Everyone knows the last 6 years in the real estate market have been WILD, and the last few have certainly been a challenge. Buyers and sellers have been hanging onto the back of a runaway train, and frankly people are tired. I get it - the daily, weekly, and monthly changes are exhausting, and its challenging to make decisions while you feel like the ground is constantly shifting beneath your feet.
But here's the thing - to characterize Houston as a "bad market" is to miss the big picture altogether. Houston has had over 100,000 properties sell in 2023, 2024, and 2025, which is the same volume we had in 2019, long before COVID blew through our market. Deal structures certainly look different than they used to, but this is an extremely productive sales environment.
Talking to today's buyers is a lot like talking to someone moving trough the grief cycle, and most of them are stuck in the "bargaining" phase:
- "I'll just wait another year"
- "Interest rates will go down"
- "I'll rent until prices drop"
- "I'll buy when I don't have to compete"
The thing is none of these move you forward, and most of the time the thoughts driving these statements are total myths. In this post, we'll bust. those myths and give you the confidence to move forward.
"I'll just wait another year"
This is by far the most common objection I've heard since COVID started. But here's the thing - 2025 was objectively difficult, but it ended on a positive note. Home prices were on average up 1%, and that was while the news media and other outlets were professing an impolosing and impending doom. It just didn't happen. And if you take the longer view, the Houston real estate market saw average home prices increase 13.3% over a 5-year period. That 5-year period wasn't all sunshine either - the back half of 2022 thorugh 2025 have been challenging.
So far in 2026, we've seen prices up or statistically flat over the same period last year, and I suspect that when we look at the full year of 2026 vs 2025, prices will be up again. In fact, Compass's chief economist, Mike Simonsen just released a market update this week saying that nationwide, the rate of inventory coming online began to slow down. As less inventory comes online and more buyers enter the market, eventually prices will go up. Waiting has a cost.
"It's a buyer's market"
The second most frequent comment I get is "well, it's a buyer's market so I'll get a discount on the price for sure!" I have to say this is a tough one because sometimes buyers are partially right, but most of the time, that doesn't work out.
- Nearly all the buyer transactions I've had in 2026 are multiple offer situations. Yes, there is quite a bit listed, but buyers are pickier than EVER, and guess what? They like the same things: newer roofs, upgraded HVACs, refreshed paint, nice neighborhoods, and low taxes. If you like it, they do too.
- Certain pockets will always be attractive, but the neighborhoods that struggle will certainly get hit, and be subject to more negotiable terms.
- If you treat this market exclusively like a buyer's market, you are likely going to miss out on the home you actually want.
"I don't want to compete"
This one goes hand in hand with the statements above. The only way you're going to avoid competition is if your goals go against the grain of what the typical consumer wants. Yes, there are always listings that get "stuck" due to something fairly simple like slight overpricing, bad photos, a need for a new roof or HVAC, but more times than not, what buyers are actually willing to spend their hard earned hundreds of thousands of dollars on is something inherently attractive. Again, if you like it, someone else with great taste probably likes it too.
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As your trusted real estate resource in Katy, I'm here to help you find your dream home. Thinking about making the move? Contact me today!
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Carolyn Bauerschlag
Broker Associate, CPA
Brokered by Compass RE Texas LLC
