NEWSLETTER - DECEMBER 2025
Expert Tip of the Month
December’s expanding inventory and calmer market conditions offer buyers, sellers, and investors a strategic opportunity to act with confidence and preparation.
December is a month of strategy; while the holidays often slow activity, this year’s market in Houston is showing signs of balance, not freeze. According to data from Houston Association of Realtors (HAR), single-family home sales in the greater Houston area reached 7,419 units in October 2025, up modestly from a year earlier (HAR.com). Inventory is up—active listings rose about 23 % year-over-year, reaching nearly 59,903 units in October (HAR.com).
For buyers: With more options and slightly less competition, you have a window to negotiate. Arash Asgharian advises buyers to get financing lined up, keep an open search radius (including growth-suburbs), and move when the value is right—not simply because of fear of missing out.
For sellers: The holiday slowdown can work in your favour—but only if you’re proactive. Homes that are priced smartly, well-presented, and actively marketed still stand out. Arash emphasizes to avoid overpricing just because you hope for a quick holiday sale. In a market moving toward balance, realism matters.
For investors: Moderate rent growth and increasing availability of single-family homes are creating more opportunity. Investors are “capitalizing on affordability woes” as inventory accumulates and sellers become more flexible (nationalmortgageprofessional.com).
Market Overview:
November Snapshot
November 2025 reflected a balanced Houston market, with stable prices, growing inventory, and steady opportunities for buyers, sellers, and investors alike.
November 2025 showed Houston’s housing market continuing its transition toward balance after several years of strong seller dominance. Median home prices for November were recorded at $330,000, essentially holding steady from October. This stability reflects a market where demand remains healthy but price growth is moderating. Arash Asgharian notes that homes in move-in-ready condition and desirable neighborhoods still sell quickly, while properties requiring updates or priced above market expectations are spending more time on the market. Buyers can take advantage of this moderation to negotiate more favorable terms.
The rental market in November also remained steady, with the average lease for single-family homes hovering around $2,350 per month. This represents moderate growth compared to last year, providing stability for landlords while giving renters slightly more negotiating power. Investors and homeowners looking for rental income can still find opportunities, particularly in high-demand suburbs and areas close to employment hubs.
November’s activity highlights a Houston market that is no longer overheated but still active. Buyers, sellers, and investors alike need to adapt strategies to this evolving landscape. Arash recommends proactive preparation; buyers securing financing, sellers ensuring homes are well-presented, and investors carefully analyzing opportunities; to navigate the market successfully as we head into the holiday season and December.
Buying Trends:
How to Find Value Without Compromise
Buyers are shifting toward affordability-focused suburbs, leveraging increased inventory and more negotiation power.
Buyers in December are leaning toward suburbs and neighborhoods where value and lifestyle converge. Arash sees strong demand in locations such as Pearland, Cypress, and Spring; areas offering space, newer build options, and commuting access. This aligns with the broader trend toward affordability and negotiation.
Mortgage rates remain a significant factor. Though not in the steep escalation of prior years, rates in the 6 %+ range are still affecting affordability. According to TRERC, the 30-year fixed rate is projected in the 5.6 % to 6 % range by December 2025 (Texas Real Estate Research Center).
Buyers should:
Get pre-approved to move quickly.
Be realistic about condition: properties needing major renovation may still trade for less, but the savings must outweigh time and cost.
Expand geographic scope: under-priced opportunities often lie beyond the obvious hotspots. Arash recommends exploring emerging corridors.
Watch for pricing drops: with months-of-inventory rising, price corrections or concessions are more likely.
For first-time buyers especially, this December presents a better chance to lock in value while competing pressure eases. Keep in mind: moving in the holiday window can also play to your advantage; serious buyers and sellers are active, less competition, fewer distractions.
Selling Highlights:
Expert Strategies for Houston Homeowners
Sellers who price accurately and present their homes professionally can still attract serious, motivated buyers in December.
For sellers ready to act in December, the approach needs to reflect the evolving market. Arash’s key advice is to price smart, present premium, market aggressively. Homes that are stale (over-priced or poorly maintained) risk sitting longer. From the November newsletter style: “Homes with updated features continue to sell faster.”
Some actionable steps for sellers this month:
Get a pre-listing inspection and make minor fixes; buyers are more cautious now.
Stage for holiday appeal, but avoid over-decorating that distracts from the home.
Use professional photography and adjust marketing to reflect the season: emphasize home-office spaces, indoor-outdoor living, and move-in readiness (buyers thinking ahead to spring).
Consider offering incentives when appropriate; closing cost assistance, flexible move-dates; especially if your home has been on market already.
Importantly, Arash stresses while the season may slow pace, it also filters for serious buyers. A well-positioned home in December can stand out. Don’t wait for the market to “heat up” in spring; use the quieter period to capture attention and negotiate from strength.
Rental Market Update:
More Options and Steady Returns for Tenants and Investors
Houston’s rental market is stabilizing with more inventory and moderate rent growth, giving both tenants and investors expanded options.
The rental segment in Houston is displaying more inventory and stable growth heading into December. For example, HAR reported that the average lease price for single-family homes sat at around $2,347 per month, essentially flat compared to last year.
