.
Today's successful sellers share several common strategies:
Price based on current comparable sales—not last year's peak expectations.
Invest in professional photography and staging before going live.
Complete minor repairs that improve buyer confidence.
Maximize showing availability during the critical first two weeks on the market.
With pending sales continuing to outpace recent closing activity, many of today's buyers are actively searching rather than simply browsing. Sellers who enter the market prepared are positioned to benefit from this growing pipeline of motivated purchasers. Arash Asgharian advises homeowners to focus on value rather than speculation.
Rental Market Update:
Houston Rentals Remain a Smart Choice
Stable rents, healthy occupancy, and continued population growth create an environment where investors can focus on long-term appreciation while generating dependable rental income. That's a powerful combination.
Steady leasing activity, stable rents, and continued population growth are keeping Houston's rental market healthy for both tenants and investors.
Houston's rental market continues to demonstrate remarkable stability as demand remains consistent across the metropolitan area. Single-family rental activity has remained strong throughout the summer, supported by corporate relocations, new graduates entering the workforce, and families transitioning before the new school year.
Unlike many major metropolitan areas that continue experiencing significant rent volatility, Houston offers one of the nation's strongest value propositions. Competitive pricing, abundant housing options, and continued job growth make the city attractive to both renters and long-term investors.
For property owners, today's market emphasizes retention as much as acquisition. Well-maintained homes, responsive property management, and competitive lease terms continue to generate shorter vacancy periods and stronger tenant satisfaction. Many landlords are finding that investing in property improvements delivers better long-term returns than aggressive rent increases.
Investors also continue to benefit from Houston's expanding employment base, which supports consistent rental demand across multiple price points. As more residents relocate for opportunities in healthcare, energy, technology, manufacturing, and logistics, the rental market remains supported by strong underlying economic fundamentals. Arash Asgharian believes Houston remains one of the strongest rental investment markets in Texas.
Neighborhood Spotlight:
The Heights: Timeless Charm Meets Modern Growth
People don't simply buy a home in The Heights—they invest in a lifestyle. The neighborhood's history, amenities, and location continue to make it one of Houston's most desirable places to live, and that enduring demand supports long-term value.
Historic character, vibrant local businesses, and continued investment keep The Heights among Houston's most desirable communities.
Few neighborhoods have evolved as successfully as The Heights. Combining early 20th-century architecture with modern development, The Heights continues to attract professionals, growing families, retirees, and investors seeking a community that offers both lifestyle and long-term value.
Walkability remains one of the neighborhood's greatest strengths. Residents enjoy convenient access to locally owned restaurants, coffee shops, boutique retailers, parks, and the popular Heights Hike and Bike Trail. The area's proximity to Downtown Houston, the Galleria, and the Texas Medical Center makes commuting manageable while preserving a strong neighborhood identity.
Housing options remain diverse, ranging from beautifully restored historic cottages to luxury custom homes and contemporary townhomes. This variety appeals to buyers across multiple price ranges while helping maintain consistent demand regardless of broader market conditions.
Investors also continue to view The Heights as one of Houston's most resilient neighborhoods. Limited land availability, ongoing redevelopment, and sustained buyer interest have supported long-term appreciation over multiple market cycles. Even during periods of slower market activity, The Heights has consistently remained one of the city's most competitive Inner Loop communities. According to Arash Asgharian, The Heights continues to represent one of Houston's strongest long-term investments.
Local Insight:
Stay Ahead Before the Fall Market Accelerates
Houston has always rewarded people who make informed decisions based on facts, not fear. Whether you're buying your first home, selling to move up, or expanding an investment portfolio, today's market offers opportunities for those who are prepared.
As August transitions toward fall, Houston's real estate market continues to reward buyers, sellers, and investors who rely on current market conditions rather than outdated assumptions. Inventory remains balanced, buyer activity is strengthening, and home values continue to hold steady—creating a market built on confidence rather than urgency.
For buyers, the biggest advantage this month is choice. With more homes available than during the competitive years of 2021 through 2024, there is greater opportunity to compare properties, negotiate favorable terms, and complete thorough inspections without feeling rushed. However, desirable homes in well-established neighborhoods continue to sell quickly, making mortgage pre-approval and financial preparation essential before beginning the home search.
For sellers, August remains one of the final opportunities to capture families hoping to move before the school year is fully underway. Buyers are motivated, but they're also informed. Accurate pricing, professional marketing, and a move-in-ready presentation continue to produce the strongest results. Homes that enter the market properly prepared are generating significantly more online engagement and stronger showing activity than those requiring immediate updates.
Real estate investors also have reason for optimism. Houston's expanding employment base, consistent population growth, and relatively affordable housing continue to support both long-term appreciation and rental demand. With inventory levels becoming healthier and financing conditions more stable than a year ago, many investors are actively identifying opportunities before the traditionally active fall season begins. Arash Asgharian encourages clients to focus on long-term fundamentals rather than short-term headlines.
Q&A:
Ask the Experts
Q: I'm seeing headlines about a "shifting market." Should I wait to buy?
A: That depends on your personal timeline, not the headlines. Here's the reality: Houston's median price is flat year-over-year, inventory is up, and rates, while ticking higher recently, are still below where they were a year ago. That combination, more choices, stable prices, and relatively moderate rates, is actually favorable for buyers. Waiting carries its own risks. If rates continue their upward trend, a $345,000 mortgage at 6.75% costs about $50 more per month than at 6.58%. Over 30 years, that adds up. Buy when you're ready, not when the news tells you to.
Looking Ahead:
September & Beyond
Markets change, but strong fundamentals endure. Houston continues to grow because people see opportunity here. Whether you're buying, selling, investing, or simply planning for the future, success comes from making informed decisions backed by trusted guidance and reliable market data.
Houston enters the second half of 2026 from a position of strength. Population growth remains steady, employers continue expanding across multiple industries, and the city's relative affordability compared to many other major metropolitan areas continues attracting new residents and businesses.
As the market moves into September, several trends are expected to shape activity:
Buyer demand is likely to remain healthy as pending contracts convert into closed sales.
Inventory should stay balanced, giving buyers continued selection while supporting stable home values.
Luxury properties are expected to remain one of the strongest-performing market segments, reflecting ongoing confidence in Houston's economy.
The rental market is projected to remain active, supported by job growth, relocation activity, and continued in-migration.
For homeowners considering selling before year-end, the early fall market often attracts highly qualified buyers who are motivated to close before the holiday season. Buyers, meanwhile, may continue benefiting from improved selection and more balanced negotiations compared with the highly competitive markets of previous years.
Looking beyond 2026, Houston's long-term outlook remains exceptionally positive. Continued investment in infrastructure, healthcare, energy, manufacturing, technology, and logistics supports one of the nation's most diversified regional economies. Combined with a relatively affordable cost of living and strong job creation, these fundamentals continue to make Houston one of America's most attractive housing markets.
