NEWSLETTER - FEBRUARY 2026
Expert Tip of the Month
Because Houston’s housing market is now more balanced with higher inventory, strategic planning and pricing are key for both buyers and sellers this month.
As we move into February 2026, buyers and sellers alike are navigating a more balanced Houston market — a shift from the seller’s market of recent years. According to the Houston Association of Realtors, inventory levels have climbed to record highs, giving buyers more options and increased negotiation leverage. (HoustonAgentMagazine.com)
For sellers contemplating a listing, this doesn’t mean prices are collapsing — it means preparation and pricing strategy have never been more important. Homes that are staged thoughtfully, priced correctly from the start, and marketed with a compelling value proposition continue to attract strong interest, particularly in established neighborhoods with desirable schools and easy access to employment centers.
Buyers, especially first-timers and move-ups, now have the advantage of choice. Instead of rushing offers in a frenzy, buyers can select among more homes and negotiate on terms — from closing timelines to repairs. Yet, one constant remains: mortgage rates are still elevated compared to the pandemic years, so lock in financing when you find the right property. (Axios.com)
Arash Asgharian, your trusted real estate broker in Houston, suggests that understanding long-term goals — not just today’s market noise — is essential. Whether you’re buying, selling, or investing, aligning market timing with personal plans creates stronger outcomes.
Market Overview:
January Snapshot
January 2026 reflected a more balanced Houston market with increased inventory and stable pricing, providing buyers and sellers more thoughtful decision space.
January showed the Houston market maintaining a more balanced posture. Inventory growth that started in late 2025 continued into early 2026, with listings outpacing buyer demand in many price tiers. Active inventory reached levels not seen in over a decade, and homes typically spent more days on market compared to previous years — an encouraging sign for buyers seeking breathing room. (HoustonAgentMagazine.com)
Despite this shift, sales activity has remained resilient. The overall number of homes sold in Greater Houston was consistent with last year’s pace, reinforcing the idea that demand hasn’t disappeared — it has normalized. Prices experienced modest changes, with the median sale price remaining stable, supporting both buyer confidence and seller value retention. (HoustonChronicle.com)
Arash Asgharian notes that January’s balance between supply and demand signals a healthier market long term. Sellers can still achieve successful closings with proper marketing and pricing, and buyers can act with more assurance, knowing competition isn’t overwhelming.
Buying Trends:
More Listings, More Leverage
Expanded inventory in the Houston metro is giving buyers greater leverage and thoughtful decision power in early 2026.
Buyers in early 2026 are benefiting from one of the largest supplies of homes in the country. Houston’s inventory levels have expanded so much that listings have outpaced demand — a stark contrast to the tight markets of the pandemic years. (HoustonChronicle.com)
This increase in supply means buyers are no longer rushed into bidding wars on every property. Instead, they can evaluate pricing history, negotiate inspections, and request concessions if needed. This new dynamic isn’t “a buyer’s market” in the traditional low-price sense — it’s more balanced. Serious buyers still find competition in the most desirable ZIP codes, but overall, there’s less pressure and more choice. (Axios.com)
Arash Asgharian, a real estate broker in Houston, recommends that buyers define must-haves early — such as neighborhood preferences, schools, commute considerations, and budget — to move quickly when the right property hits the market. With mortgage rates still above historic lows, he advises securing pre-approval before shopping so offers are viewed as serious and competitive.
Selling Highlights:
Presenting Value in a Balanced Market
Sellers in February 2026 can succeed by balancing realistic pricing with strong presentation to attract motivated buyers.
For sellers, 2026 is all about strategic positioning. While homes aren’t flying off the market as they did during the pandemic, well-priced and well-presented properties are receiving quality interest. Homes in excellent condition often sell close to list price, even with more inventory available. (Axios.com)
Sellers should align listing price with recent comparable sales and be prepared for thoughtful negotiations. Price adjustments, professional staging, and strong online media can make a significant difference in capturing buyer attention. Additionally, properties with updated kitchens, strong curb appeal, and flexible showing availability often outperform others in similar price ranges.
Arash Asgharian emphasizes that timing, presentation, and buyer psychology are more critical than ever. In a more balanced market, buyers pay attention to value — not just price. He suggests sellers consider small upgrades that boost perceived value and communicate a home’s story clearly in listings and during tours.