For tenants, this means more negotiation power—more homes, fewer bidding wars, and more room for pickiness. For landlords and investors, the message is: condition and location are critical. Homes in prime suburbs or near major employment hubs still command strong occupancy; homes in less desirable areas face the risk of slower turnover and concessions.
Investors should take note that with affordability pressures reducing owner-occupant demand, some homeowners may rent instead of sell, adding to inventory and making select properties available at modest discounts. One national piece noted that investors are stepping in as sellers become more flexible (nationalmortgageprofessional.com)
Key rental market take-aways:
Expect slightly slower rent growth, not rapid escalation.
Focus on location-amenity match (schools, transit, major employers).
Consider homeowners as potential sellers: some may move to rent.
Use December’s quieter market to target deals.
Neighborhood Spotlight:
The Woodlands — Suburban Value with Lifestyle Appeal
The Woodlands stands out as a top suburban choice thanks to its strong schools, quality homes, and lifestyle-driven demand.
This month’s spotlight turns to The Woodlands—an area combining master-planned community feel, strong schools, green space, and relatively affordable detached homes compared to inner-Loop Houston. For buyers seeking value and lifestyle, The Woodlands aligns with the current trend of suburban appeal.
Home‐styles here vary from mid-priced family homes to upscale residences. Demand remains steady, and as the broader market balances, properties in The Woodlands that are well-maintained and correctly priced are capturing attention. Arash points out: if your target is a combination of space, quality schools, and future resale strength, this neighborhood is worth your consideration.
For sellers in The Woodlands, the competition is increasing, so differentiate via condition, presentation, and readiness to move. For investors: The rental market here enjoys strong demand due to proximity to employers (energy corridor, corporate campuses) and lifestyle amenities—so long term hold makes sense.
Local Insight:
Houston Economy & 2026 Outlook
Houston’s economic resilience and projected growth position the real estate market for steady, moderate improvement in 2026.
Looking ahead to early 2026, Houston’s housing market fundamentals remain favorable: population growth, job creation in energy, health-care, and tech sectors, and a cost-of-living advantage compared to coastal metros. The TRERC projects Texas GDP growth of 3.3 %-3.7 % for 2025, and personal income growth of 5 %-5.7 % (Texas Real Estate Research Center)
Still, headwinds remain: elevated mortgage rates, affordability constraints, and increasing supply mean buyers and sellers must be selective. As one national expert noted: “Home prices are essentially at a solid ground. Any price decline appears to be temporary oversupply…” (Homes.com)
Advice from Arash:
Watch interest rate movements closely – even small rate drops trigger renewed activity.
Align your strategy with your horizon: short-term flip vs long-term hold yield different implications now.
Maintain flexibility: a priced-right property will always find a buyer/investor in a balanced market.
2026 may bring moderate appreciation rather than steep gains. That’s good for stability, not for get-rich-quick mindset. For clients and readers, the message is: build your plan with realism and stay ready.
Q & A:
Ask the Experts
Q: I’m selling in December; should I wait till spring?
A: Not necessarily. December can work in your favor if you act proactively. Buyers in December are serious. Set the right price, stage well, and market smartly. Waiting until spring means more competition and possibly more volatility. Consider December as a strategic advantage.
Looking Ahead:
January & Beyond
January 2026 marks a strategic moment for Houston buyers, sellers, and investors to plan carefully and take advantage of a balanced, opportunity-filled market.
As we move into January 2026, Houston’s real estate market is poised for steady, measured activity. While 2025 closed with a more balanced market compared to the frenzied years prior, early indicators suggest that demand will remain solid, particularly in well-established neighborhoods and emerging suburban corridors. According to the Houston Association of Realtors (HAR), pending sales in November 2025 rose slightly month-over-month, signaling that serious buyers are already preparing for early-year moves (har.com). For buyers and sellers alike, this transitional period offers an opportunity to plan strategically rather than rush decisions.
Mortgage rates are expected to maintain relative stability at around 5.5–6% in early 2026, based on projections from the Texas Real Estate Research Center (TRERC) (trerc.tamu.edu). This environment favors pre-approved buyers who are ready to act quickly, while also giving sellers a realistic framework to price their homes competitively. Arash Asgharian emphasizes that timing and preparation are key. Buyers should line up financing and define their target neighborhoods early, while sellers should ensure their homes are market-ready to capture attention as activity picks up in the new year.
Investment opportunities are likely to remain attractive in select areas. Neighborhoods such as The Woodlands, Pearland, and parts of Cypress continue to offer strong rental demand and future appreciation potential. Moderation in price growth, combined with rising inventory, means investors can be more selective and focus on properties that offer both long-term stability and attractive returns. National trends suggest that markets with solid economic fundamentals and population growth, like Houston, will continue to reward disciplined investors (nationalmortgageprofessional.com).
Looking beyond January, 2026 is shaping up as a year for informed, value-driven decisions rather than speculative moves. Economic indicators—including job growth, population expansion, and energy sector stability—support steady demand across the region. Arash Asgharian advises all clients: whether buying, selling, or investing, the best results will come from thoughtful planning, working with a knowledgeable broker, and focusing on properties that align with personal or investment goals. The new year offers the perfect opportunity to start fresh with a clear strategy in Houston’s evolving real estate landscape.
