May 2026 Market Update: Strong Spring Activity Continues in Greater Houston

May delivered exactly what we expected: strong buyer activity, confident sellers, and continued momentum across Greater Houston and Montgomery County real estate. Spring is the prime selling season, and this year has not disappointed. Whether you are thinking about selling, buying, or simply want to understand what is happening in your neighborhood, here is what The Patton Group is seeing on the ground across our service areas.

May Inventory Tightening, Buyer Demand Strong

May inventory began to tighten as the month progressed. Active listings decreased compared to April, yet qualified buyer interest remained exceptionally strong. This combination continued to create favorable conditions for sellers willing to list during peak spring season.

We saw particularly strong activity in the $400K to $750K price range, where new construction and newer resale homes continued to move quickly. Luxury properties on Lake Conroe and waterfront estates attracted serious buyers, with multiple offers becoming common on premium properties.

New Construction Market Remains Competitive

New construction communities across Magnolia, Tomball, and The Woodlands are seeing strong absorption. Many popular floor plans and communities are selling out ahead of schedule. For buyers interested in building new, the time to act is now. Choosing premium communities early provides the best lot selection and customization options.

Pro tip: If you are considering new construction, have The Patton Group review your builder contract before you sign. Understanding warranty coverage, timelines, and upgrade costs can save thousands and protect your investment.

Lake Conroe Waterfront Remains a Seller's Market

Waterfront inventory on Lake Conroe remains tight. Homes with direct water access, updated bulkheads, and private docks continue to command premium prices. We are seeing multiple offers on quality waterfront properties within days of listing.

For sellers with waterfront properties: May is an excellent time to list before summer vacation season diverts buyer attention. For buyers seeking waterfront: expect competitive bidding and have your financing and inspection process ready to move quickly.

Interest Rates Hold Steady, Financing Competitive

Mortgage rates held relatively steady through May, remaining in the mid-to-upper 6% range for conventional financing. Buyer demand continued strong despite rates, indicating that qualified buyers understand the value of locking in rates before potential increases.

For buyers in the market, now is the time to act. Rate forecasts suggest potential increases heading into summer. Buyers with strong credit and solid down payments should prioritize getting pre-approved and moving quickly on quality properties.

Montgomery County Continues to Attract Relocating Families

School systems like Conroe ISD and Montgomery ISD continue to be major draw factors for families relocating to the Houston area. We are seeing strong buyer interest from out-of-state families and corporate relocations. Properties in top-rated school districts are experiencing notably higher demand.

For sellers in desirable school districts: highlight your schools prominently in listings. For buyers: understand school ratings and community reputations before committing to a neighborhood.

The Patton Group Advantage

In a competitive spring market like May 2026, representation matters. Whether buying or selling, you need agents who understand current market conditions, have deep community knowledge, and can navigate negotiations with sophistication and confidence.

Susan and Roger Patton bring decades of combined real estate experience, RE/MAX Integrity's global resources, and a deep commitment to their clients' success. From evaluating offers on Lake Conroe waterfront homes to navigating builder contracts on new construction, we have the expertise and connections to deliver results.

Ready to Make a Move?

Whether you are thinking about selling before summer, buying your dream home, or simply want to understand what is happening in your market, we are here to help. Contact The Patton Group today for a confidential market analysis, buyer consultation, or seller strategy session.