Houston, TX 77004 Real Estate Market Report

ZIP Code: 77004
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

---

Executive Overview

As of February 2026, the real estate market in Houston, TX (ZIP: 77004) is characterized by a median sold price of $390,495, reflecting a notable adjustment in market value. The neighborhood has decreased 8% since 2022, indicating a downward trend in property values. This decline in sold prices suggests that sellers may need to recalibrate their expectations in light of current market conditions.

Transaction activity appears to be moderated, with median days on market reaching 189 days, which points to slower sales velocity. Elevated inventory levels relative to sales activity indicate excess supply, contributing to a neutral market temperature. While interest rates remain elevated, the local economy continues to provide some support, and the median market rent stands at $1,722, suggesting ongoing rental demand despite the broader price adjustments.

---

Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

---

Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

---

Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

---

Property Taxes

---

Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

---

Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Houston TX 77004 market average around 5.875% to 6.09%, which is notably lower than the 6.87% average from one year ago, presenting a cost opportunity for refinancing.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

---

Key Findings

1. The median sold price of $390,495 indicates a significant decrease in property values, necessitating a reassessment of seller expectations.

2. With a median days on market of 189, properties are experiencing slower sales velocity, impacting overall market liquidity.

3. The median listing price of $434,000 presents a notable gap compared to sold prices, indicating potential pricing friction in the market.

4. Current market conditions reflect an elevated inventory relative to sales activity, suggesting excess supply in the area.

5. Despite the challenges, the median market rent of $1,722 remains robust, indicating sustained rental demand in the Houston, TX (ZIP: 77004) market.

---

Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.