NEWSLETTER - JULY 2025
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Expert Tip of the Month
Success in today’s market comes from preparation; and from understanding your leverage in a more balanced environment.
“Whether you're buying, selling, or renting, timing is crucial,” says Arash Asgharian, a trusted Houston realtor.“ For buyers, have your financing locked in before the first showing. For sellers, don’t rely on price alone; presentation is everything. And for renters, ask about move-in specials or lease flexibility, especially in new communities.”
Arash emphasizes that Houston’s current market favors those who stay informed and work with local professionals who know the city block by block. With real estate, details matter; and small adjustments can lead to big results.
Market Overview:
June Snapshot
June brought steady price growth and a slight increase in inventory, suggesting a gradually balancing market.
Houston’s median home price rose to approximately $345,000 in June 2025, marking a month-over-month increase of nearly 4% and a 6–7% bump year-over-year (HAR.com). Inventory also grew to about a 5.2-month supply; up from just over 4 months in May, which points to a gradual shift toward market equilibrium. Despite higher home insurance costs and affordability concerns, demand remains resilient.
Homes are still selling near list price, and the average days on market decreased slightly from May, now hovering around 56 days. Compared to the national landscape, Houston’s market appears healthier, with stable pricing and a sustainable pace of sales. As we enter midsummer, this balance offers opportunities for both cautious buyers and confident sellers.
Beyond pricing, buyer demographics are also shifting. Investors have slightly pulled back compared to their high activity in 2021–2023, making space for more first-time homebuyers and relocating families.
According to data from the Houston Association of Realtors (HAR), suburban areas like Cypress, Pearland, and Spring are experiencing faster growth in sales volume than central Houston, largely due to newer developments and better affordability. Meanwhile, higher interest rates have cooled down speculative buying, encouraging more long-term ownership decisions.
Another key factor in this market is the weather-related risk shaping buyer behavior. Following the recent Gulf storms and rising insurance premiums in flood-prone zones, we’ve seen an uptick in interest for properties in higher-elevation neighborhoods or those outside designated flood plains.
Buying Trends:
What Buyers Should Know
Buyers are stepping back in as inventory rises and mortgage rates settle near 6.5%, offering a more manageable path to ownership.
June brought a noticeable uptick in buyer activity, thanks in part to a broader selection of homes and slightly improved financing conditions. According to Mortgage News Daily, the average 30-year fixed mortgage rate hovered around 6.6%, down marginally from early spring.
First-time buyers continue to lean on down payment assistance programs and new construction communities. These options offer more attainable entry points, especially in outer suburbs where homes are priced below the metro average.
In Houston, home showings increased, especially in the $300K–$450K range. Although home prices remain elevated, the boost in inventory has given buyers more time and choice; reducing the pressure of bidding wars.
For those ready to buy, Arash Asgharian recommends locking in rate quotes early and acting decisively on well-priced listings. Summer 2025 may prove to be one of the most balanced buying windows in recent years. With inventory on the rise and fewer bidding wars, buyers who are prepared can negotiate more favorable terms than in previous peak seasons.
Selling Highlights:
Tips for Sellers
Homes are moving faster, and sellers who price strategically are seeing offers within days; even in a more stocked market.
Sellers in Houston are enjoying continued momentum. In June, average time on market dropped to about 56 days; a notable improvement from May’s 76 days (HAR.com). While inventory has grown slightly, buyer competition remains strong in well-priced, well-maintained homes, especially in central and suburban neighborhoods.
Many listings are receiving multiple offers, particularly in the $250K–$400K price range. Arash Asgharian advises sellers to prepare early: deep cleaning, decluttering, and highlighting upgrades such as new roofs, HVAC systems, or energy-efficient windows can boost perceived value.
Summer is still peak season; pricing at or just below market value often results in faster sales and even bidding wars. With interest rates still relatively high, buyers remain cautious, so overpricing can hurt your listing more than ever.
Additionally, professional listing photos and video tours are proving to be highly effective in driving traffic to open houses and showings. With buyers doing more research online before visiting homes in person, strong visual presentation can make or break early interest. Sellers should also be ready to negotiate closing timelines or cover limited closing costs to attract buyers who may be stretched by rising rates.
