Published October 18, 2026 in Market Update

Montgomery sales rose even with rates above 7%

By Lisa Marie Sanders

Real estate, Montgomery

You are watching rates climb and wondering if anyone is still buying. Here is what the numbers say. Deals are getting done. More of them than last year.

The Real Estate Data Aggregator counted 736 homes sold in ZIPs 77356 and 77316 together, the three months ending August 31, 2026. That is up 24.3% from the same months of 2025. Realtor.com reported rates climbed above 7% for the first time since January 2025. Buyers kept moving anyway.

What is happening in each ZIP code

In 77356, the Real Estate Data Aggregator counted 270 homes sold, up 10.7% from a year ago. The median sale price held at $370,000, unchanged from 2025. Sellers got 97.2% of their list price on average, up 0.9 points from last year. Not every home sold fast: the median was 72 days on market, 3 days longer than last year.

In 77316, the Real Estate Data Aggregator counted 466 homes sold, up 33.9%. The median sale price rose to $421,275, up 12.3%. Days on market climbed to 89, which is 31 days longer than last year. More homes, more choice, more patience needed.

Speed: who is going fast

In 77356, the Real Estate Data Aggregator found 21.2% of homes went under contract within two weeks of listing. That is up 7.2 points from a year ago. In 77316, it was 12.2%, down 5.9 points. The two ZIPs are moving at different speeds. Price right and 77356 can still move quickly.

Supply is up, but demand kept pace

The Real Estate Data Aggregator counted 1,429 homes for sale across Montgomery, up 13.1% from a year ago. New listings rose 18.6% to 1,077. Pending sales came in at 747, up 10.2%. More sellers entered. More buyers followed. Supply grew, but so did the pipeline.

Six months of supply is roughly balanced ground. The Real Estate Data Aggregator put 77356 at 6.2 months, down 0.5 from last year. ZIP 77316 came in at 5.8 months, down 0.6. Both moved in the same direction: tighter, not looser.

The rate picture, as of October 18, 2026

Realtor.com reported rates climbed above 7% for the first time since January 2025. CNBC reported that Fannie Mae forecast the 30-year fixed rate at 7.4% in the fourth quarter of 2026 and 7.5% through 2027. Higher payments are real. Montgomery buyers are still showing up.

Nationally, Realtor.com reported that 20.8% of listings took a price cut in September, the highest share since October 2022. That is a wider market signal. Montgomery's own numbers, from the Real Estate Data Aggregator, show sellers still getting 97.2% of list in 77356 and 96.8% in 77316. Local and national are telling different stories right now.