Rental Market Update:
Steady Demand with Competitive Rents Across Houston
The rental market remains strong with steady demand and competitive rents, especially in family-friendly areas like Katy.
Although home sales dynamics have shifted, Houston’s rental market continues to hold firm. As mortgage rates remain elevated, many potential buyers choose to rent while they refine financing or wait for further rate movement — maintaining strong demand for rental properties. Experts forecast modest rent increases in 2026, particularly for one- and two-bedroom units. (TheLuxuryPlayBook.com)
In Katy, the rental segment reflects this regional trend. With options ranging from apartments to single-family homes, renters have more choices than in past years. Katy’s proximity to employment centers, quality schools, and amenities make it appealing for families and professionals who prefer renting before committing to ownership. (HAR.com)
Arash Asgharian comments that investors with rental properties should focus on tenant experience — responsive property management and thoughtful amenities help retain high-quality renters in a competitive landscape.
Neighborhood Spotlight:
Why Katy Continues to Be a Top Choice for Homeowners
Katy’s strong schools, lifestyle amenities, and solid value continue to draw homeowners in 2026.
Katy stands out as one of the most dynamic suburban markets in the Greater Houston area. With a blend of affordability, quality schools, and growth opportunities, its appeal continues into 2026. According to recent data, the median home price in Katy is approximately $376,000, offering strong value relative to proximity and community amenities. (PropertyFocus.com)
Katy’s population growth is supported by one of Texas’ most rapidly expanding school districts, Katy ISD — which has nearly tripled enrolment over recent decades. This growth drives both family-focused residential demand and long-term stability in property values. (HoustonChronicle.com)
Residents also enjoy a full lifestyle — from shopping at LaCenterra at Cinco Ranch to nature and parks — while employment centers in Katy and Houston remain within commutable reach. This combination of factors makes Katy a favorite for first-time buyers, move-ups, and investors alike.
Local Insight:
Strategic Home Search Tips
Data-driven decisions and strategic marketing are encouraged for the best outcomes in 2026’s balanced market.
As the Houston market settles into this more balanced phase, Arash Asgharian stresses the importance of market education. Buyers should focus less on short-term rate headlines and more on long-term affordability — including neighborhood trends, tax rates, and resale potential. Sellers, meanwhile, need to be honest about where their home sits relative to comparable competition.
One overlooked strategy is timing showings and professional photography to peak online traffic days and optimizing listings for mobile browsers — where most buyers search first. Arash also advocates for customized buyer tours that focus on lifestyle match rather than just home features, helping clients visualize life in a neighborhood.
His advice to both buyers and sellers: use every tool available — data, professional staging, digital presence, and local market intel — to make informed choices.
Q & A:
Ask the Experts
Q: With home prices shifting and inventory rising, what should buyers expect to pay in the Houston area in February 2026?
A: Although macro trends vary by neighborhood, buyers should anticipate stable but moderated pricing compared to the peak years of 2021–2023. Median prices in some Houston suburbs — like Katy — are near $340,000–$380,000, with inventory providing options across price tiers and qualities. Homes may spend more time on the market than in recent seller-dominated years, giving buyers negotiation room. However, pricing still reflects demand for quality homes in areas with good schools and amenities. (Redfin.com)
Arash Asgharian also notes that buyers locking in competitive financing and being ready with pre-approval can often secure more favorable terms in offer negotiations.
Looking Ahead:
March & Beyond
Spring 2026 may see more buyers return if rates ease, while strong local growth continues to support suburban markets like Katy.
As we progress through 2026, key indicators suggest moderate mortgage rate declines could gradually return more buyers into the market, especially if inflation trends stabilize. Meanwhile, inventory levels are expected to remain elevated compared to prior years, keeping opportunities alive for thoughtful buyers. (Axios.com)
In Katy and other Houston suburbs, continued development and quality-of-life enhancements — including new retail, recreation, and community spaces — will further shape local demand. School expansions and infrastructure improvements will remain attractive to family buyers and investors alike. (PerryHomes.com)
Arash Asgharian recommends monitoring interest rate trends, employment growth data, and local planning developments to optimize both buying and selling decisions as the market evolves.
