Published October 18, 2026 in Market Update

Montgomery sales rose even with rates above 7%

By Stacey Brown

Real estate, Montgomery, TX

Goodness, that number surprised even me. Rates crossed 7% for the first time since January 2025, according to Realtor.com. Most people would expect that to slow things down. In Montgomery, sales went the other way.

The Real Estate Data Aggregator counted 736 homes sold across Montgomery's two ZIP codes in the three months ending August 31, 2026. That is up 24.3% from the same three months a year ago. Buyers are active here. That is the plain fact.

What the two ZIP codes each show

Montgomery covers two ZIP codes, 77356 and 77316. They tell somewhat different stories, so I want to walk through each one.

ZIP 77356: steady price, more buyers moving quickly

The Real Estate Data Aggregator counted 270 homes sold in ZIP 77356, up 10.7% from a year ago. The median sale price held at $370,000, unchanged from last year. Prices did not jump, and they did not dip. That kind of stability is worth noting.

One figure stood out to me in 77356. The share of homes going under contract within two weeks of listing rose 7.2 points, to 21.2%, according to the Real Estate Data Aggregator. That means more than 1 in 5 homes here found a buyer fast. A year ago that was much less common.

ZIP 77316: more sales, higher prices, and more choices

ZIP 77316 saw the bigger jump in sales. The Real Estate Data Aggregator counted 466 homes sold, up 33.9% from a year ago. The median sale price rose to $421,275, up 12.3%. Both of those are meaningful moves.

More homes came to market here, too. New listings in 77316 rose 13.8% to 619, and homes for sale climbed 21.1% to 879, per the Real Estate Data Aggregator. Buyers have more to choose from than they did last year. Homes are taking a bit longer to sell: the median was 89 days, which is 31 days longer than a year ago. Not every home sold fast, and pricing it right matters more with that much inventory.

The rate picture, and what it means here

Realtor.com reported that mortgage rates topped 7% for the first time since January 2025. Nationally, Realtor.com also found that 20.8% of listings took a price cut in September, the highest share since October 2022. And CNBC reported that Fannie Mae forecasts the 30-year fixed rate at 7.5% for all of 2027.

Those are real headwinds for buyers across the country. Yet the Real Estate Data Aggregator shows Montgomery's pending sales at 747 across both ZIP codes, up 10.2% from a year ago. Buyers are still making decisions here. That does not mean every home sells quickly, but it does mean the market is moving.

More listings came to market, and supply edged down

The Real Estate Data Aggregator counted 1,077 new listings across Montgomery in the three months ending August 31, 2026, up 18.6% from a year ago. More sellers chose to list. At the same time, months of supply fell in both ZIP codes: down to 6.2 months in 77356 and 5.8 months in 77316. More homes came to market, and buyers absorbed them.

What this means if you are selling

Buyers are out there. The Real Estate Data Aggregator shows 736 closings and 747 pending sales in just three months. That is real demand. But inventory is up 13.1% across Montgomery, so your home is competing with more choices. In 77316, homes took a median of 89 days to sell. Pricing well from the start is what separates the homes that move from the ones that sit.

What this means if you are buying

You have more homes to look at than buyers did a year ago. The Real Estate Data Aggregator counted 1,429 homes for sale across Montgomery. Sellers in both ZIP codes are averaging 96.8% to 97.2% of list price, so there is some room to negotiate, though not a lot. Knowing what a home is worth before you offer is still important.