HOUSTON — June marks the celebration of Homeownership Month, prompting a closer examination of the housing market in Houston.
Recent data from the Houston Association of Realtors (HAR) indicates a shift in the market dynamics.
Single-family homes in Houston now have a supply of 4.9 months, compared to just 3.6 months in spring 2024, signaling a transition to a buyer’s market.
In the first quarter of 2025, HAR discovered that 40% of households in the Houston area could afford a median-priced home.
Despite this positive statistic, there has been a noticeable decline in home closings compared to the previous month.
Cottar, the HAR Chair, explained, “Fewer homes closed last month than in April of ’24.
It wasn’t like buyers switched their priorities completely.”
The slight dip in closing numbers can be attributed to buyers adopting a more cautious stance.
Cottar noted, “It’s more like buyers just kind of went, ‘Wait a second, with everything going on, let’s just pause to see where these tariffs are going to go.’”
Current interest rates range between 6% and 7%.
However, a survey conducted by KB Home in June 2025 revealed that 83% of Americans still view homeownership as a critical milestone.
Real estate broker Dante Pickett commented, “At the end of the day, people are still buying homes every day, regardless of the market.”
Enih, a real estate agent assisting Pickett in purchasing his first home, highlighted that new construction homes often come with various incentives, including different interest rate programs.
Cottar provided advice for prospective buyers, suggesting they inquire about assuming existing low mortgage rates.
He pointed out, “Because if it is an FHA loan, that buyer might be able to assume that 3.5% or 4% mortgage rate if they can qualify.”
Additionally, buyers are in a position to negotiate with sellers to reduce the mortgage rates, making homeownership more accessible.
For example, buyers can secure a rate reduction for up to three years, potentially lowering payments by 3%.
Despite the current challenges, Pickett expressed optimism, stating, “We were able to qualify for more than what we maybe thought we could.”
He emphasized the importance of comprehensively understanding one’s financial situation before diving into home buying.
Finding the right real estate agent is crucial to navigating this process successfully.
Enih recommends assessing an agent’s experience and commitment level by asking about their years in the business and whether it is their full-time occupation.
Whether opting for a resale home with an existing interest rate or investing in new construction, prospective homeowners have a variety of options to consider.
Moreover, tax relief opportunities such as the homestead tax exemption can help lighten the financial load for new homeowners.
Enih noted benefits for new homes, including long warranties and energy-efficient appliances that could result in lower utility costs.
Prospective buyers should be aware that purchasing new lots and building from scratch generally incurs higher costs than acquiring inventory homes, which are already under construction.
Enih explained, “While that home is nearing completion, if nobody’s bought it yet, we’re able to get an even better discount.”
Owning a home brings a significant responsibility, as homeowners are tasked with managing major repairs and expenses independently.
Pickett reflected on the long-term advantages of homeownership, expressing the desire to have a property to pass down through generations.
His family is scheduled to move into their new home by the end of June.
When questioned about the attainability of the American dream of homeownership, Enih affirmed that it remains achievable for many.
He advised, “It’s always important to be careful who you pick as your real estate agent, because if you pick the wrong person, you can have a very horrible experience.”
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