Edit: It is officially Sturgis going to Houston, with a conditional draft pick in 2014 coming back, which could mean anything really in MLS.
So, according to Jose de Jesus Ortiz of the Houston Chronicle on twitter, Houston Dynamo have made a trade for a 24 year old Defensive Midfielder, and there's really not all that many of those in MLS, and Nathan Sturgis just happens to be one of them.
Over at Dynamo Theory they have a little more insight, and some other options, but it's no secret that Sturgis hasn't really fit into Aron Winter's plans all along, and he's currently behind quite a few others for a Defensive Midfield spot, so a trade would make sense. The conditional pick reported to be coming the other way (probably nowhere near the first round pick Earl Cochrane gave up for him), along with the cap space created is probably the best we could hope for at this stage.
All pure speculation at this point, but hey, that's more than we've had in a while, so why not go with it until the trade is announced. I'll update here with whatever news comes along.