NEWSLETTER - AUGUST 2025
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Expert Tip of the Month
Preparation and presentation beat timing in a balanced market.
In today’s more balanced real estate market, where urgency has cooled but opportunity remains, thoughtful strategy is more important than ever. According to Houston Realtor Arash Asgharian, both buyers and sellers should be adapting their approach for clarity, confidence, and long-term value.
“For buyers,” Arash notes, “it’s not about rushing; it’s about being ready. Get pre-approved, understand your budget, and take the time to study listings and neighborhoods. When the right home shows up, you can move decisively.” With homes staying on the market longer; averaging 76 days, buyers have the rare chance to include contingencies, request repairs, or negotiate price adjustments without fear of being outbid in minutes.
For sellers, presentation is critical. Arash emphasizes the importance of professional photography, well-written listing descriptions, walkthroughs, and even pre-listing inspections to streamline negotiations. “In a slower market, buyers notice the details. Homes that are move-in ready, staged well, and priced accurately will always rise to the top,” he explains.
He also recommends flexibility; whether it’s offering a slightly longer closing timeline, covering part of the buyer’s closing costs, or being open to minor concessions during inspection. These can go a long way toward closing a deal efficiently and without drama.
As summer begins to wind down, the Houston market favors those who are proactive. Whether buying or selling, preparation and polish can make all the difference in turning market balance into personal advantage.
Market Overview:
July Snapshot
Summer market enters balance, steady prices, rising inventory, resilient demand.
As of July 2025, Houston’s real estate market is demonstrating signs of healthy balance. The median sale price holds steady at around $351,000, showing little change from June and maintaining a 6–7% increase compared to the same time last year (HoustonProperties.com, HAR.com). This stability signals that while price appreciation has cooled from the aggressive spikes of 2021–2022, demand remains consistent, and sellers are still achieving strong values for well-prepared listings.
Homes are spending an average of 76 days on the market, up from about 64 days last July; a sign that buyers are taking more time and sellers are facing a slightly longer selling cycle. However, closed sales are up 10% year-to-date, and pending contracts rose 7% in July, showing that activity hasn’t slowed; only the urgency has.
One key trend this summer is the sharp increase in price reductions, up 67% year-over-year. This suggests sellers are adjusting to meet buyer expectations more quickly, and buyers are becoming more strategic in their offers. Still, homes that are move-in ready and competitively priced continue to attract strong attention; often going under contract in under a month.
Forecasts from HAR and local economists project 2–4% growth in prices through the end of 2025, alongside a steady rise in inventory. With a current 5.3-month supply, Houston is shifting away from a seller’s market toward neutral territory; offering opportunity for both sides and a more sustainable pace moving forward.
Buying Trends:
Smart Buyer Watch: Financing & Leverage
Buyers gain leverage in longer days with more listings, and better terms.
With homes now averaging 76 days on market; up significantly from last summer, buyers in Houston are enjoying more breathing room and bargaining power than they’ve had in years. This shift is opening doors for thoughtful decision-making, thorough inspections, and stronger negotiation opportunities. Despite mortgage rates hovering between 6.5% and 7%, pending sales are up 7%, showing that well-prepared buyers are still stepping in when the right property appears.
A notable demographic trend is the rise in activity from first-time buyers and relocating families, especially in outer suburbs like Cypress, Pearland, and Richmond. These areas continue to offer more home for the dollar, newer construction, and access to highly rated schools; an appealing trifecta in today’s environment.
According to HoustonProperties.com, the uptick in price reductions; up 67% year-over-year, has opened doors for buyers to negotiate closing costs, inspection repairs, or even furniture and appliance inclusions. Contingencies, once rarely accepted, are now back on the table in many areas, particularly when listings have been sitting for over a month.
Arash Asgharian, a trusted local realtor, advises buyers to explore rate-lock options, especially through local lenders offering temporary buydowns or adjustable rates with refinancing guarantees. Pairing these with flexible closing timelines and clean offer terms can help secure a favorable deal in a market that, while more balanced, still moves quickly for well-priced homes. For buyers who are financially ready, this is one of the most strategic windows we’ve seen since 2019.
Selling Highlights:
Seller Strategies & Competitive Opportunities
Sellers stand out with staging, pricing savvy, and strategic flexibility.
While the frenzy of the 2021–2022 housing boom has faded, Houston sellers in 2025 still have strong opportunities; especially those who understand today’s more discerning buyer. Homes are sitting longer, averaging 76 days on market, which means gone are the days of instant offers and waived inspections. Instead, buyers are taking their time, comparing options, and negotiating with more confidence.
That said, motivated sellers who price competitively and market their homes well continue to succeed. According to HoustonProperties.com, homes in good condition, with professional photos, virtual tours, and clean presentation, are still drawing attention; many going under contract in 30 days or less. However, sellers who overprice or fail to prepare are facing the reality of price cuts, which are up 67% year-over-year.
Presentation is key. Simple investments like repainting, minor repairs, landscaping touch-ups, or energy-efficient upgrades can have a major impact. Even highlighting features like low utility costs or proximity to new infrastructure projects can be persuasive. Flexibility also matters: being open to closing date adjustments, buyer contingencies, or offering repair credits can help keep deals together in a more measured market.
Luxury listings, in particular, benefit from thoughtful perks; such as offering pre-inspections, covering a portion of closing costs, or staging services.
