Introduction
If you’ve been following the news, you’ve likely seen conflicting stories about the real estate market. One report says home prices are dropping, another claims they’re still climbing. Some even suggest we’re heading toward a “housing bubble.”
The truth is, while the national market is shifting, Houston — and many of its surrounding suburbs — remains a strong market for sellers. With continued population growth, low housing inventory, and steady demand in top communities, many homeowners are still finding success when listing their homes.
So, should you sell now or wait?
Let’s explore the latest market dynamics in Houston to help you make the best decision.
Why Home Prices in Houston Are Still Strong
Despite headlines predicting a downturn, Houston-area home values continue to hold firm. According to the National Association of Realtors, U.S. home prices rose in most metro areas throughout 2022, and Houston was no exception.
In fact, the Houston Association of Realtors (HAR) reported that while sales volume has cooled compared to the record-breaking years of 2020–2021, median sales prices in many Houston suburbs remain elevated.
- Katy & Cypress: These master-planned communities still attract families and professionals seeking larger homes, newer construction, and access to highly rated schools.
- The Woodlands: Known for luxury homes and lifestyle amenities, this market has remained resilient, with buyers still willing to pay a premium.
- Sugar Land & Pearland: Demand for spacious suburban homes keeps prices stable, even as mortgage rates climb.
Even if appreciation slows, sellers listing now can often capture significant equity compared to pre-pandemic values.
Low Housing Inventory Creates Opportunity for Sellers
One of the biggest factors working in sellers’ favor is the low housing supply. In a balanced market, we’d expect 6 months of inventory. But Houston has consistently hovered at less than half of that, especially in high-demand neighborhoods.
What does this mean for you as a seller?
- Fewer homes on the market = less competition.
- Desirable homes in Katy, The Woodlands, and Spring still see multiple-offer situations.
- Many buyers are motivated to act quickly, especially before rates climb further.
According to Lawrence Yun, NAR’s chief economist, nearly 1 in 4 U.S. homes still sold above asking price in 2022 — and Houston continues to see this trend in popular neighborhoods.
Rising Interest Rates Are Shaping Buyer Behavior
The Federal Reserve has raised interest rates multiple times in the past year to combat inflation. Mortgage rates, which were once below 3%, have now more than doubled.
For buyers, this means higher monthly payments and less purchasing power.
- Entry-Level Buyers: First-time homebuyers may step back temporarily, as higher rates push some out of the market.
- Move-Up Buyers: Sellers in Cypress or Spring looking to move into larger homes may feel squeezed if they’re also buying.
- Luxury Buyers: Wealthier buyers in The Woodlands, River Oaks, or Sugar Land are less rate-sensitive, meaning high-end properties are still moving.
If you’re selling a starter home, now may be the time to act before buyer demand cools further.
Why Houston Is Different From 2008
Many homeowners worry about a repeat of the 2008 housing crash. But today’s conditions are very different:
- Lending standards are stricter, preventing risky loans.
- Buyers have higher credit scores and more stable income documentation.
- Equity levels are much higher — most Houston homeowners have gained significant equity since 2019.
This isn’t a bubble fueled by bad lending. It’s a market shift caused by interest rate changes — which means homeowners with equity are in a much stronger position than in past downturns.
Should You Sell Your Home Now or Wait?
The right decision depends on your goals.
But here are some key questions to consider:
- Is your neighborhood still seeing multiple offers? If so, conditions are still favorable.
- Do you have strong equity? Many Houston-area sellers can sell for more than they paid just a few years ago.
- Are you moving up or downsizing? If you’re selling and buying, timing matters. Selling now locks in equity, while waiting may expose you to more buyer competition later.
- Do you own a starter home? Demand may cool fastest for entry-level homes, so selling sooner could be smarter.
Neighborhood Spotlight – Where Homes Are Selling Fast
- Katy, TX: Known for schools, shopping, and family-friendly communities. Newer subdivisions like Elyson and Cane Island continue to attract interest.
- Cypress, TX: Bridgeland and Towne Lake remain top master-planned communities with steady demand.
- The Woodlands: Luxury homes near Hughes Landing and Creekside Park are still commanding premium prices.
- Sugar Land: Telfair and Riverstone continue to draw buyers seeking larger homes with quick access to Houston.
- Spring & Tomball: Affordable options near ExxonMobil campus keep buyer interest steady.
Final Thoughts – Why Timing Matters
The Houston market is shifting, but sellers still have a valuable window of opportunity. Prices are steady, inventory is low, and buyers remain active in top suburbs.
If you wait too long, you may face more competition, fewer buyers, and softer prices. Selling now could help you maximize your return before the market rebalances.
Houston’s market is shifting — but sellers still have the advantage. Reach out to Jennifer Yoingco, REALTOR®, and her team, The Houston Suburb Group. They’ll help you get ready to EXPERIENCE LIVING IN HOUSTON TEXAS!
📌 FAQs
Q: Is Houston in a housing bubble?
No. Unlike 2008, today’s market is built on solid fundamentals, stricter lending standards, and higher equity levels.
Q: Are Houston home prices expected to fall in 2023?
Analysts predict slower appreciation, with some price corrections possible, but Houston’s strong economy and population growth keep demand steady.
Q: Which Houston suburbs are selling fastest?
Katy, Cypress, The Woodlands, and Sugar Land remain strong thanks to master-planned amenities, schools, and steady demand.
Q: Should I sell my starter home now?
Yes, if you’re considering it. Rising rates are reducing affordability for first-time buyers, so acting sooner may help you capture more offers.
Q: Will higher mortgage rates hurt all sellers?
Not equally. Entry-level markets may cool faster, but mid-range and luxury homes in Houston suburbs are still in demand.
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