Existing Home Sales Rise in May: What High Mortgage Rates Mean for Conroe & The Woodlands Real Estate

by Bren Brewer

The U.S. housing market saw a slight lift in May, with existing home sales edging up by 0.8%, according to the National Association of Realtors and reported by Reuters. Sales reached an annualized rate of 4.03 million units—a positive sign for a market still challenged by high mortgage rates and tight inventory.

However, May’s numbers were still the slowest for this month since 2009, showing that many buyers and sellers remain cautious.

So what does this mean if you’re buying or selling real estate in Conroe, The Woodlands, Spring, Magnolia, or greater Montgomery County? Let’s break it down.

📈 National Housing Market Update: Key Trends in May 2025

✅ Why sales rose slightly:

More homeowners are listing, testing the busy summer real estate market.
Some buyers jumped in early, hoping to lock in deals before mortgage rates shift again.

❌ Why sales aren’t climbing faster:

The average 30-year mortgage rate is still around 7%, keeping many would-be buyers on the sidelines.
Many current homeowners are staying put, locked into lower rates.
Affordability challenges persist, especially for first-time buyers and move-up buyers.

Key takeaway: Even with more listings, high borrowing costs mean buyers face higher monthly payments—and sellers can’t rely on frenzied bidding wars to push home prices sky-high.

🏡 What Buyers Should Know in Conroe, The Woodlands & Surrounding Areas

Here in Conroe, The Woodlands, Spring, Magnolia, and nearby communities, the same trends hold true:

✔️ More Inventory: More homes are hitting the market compared to this spring, giving buyers more choices in popular neighborhoods like Woodforest, Grand Central Park, and Alden Bridge.

✔️ Builder Incentives: New home builders in Montgomery County are offering incentives like closing cost credits and mortgage rate buydowns to attract buyers.

✔️ Possible Summer Rate Shifts: If mortgage rates dip this summer, more buyers may jump back in, increasing competition for move-in-ready homes.

Smart buyer tips:

Get pre-approved with a trusted local lender to understand your true budget.
Factor in today’s mortgage rates and monthly payments—know where you’re comfortable.
Consider new construction incentives as an option if resale inventory is tight in your price range.

🏠 What Sellers Should Know

If you’re selling a home in Conroe, The Woodlands, Spring, or Magnolia this summer, remember: this isn’t the hot pandemic market of 2021.

✔️ Presentation Matters: Clean, staged, and move-in-ready homes still sell quickly—even with mortgage rates around 7%.

✔️ Price Right: Overpricing is a mistake. Buyers compare your home with similar listings and new builds.

✔️ Be Flexible: Consider offering incentives or covering part of the buyer’s closing costs to attract offers.

🔍 Local Outlook for Summer 2025 in Montgomery County

Inventory is up slightly in Conroe, Spring, Magnolia, and Montgomery, but the best homes—especially those in sought-after school districts like Conroe ISD and Magnolia ISD—are still moving fast.

Some sellers are choosing to wait for rates to drop, which could mean less competition for you if you list now.

Keep an eye on the Federal Reserve: Any news of rate cuts will likely spur more buyers into action.

✅ Bottom Line: Stay Informed & Be Ready

High mortgage rates remain the biggest headwind for buyers and sellers in Conroe TX, The Woodlands TX, and the broader Montgomery County real estate market. But motivated buyers and sellers who stay informed and act strategically can still find opportunities.

📞 If you’re thinking about buying or selling in Conroe, The Woodlands, or surrounding areas, let’s connect. I’m here to help you navigate today’s market and get the best possible results.