Whether you’re buying or selling a home in Houston, Texas, understanding real estate market trends can help you make smarter decisions and get better results. While it may seem like something only industry insiders can do, the truth is—you can learn to read market trends like a pro with a few key tips.

---

Why Market Trends Matter

Real estate market trends reveal the balance between supply and demand, which affects everything from home prices to how quickly properties sell. Knowing these patterns helps buyers time their purchase and helps sellers price their homes competitively.

---

1. Watch the Median Home Price

Tracking the median home price in Houston over several months can help you see whether the market is heating up or cooling down. Rising prices often signal strong demand, while falling prices may mean buyers have more negotiating power.

---

2. Monitor Days on Market (DOM)

Days on Market shows how long homes take to sell. Shorter DOM means a seller’s market—homes sell quickly, often with multiple offers. Longer DOM can mean buyers have more choices and leverage.

---

3. Follow Inventory Levels

Inventory is the number of homes currently for sale. Low inventory in Houston typically leads to higher prices, while high inventory can slow the market down and increase competition among sellers.

---

4. Compare List-to-Sale Price Ratios

This metric shows the difference between the asking price and the final sale price. A ratio close to or above 100% means sellers are getting their asking price (or more). Lower ratios may indicate that buyers have room to negotiate.

---

5. Keep an Eye on Mortgage Rates

Even small changes in interest rates can impact buyer affordability and demand. Lower rates generally attract more buyers, while higher rates can slow the market.

---

6. Pay Attention to Local Factors

Houston’s real estate market can be influenced by job growth, energy industry trends, and new construction projects. Local developments often have a bigger impact than national news.