77054
Houston, Texas

The 77054 market shows significant distress with a median sale price of $126,525, down 22.4% year-over-year as of February 2026. Homes average 91 days on market, nearly triple the typical Houston pace, while only 2% of properties sell above asking price. This combination of declining values, extended marketing periods, and virtually no competitive bidding indicates substantial buyer leverage and seller capitulation across the ZIP code.

Value-focused investors with cash positions benefit most from these conditions, as the 22.4% price decline creates entry points below recent comparables. The 91-day absorption rate and 98% of sales at or below list suggest negotiating power exceeds 15-20% in many transactions. Traditional owner-occupant buyers face less competition but should scrutinize why values contracted so sharply in this specific pocket of Houston's medical center area.

The PropIQ score of 41 signals continued caution through mid-2026, suggesting the price decline may not have fully stabilized. With days on market elevated and virtually no above-ask sales, further downward price discovery appears likely before absorption normalizes. Buyers should monitor whether DOM begins contracting below 75 days and above-list sales exceed 5%—both necessary indicators that the scoring pressure toward 50 is materializing.