Overall, sellers who combine strong marketing with realistic pricing are finding success quickly; and in many cases, exceeding their expectations. Summer is still peak season, pricing at or just below market value often results in faster sales and even bidding wars. With interest rates still relatively high, buyers remain cautious, so overpricing can hurt your listing more than ever.
Rental Market Update:
June Trends
Houston’s rental market remains strong, with rent prices inching up and new developments offering modern alternatives to ownership.
Houston’s average rent reached $1,850 in June, up about 2.5% from a year ago (Zumper). Demand for rentals; especially single-family homes, continues to climb as affordability challenges delay homeownership for many residents. According to Yardi Matrix, over 4,600 build-to-rent homes are currently under construction in the metro area, with projects in Katy and Cypress offering high-end amenities with lease flexibility.
Rental inventory also rose in May, giving tenants more options across various price points. For landlords, the growing pool of renters and lower vacancy rates present a solid investment outlook. For renters, this summer offers a window to secure quality housing before fall demand rebounds. Renters are advised to act quickly in high-demand neighborhoods, where listings still close within days.
Luxury rentals and professionally managed communities are also gaining traction among younger professionals and remote workers seeking convenience, privacy, and home-like features without long-term commitment. With more developers entering the Houston rental market, competition among property managers has led to perks such as free rent for the first month, reduced deposits, and flexible lease terms.
Submarkets like Sugar Land, Spring, and Richmond are seeing strong absorption rates due to their proximity to good schools and major employers. Experts predict that as interest rates remain elevated, rental demand will stay strong through the end of 2025. Whether you're a renter looking for stability or an investor seeking yield, Houston’s rental sector is proving to be one of the most resilient segments of the housing market.
Neighborhood Spotlight:
Up-and-Coming Areas
The Heights, Katy, and parts of East Downtown are attracting attention from both buyers and renters thanks to rising values and lifestyle perks.
The Heights continues to command attention in Houston’s real estate conversation, with average home values climbing nearly 10% over the past six months (Redfin). Known for its walkability, community charm, and proximity to downtown, The Heights appeals to young professionals and growing families alike.
Meanwhile, Katy has emerged as a hotbed for build-to-rent developments, such as the new Tricon Peek Road project, offering smart single-family homes designed for flexible leasing. East Downtown (EaDo) is also gaining momentum, with new restaurants, loft conversions, and light rail access contributing to rising prices and shrinking inventory.
These areas present opportunities for both homeowners and investors, as appreciation and tenant demand continue to outpace many traditional suburbs. Arash Asgharian recommends buyers and investors closely monitor these neighborhoods before prices climb further.
Q & A:
Ask the Experts
Q: Should I buy now or wait for interest rates to drop?
A: Buy now if you're ready; prices are climbing steadily, and waiting could cost more long-term. When rates drop, more buyers will rush in, driving prices even higher. Plus, today’s market gives you more choices and negotiating power than you’ll likely have once demand surges again.
Looking Ahead:
July & Beyond
July may bring steadier prices and more listings; a welcome trend for buyers and renters looking to act before fall demand ramps up.
As we step into July, experts forecast a moderation in price growth, due in part to seasonal slowdowns and expanding inventory. HAR reports a 5.2-month supply; the highest since early 2023, giving buyers more leverage and time to act. Mortgage rates are expected to remain in the 6.5%–7% range, barring any major Fed surprises (Freddie Mac).
For sellers, mid-summer represents a strong window before back-to-school activity wanes. For renters, options are broadening, particularly in suburban zones with new communities opening weekly. Overall, Houston’s market is stable and balanced, a healthy sign after several years of volatility. While 2025 may not bring explosive growth, it offers consistency and opportunity for those who plan carefully.
Local Insight:
What’s Happening in Houston?
Houston’s new METRORapid Silver Line expansion, expected to connect Uptown to Northwest Transit Center by late 2025, could significantly boost property values along the corridor.
Similarly, the East River Development in Fifth Ward is bringing in restaurants, offices, and green space; making the area increasingly attractive to young professionals and investors. Dozens of new residential and retail projects are breaking ground nearby, signaling long-term growth. Property appreciation in adjacent neighborhoods has already outpaced the city average over the past 12 months.
“Buyers often ask what’s going on in the neighborhood. Real estate isn’t just about square footage; it’s about where you live and how that place is evolving,” says Arash Asgharian.