77407
Houston, Texas

ZIP code 77407 shows a median sale price of $392,428 as of February 2026, reflecting a modest 4.2% year-over-year increase that trails Houston's historical appreciation rates. Homes are averaging 84 days on market, indicating slower absorption than the metro's pre-pandemic norm of 45-60 days. Only 5% of properties are closing above asking price, signaling minimal competition and weak bidding pressure that favors transactional negotiation over aggressive offers.

This environment benefits price-sensitive primary homebuyers who can leverage the 84-day inventory window for inspection contingencies and seller concessions. The 5% above-ask metric suggests buyers retain negotiating power rarely seen in tighter markets, while the $392K entry point targets middle-income households. Sellers face headwinds and should price within 2-3% of recent comparable sales to avoid extending DOM beyond the current 84-day average.

The PropIQ score of 55 signals caution, suggesting price momentum may stall or compress in coming quarters. The combination of elevated DOM and minimal over-ask activity indicates demand fragility that warrants monitoring local employment data and mortgage rate movements. Buyers should watch for increased price reductions across listings, while sellers considering 2026 transactions may benefit from listing before potential softening accelerates beyond current metrics.