The Houston, TX metro area housing market in January 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has decreased by 2.2% year-over-year, settling at $327,500. This decline contrasts with the Median List Price, which has increased by 4.2% to $350,000, indicating a potential gap between seller expectations and buyer willingness.

In terms of Price Per Square Foot, the Median Sales Price per square foot has seen a modest increase of 1.6%, reaching $162.48. Similarly, the Median List Price per square foot has risen by 2.1% to $173.98. These figures suggest a slight upward pressure on pricing, despite the overall decrease in the Median Sales Price.

The number of Homes Sold in January 2025 was 5,119, showing a marginal increase of 0.1% compared to the previous year. However, Pending Sales have experienced a significant decline of 16.2%, totaling 6,521. This drop in Pending Sales could indicate a slowdown in buyer activity or potential delays in closing transactions.

New Listings have increased by 5.4%, reaching 9,017, while inventory levels have risen by 10% to 25,208. The Months of Supply have also seen a substantial increase of 40%, now standing at 4.9 months. These figures suggest a growing supply of homes on the market, which could contribute to the downward pressure on sales prices.

The Median Days on Market have increased by 4% to 56 days, indicating that homes are taking slightly longer to sell. The average sale to list ratio has decreased by 0.5%, now at 96.5%, suggesting that sellers are receiving slightly less than their asking prices. Additionally, the percentage of Homes Sold above list price has decreased by 1.1% to 11.1%.

Price Drops have become more common, with a 7.9% increase, now affecting 36.5% of listings. This trend may reflect sellers' adjustments to align with market conditions. Meanwhile, the percentage of homes going off the market within two weeks has seen a slight increase of 0.4%, now at 23.2%, indicating that some properties are still attracting quick interest.

Overall, the Houston housing market in January 2025 is characterized by a mix of rising inventory and list prices, alongside declining sales prices and Pending Sales. These dynamics suggest a market in transition, with potential opportunities for buyers to negotiate favorable terms as sellers adjust to the evolving landscape.