Realtor Arash Asgharian emphasizes: “In today’s market, sellers need to be proactive, not passive. Smart preparation and realistic pricing win every time.”
If you’re considering listing, now is the time to plan your approach for fall.
Rental Market Update:
July Trends
Renters benefit subdued price growth, more supply, and summer specials.
Houston’s rental market in July 2025 offered a moment of opportunity for tenants. The average monthly rent held steady at approximately $1,850, showing minimal change from June and just a modest 2–3% increase year-over-year (Zumper, HAR.com). After years of steady rent hikes, this pause is giving renters more breathing room and more options.
Vacancy rates ticked up slightly, thanks in large part to the completion of new build-to-rent communities in suburban areas like Katy, Cypress, and Richmond. These developments, often offering single-family-style homes with amenities like dog parks, co-working lounges, and maintenance-free yards, are providing renters with high-quality alternatives to traditional apartments.
With more competition among landlords, incentives are becoming common: think first-month-free offers, reduced security deposits, and even shorter lease terms. These specials are particularly prevalent in the suburbs, where supply is outpacing demand for the moment.
In more premium areas such as Memorial West, The Heights, and The Woodlands, rent remains higher and demand consistent, but even these hotspots are experiencing a slower lease-up pace compared to spring. Renters who are flexible with move-in dates or location preferences may find significant value in these cooler weeks.
Looking ahead to fall, many leasing managers anticipate demand to rise again as families and students settle back into routine. If you're planning a move, now may be the best time to lock in favorable terms before competition increases and incentives disappear.
Neighborhood Spotlight:
Top Suburbs & Urban Pockets
Suburbs shine: Cypress, Memorial West, Energy Corridor spotlighted.
Cypress & Montgomery County Northwest: Home sales jumped by 27% year-over-year in June, with pending contracts rising 120%; though days on market stretched to 127 as listings rose and buyers weighed options.
Memorial West: June recorded a 35% increase in sales; homes are selling in about 49 days, with pending sales up 27%; signs of sustained interest in space, schools, and accessibility.
Energy Corridor: July showed improved consumer confidence, with median home prices near $475,000 and increased price reductions, positioning the area well as infrastructure improvements along Westpark Tollway enhance connectivity.
Together, these areas exemplify the shift toward high-amenity suburban and job-centric nodes that continue to outpace older central zones in both activity and price growth.
Local Insight:
Houston Growth Watch: Transit and Zoning
Keep an eye on transit, retail, and planning projects shaping Houston’s next wave.
Houston’s real estate landscape is increasingly influenced by what’s happening beyond the walls of the home; and right now, that includes major infrastructure projects, zoning changes, and exciting mixed-use developments that are reshaping where and how people want to live.
One of the most impactful developments is the continued expansion of the METRORapid Silver Line, which will eventually offer faster, more efficient transit options through Uptown and West Houston. At the same time, road improvements on FM 1960, Beltway 8, and the Katy Freeway are already enhancing traffic flow and connectivity, making suburbs like Cypress, Jersey Village, and Brookshire more attractive to commuters and investors alike.
Meanwhile, the East River project, a 150-acre redevelopment in the historic Fifth Ward, is moving forward with new restaurants, office spaces, trails, and waterfront access; creating a future destination neighborhood for urban professionals and creatives. Nearby areas are already seeing early investment interest and rising property values.
Another trend shaping the second half of 2025 is the increasing focus on flood resilience. Following recent Gulf storms and updated FEMA floodplain maps, buyers are prioritizing higher-elevation neighborhoods or those with newly upgraded drainage systems. The city is also revisiting zoning in high-risk areas, which could influence long-term planning and valuation.
Ultimately, real estate is not just about square footage; it’s about livability and long-term vision. Keeping an eye on Houston’s evolving infrastructure is key to staying ahead in this dynamic market.
Q & A:
Ask the Experts
Q: Is late summer a good time to buy?
A: Yes. Increased inventory, cooling competition, and negotiating window make July/August ideal for strategic buyers.
Looking Ahead:
August & Beyond
As summer winds down, Houston’s housing market enters a season of strategy, with opportunity for those who act wisely.
As we move deeper into the second half of 2025, Houston’s real estate market is expected to remain steady, with moderate activity across most segments. While July showed stable home prices and slightly longer days on market, August typically marks the last active month before the back-to-school season cools buyer momentum. This creates a unique opening for buyers who are prepared; with less competition, increased price reductions, and more time to negotiate favorable terms.
For sellers, the window remains open, but expectations must adjust. With a growing inventory of listings (now at a 5.3-month supply, per HAR.com), standing out will require competitive pricing, high-quality photos, and flexibility in showings or closing dates. If you’re planning to list this fall, now is the time to prep your home from maintenance touch-ups to staging strategies.
Looking beyond August, economists forecast a slight cooling through Q4, with Houston’s home values expected to grow between 2%–4% through the end of the year. The Fed’s next rate decision may influence mortgage affordability, but large shifts are unlikely in the short term. For renters, fall could bring more leasing incentives, especially in suburban build-to-rent communities.
Whether buying, selling, or watching the market, late summer is about positioning, not pressure. Stay informed, stay prepared, and connect with a trusted realtor like Arash Asgharian to navigate the path ahead with confidence.
