Houston New Home Sales Decline as Days on Market Rise Across Texas

New data from the Texas Real Estate Research Center shows that new home sales across the state slipped in November, reflecting a cooler housing market as properties stay on the market longer. For buyers and developers in Houston, the shift highlights changing dynamics heading into 2025.

The statewide report indicates that new home sales dipped month-over-month, with the decline most notable in major metros such as Houston, Austin, Dallas–Fort Worth, and San Antonio. At the same time, the average number of days newly built homes spent on the market increased. This combination suggests that buyer demand is moderating while inventory continues to expand.

Houston, which remains one of the country’s fastest-growing homebuilding markets, has also seen signs of this slowdown. Rising mortgage rates, seasonal cooling, and increased supply are all playing roles in reshaping the pace of sales.

What’s driving the slowdown?

According to the report, elevated financing costs continue to impact purchasing power across Texas. Many prospective buyers remain on the sidelines, waiting for improved affordability. Builders have responded by offering more incentives, including rate buydowns and closing cost assistance, but the wider economic environment is still affecting activity.

Inventory growth is another factor. With more homes available, buyers face less pressure to make quick decisions. As a result, the median time on market has risen. For Houston’s builders, this shift could signal a return to more balanced market conditions after several years of rapid demand and limited supply.

Why it matters for Houston

For local buyers, increasing days on market may signal greater negotiating power. More inventory means more options, and slower-moving listings can create opportunities for price adjustments or additional buyer incentives.

For developers and real estate professionals, the trend underscores the need for strategic pricing and targeted marketing. Houston continues to attract new residents, but fluctuating interest rates and broader economic pressures are influencing how quickly homes sell.

Industry watchers say the market is unlikely to experience a dramatic downturn. Instead, the shift appears to be part of a transition toward steadier conditions following the intense competition seen in recent years.

This article is a summary of reporting by GlobeNewswire. Read the full story here.