Houston Real Estate Market Report: February 2026 Edition
A Comprehensive Guide for Relocation & New Construction Buyers
The Houston real estate market has entered a phase of healthy normalization as we move into 2026. For relocation buyers, this shift translates into a rare combination of increased inventory, stabilizing prices, and enhanced negotiating power. This report provides the essential metrics and insights you need to navigate the current landscape, with a specific focus on the booming new construction sectors in West Houston.
View Market Data
Key Market Indicators: January 2026 Snapshot
The following table outlines the year-over-year performance of the Houston single-family home market.
Market Analysis: What These Numbers Mean for You
The 16.6% surge in active listings is the most significant development for buyers. With nearly 35,000 homes available, the "bidding war" era has largely subsided, replaced by a market where buyers can take their time. The average home now stays on the market for 66 days, providing a comfortable window for relocation planning and thorough inspections.
While the median price saw a slight dip, the average price rose, driven by a robust 15.5% jump in luxury home sales ($1M+). For the core market ($250k - $500k), activity has moderated, creating more leverage for buyers in this price range.
Spotlight: New Construction Opportunities
West Houston remains the epicenter for new construction, offering modern amenities and builder-backed financial incentives that often outperform the resale market.

Pro Tip for New Construction: Builders are currently offering aggressive rate buydowns and closing cost assistance. In many cases, a new construction home can have a lower monthly payment than a cheaper resale home due to these financing incentives.
Financing & Affordability Update
As of February 12, 2026, mortgage rates have shown signs of easing, further improving the outlook for buyers.
  • Current 30-Year Fixed Rate: ~6.09% (Freddie Mac Average)
  • Current 15-Year Fixed Rate: ~5.44%
  • Monthly Savings: Buyers of a median-priced home are currently paying approximately $161 less per month than they would have in January 2025, thanks to the combination of adjusted prices and improved rates.
Strategic Recommendations for Relocation Buyers
  1. Monitor Pending Sales: The 8.5% rise in pending sales suggests a busy spring market ahead. If you find a property that fits your needs, don't wait too long, as competition may increase by March.
  1. Leverage Builder Incentives: If you are looking at new construction, ask about "inventory homes" (spec homes). Builders are often more motivated to offer deep discounts or upgrades on homes that are already completed or near completion.
  1. Focus on Inventory Levels: Neighborhoods with higher inventory (like Fulshear and Katy) offer the best opportunities for price negotiations and seller concessions.
Conclusion
The Houston market in 2026 is defined by balance and opportunity. Whether you are looking for a luxury estate in Fulshear or a modern starter home in Richmond, the current data supports a strategic and confident entry into the market.