Happy New Year from all of us at Laura Powers Property Group!

As we head into 2026, we wanted to share a snapshot of key indicators shaping the Houston real estate market—and the outlook remains encouraging.

Houston continues to show strength and stability. The market is expected to remain balanced, currently with a healthy inventory level of five months. This marks a shift away from a purely seller-driven market, giving buyers more options, greater negotiating power, and fewer multiple-offer situations.

Looking ahead to interest rates, Fannie Mae projects rates to trend toward 5.9% by Q4 2026, while the Mortgage Bankers Association (MBA) anticipates rates remaining in the low 6% range.

Houston home sales are currently outperforming 2019 levels, which industry expert Dr. Ted Jones identifies as the last “normal” year. By comparison, the overall U.S. housing market is still operating about 20% below normal levels—highlighting Houston’s relative strength.

Population and economic growth also continue to fuel our market. Houston ranks as the 9th largest net inbound city in the U.S. according to U-Haul data, reflecting strong regional migration. Major corporations are continuing to invest here, including Eli Lilly, Foxconn, and Inventec.

Over the past decade, our population has grown by 1.3 million, making Houston the youngest major metro area in the country. Our economy has also diversified well beyond oil and gas, with strong growth in healthcare, technology, and shipping.

I am encouraged by Houston’s growth, sustainability, and long-term attractiveness. There are many good things ahead—and I am looking forward to what’s to come.