In North Houston, Not All Homes Are Moving at the Same Pace

Written by:

Alejandra Rodriguez

Date:

30 May 2026

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Walk through a new subdivision in Magnolia on a Saturday afternoon, and you might be surprised by the activity. Model homes are busy. Buyers are comparing floor plans. Builders are offering rate buydowns and free closing costs. Then drive a few streets over to a resale home that’s been sitting for two months with a price cut and a lockbox – and you’ll understand exactly what kind of market North Houston is right now.

It’s not slow. It’s split. And knowing which side of that split your home – or your search – falls on makes all the difference.

Melissa Spencer, team leader and broker associate at The Spencer Team (RE/MAX Integrity), has been working this market for over a decade. She sees the divide clearly. “Each area is a little bit different,” she says. “There are lots and lots of little pockets around the neighborhoods.”

What’s Hot Right Now

Acreage properties are moving faster than almost anything else in Montgomery County. Half-acre, one-acre, and two-acre lots with custom homes – especially in the Montgomery and Magnolia areas – are drawing strong interest from buyers who want distance from their neighbors. Compared with similarly sized properties within the Houston city limits, where prices can reach into the millions, these homes offer space at a much more accessible price point.

The $500,000-$1.25 million range is also performing well. Buyers in this segment have greater financial flexibility and are less sensitive to rate fluctuations, helping keep activity steady.

New construction across the board is a major draw. Spencer’s team has seen the share of buyers choosing new builds climb from a consistent 20-25% in prior years to roughly 30-40% this year. Builders are sweetening deals with incentives that resale sellers can’t match: rate buydowns to around 5%, one- to two-point buydowns, and closing cost coverage. For a first-time buyer trying to make the numbers work, that kind of package is hard to walk away from.

What’s Sitting Longer

The supply picture looks very different below $500,000. Homes under that threshold in active new-construction neighborhoods are the toughest sell right now – not because of the homes themselves, but because of volume. Builders have been delivering enormous quantities of inventory at that price point, and the sheer supply is slowing things down for resale sellers competing in the same neighborhoods.

Spencer is blunt about the challenge. Builders are offering lower interest rates, buydowns, and closing-cost coverage that individual sellers cannot match. “Resale competing against builders is tough,” she says.

If you own a resale home in a neighborhood that’s still being built out – and some of these communities have three-to-ten-year build timelines – you’re going up against a well-funded competitor with a marketing budget and a design center. That doesn’t mean you can’t sell; it means you need to be strategic.

The Woodlands vs. Everywhere Else

The contrast between The Woodlands and the surrounding communities illustrates how localized this market has become. With only about two and a half months of inventory, The Woodlands is one of the tightest submarkets in the region. Sellers there are getting close to 97% of the asking price, and homes are moving quickly. Most Woodlands homeowners locked in 3% mortgages in 2020 and 2021 and aren’t in a hurry to give those up, keeping supply constrained and prices firm.

Outside The Woodlands – in Tomball, Magnolia, Montgomery, Conroe, and Willis – days on market stretch to 80-100 days. Buyers have more choices, more time, and more negotiating power. Willis, in particular, is seeing a wave of new large-scale neighborhood development as builders push further north.

Act on Market Realities

For buyers under $500,000: You have options right now, possibly more than at any point in recent memory. Compare new construction incentives carefully against resale pricing – sometimes a resale home in a finished neighborhood offers more stability and a faster move-in timeline, even without the builder perks.

For buyers in the $500,000-plus range, acreage and custom-home communities in Montgomery and Magnolia are worth a serious look. These properties are moving, but not so fast that you can’t take time for due diligence.

For resale sellers in active build zones: Pricing is everything. Spencer is direct about this – the market has no patience for overpricing. Homes that come in even 3 to 5% above where buyers are shopping will sit, go stale, and often sell for less than a well-priced listing would have fetched on day one. Lean on staging, professional photography, and aggressive marketing to stand out. Consider offering a closing cost credit to level the playing field with builders.

For small investors, acreage and the mid-to-upper price tiers are showing greater resilience than the crowded sub-$500,000 segment. If you’re evaluating a buy-and-hold in this market, look at neighborhoods that are mostly built out rather than those still mid-construction.

Looking ahead, this split is unlikely to close soon. Builder incentives show no signs of disappearing while inventory remains high below $500,000, and the lock-in effect in The Woodlands will persist as long as current rates stay well above 2020 – 2021 levels. Buyers and sellers who understand which pocket they’re operating in – and price accordingly – will find real opportunity. Those who treat North Houston as a single market will struggle.

About the Expert: Melissa Spencer is Team Leader and Broker Associate at The Spencer Team with RE/MAX Integrity, serving Montgomery County and the north Houston corridor for a decade.

This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.