KATY-FULSHEAR, Texas (Covering Katy News) — Whether you're thinking of buying, selling, or just curious about your home's value, here's what happened in the local housing market in 2025.
The Katy-Fulshear housing market shifted to a more normal pace in 2025 after several years of rapid price increases, with more homes for sale, lower priced inventory and homes taking longer to sell.
Despite these changes, more homes sold in 2025 than the previous year, suggesting buyers kept looking as the market became more favorable for them.
Sales increased despite slower market
Nearly 8,000 homes sold in 2025, a 7% increase over the previous year, according to data from the Houston Association of Realtors.
This increase came even though the market slowed down, showing that buyers remained interested in the area when conditions became more favorable.
Home prices dropped overall
The average home sold for about $430,000 in 2025, down about $20,000 from 2024.
However, this drop doesn't mean existing homes lost value. Instead, builders sold more lower-priced new homes, which pulled down the overall average. If you owned a home in 2024, it likely held its value.
Prices varied by area, with the Katy and Cinco Ranch area west of Grand Parkway showing median prices around $520,000.
New construction dominated sales
New construction homes accounted for a larger share of sales in 2025. Nearly 3,800 new homes sold, compared to about 3,100 the previous year. Sales of existing homes declined slightly.
The average price for new construction fell from about $436,000 to $400,000, while existing home prices remained relatively stable.
For buyers, this meant more options to purchase brand-new homes with the latest features and warranties, often at lower prices than the previous year. Builders were offering more competitive pricing to attract buyers in a slower market.
For sellers of existing homes, this created additional competition. They were competing not only with other resale homes, but also with builders offering new construction at similar or sometimes lower prices. This made it more important for existing home sellers to price their properties competitively and highlight advantages like established neighborhoods, mature landscaping and move-in ready condition.
More homes available to buy
The number of homes listed for sale increased significantly throughout 2025.
During the summer, more than 3,000 homes were available, compared to just over 2,000 at the same time in 2024. By December, about 2,300 homes were on the market — well above the previous year.
For buyers, this meant they could shop around without the pressure of bidding wars or making offers the same day they saw a home. For sellers, it meant they faced more competition from other listings and needed to price their homes competitively to attract buyers.
Homes stayed on the market longer
On average, homes took about two months to sell in 2025, slightly longer than in 2024.
Most areas saw homes sitting on the market longer than the previous year.
An exception was north Katy west of Grand Parkway, where homes sold faster — dropping from 76 days to 66 days — helped by strong sales of new construction.
For buyers, longer selling times meant less urgency and more opportunity to negotiate. For sellers, it meant being prepared to wait longer for the right buyer and potentially negotiating on price.
The overall impact to buyers and sellers
Buyers had more negotiating power in 2025 than in recent years, with more homes to choose from and less pressure to make quick decisions.
Sellers found that pricing homes accurately became more important, and well-priced homes in desirable locations continued to sell, though patience was often required.
Rather than a market crash, 2025 represented a return to more normal conditions after years of rapid price increases and homes selling quickly.
Looking ahead to 2026
The Katy-Fulshear housing market is expected to remain steady in 2026.
For buyers, a steady market means they can take their time searching for the right home without worrying about rapidly rising prices or fierce competition. For sellers, it means they'll need to be realistic about pricing and patient about how long it takes to sell, since homes won't fly off the market like they did a few years ago.
This article was written by Katy realtor Jared Greenberg. Analysis is based on full-year data for the combined Katy-Fulshear market area from the Houston Association of Realtors. See Jared's latest listings.
Jared Greenberg
Jared Greenberg is a Katy based Realtor who provides monthly expert analysis of the Katy-Fulshear Real Estate market for Covering Katy News.