Published October 2, 2026 in Market Update

Montgomery sales rose even with rates above 7%

By Stacey Brown

Real estate, Montgomery, TX

Rates topped 7% for the first time since January 2025, according to Realtor.com. That is a real headwind. And yet buyers in Montgomery kept showing up.

The Real Estate Data Aggregator counted 854 homes sold across ZIPs 77356 and 77316 in the three months ending July 31, 2026. That is up 46% from the same months a year before. Goodness, that is a meaningful jump for a market carrying rates above 7%.

Pending sales tell a similar story. The Real Estate Data Aggregator recorded 809 pending sales across Montgomery in that same period, up 16.4% year over year. Contracts being signed now will close in the weeks ahead. That pipeline is real.

The two ZIP codes tell different stories

Montgomery spans two ZIP codes, and they are not moving in lockstep. It is worth knowing which one your home sits in.

In ZIP 77356, the Real Estate Data Aggregator put the median sale price at $384,500, up 1.5% from a year ago. Homes sold in 63 days at the midpoint. Sellers received 97.3% of list price on average. Supply dropped to 4.9 months, down 2 months from a year before.

In ZIP 77316, the median sale price reached $410,371, up 11.1% from a year ago, according to the Real Estate Data Aggregator. Sales volume jumped 62.9%. Homes took a bit longer at the midpoint, 78 days, and sellers received 95.9% of list price. Supply there came in at 4.7 months.

Days on market did stretch in both ZIPs compared with a year ago. In 77356 it was 6 days longer. In 77316 it was 24 days longer. Pricing carefully from the start matters more when buyers are taking their time.

What the national picture adds

Nationally, Realtor.com reported that 20.8% of listings took a price cut in September, the highest share since October 2022. That is worth knowing. Montgomery's own numbers show sellers here are still closing near list price, but the national trend is a reminder that pricing right the first time is the smart move.

The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. Montgomery's median prices moved in a similar direction, with 77316 well ahead of that national pace.

Quick signs of demand

Nearly 1 in 5 homes in ZIP 77356 went under contract within two weeks of listing. The Real Estate Data Aggregator put that share at 19.9%, up 1.1 points from a year ago. In ZIP 77316 it was 12.7%, though that was down 8.8 points from the prior year. Some homes are still moving fast. Price and condition drive which ones.