Texas Housing Market Update: Home Prices, Inventory, and Trends in 2026

Texas’s housing market is showing signs of stabilization, but conditions vary across the state. While some areas are experiencing stronger sales activity, others continue to see price adjustments and elevated housing inventory.

For buyers, sellers, and real estate investors, the current market presents a different landscape from the highly competitive conditions of recent years. More available homes in many areas may give buyers additional choices, while sellers need to pay close attention to local pricing and competition.

Current Texas Housing Market Conditions

The Texas Real Estate Research Center’s September 2026 Texas Housing Insight report, based on July market data, found that statewide closed home sales increased 2.2% year over year. The statewide median sale price was $339,000, unchanged from July 2025.

Other indicators showed a market adjusting gradually:

• Sales activity: Texas recorded 32,306 closed sales in July, with year-to-date sales 3.2% higher than the same period in 2025.
• Home prices: The statewide price index was down 0.2% year over year, an improvement from the larger declines recorded in previous months.
• Days on market: Homes sold in July spent an average of 63 days on the market, compared with 61 days a year earlier.
• Seller price reductions: The median price cut was approximately $13,000, or 3.6% of the initial listing price.

These figures suggest that prices were stabilizing rather than rising consistently across the state.

Inventory: More Choices in Some Markets

Housing inventory remains an important part of the Texas market story. Instead of a statewide shortage, recent data points to relatively elevated supply, with significant differences among metropolitan areas.

According to TRERC, active inventory reached approximately 156,000 listings at the end of July 2026, representing a 2.2% increase from June. The statewide months-of-supply measure was 5.5 months.

Conditions differed by metro:

• Austin: The market continued to experience price pressure, although some indicators showed improvement.
• Dallas–Fort Worth: Inventory and pricing conditions varied between the Dallas and Fort Worth areas, with some signs of price stabilization.
• Houston: July marked the first month in a year without a year-over-year decline in the local price index.
• San Antonio: Inventory remained relatively elevated, with a reported 6.2 months of supply in July.

Months of supply is a common measure of how long it would take to sell the available homes at the current sales pace, assuming no new listings entered the market. A six-month level is often used as a broad reference for a balanced market, but it is not a universal dividing line for every neighborhood or property type.

What the Market Means for Buyers and Sellers

First-time homebuyers

Buyers who have struggled with affordability may find more opportunities in areas where inventory is higher and homes are taking longer to sell.

Before making an offer, first-time buyers should compare recent closed sales, evaluate monthly ownership costs, and consider how much flexibility a seller may have on price or closing terms. Cash offers can affect competition for certain properties, but they do not define the conditions of every Texas market.

Sellers

Sellers may need to adjust expectations in markets where buyers have more options. Accurate pricing, property condition, and marketing can influence how quickly a home sells and whether the seller receives offers near the asking price.

Recent price reductions across Texas also show why sellers should review competing listings and recent sales before setting a price.

Real estate investors

Investors should evaluate acquisition costs, rental income, operating expenses, financing, insurance, property taxes, and potential vacancy. A market with slower price growth may create opportunities for buyers who can negotiate, but a lower purchase price alone does not guarantee a strong investment return.

Local conditions matter. An investment strategy that works in one Texas metro may not translate directly to another.

What Could Shape the Texas Market Through the End of 2026?

Several factors will influence housing activity during the remainder of the year:

• Mortgage rates: Higher borrowing costs can limit purchasing power and affect buyer demand.
• Inventory levels: Changes in new listings and active supply will influence competition and seller pricing.
• Employment and population trends: Local economic conditions can affect household formation and housing demand.
• New construction: Builder activity may provide additional options in some markets and price ranges.
• Affordability: Home prices, financing costs, insurance, and property taxes all contribute to the cost of owning a home.

Forecasts should be treated cautiously. Current data supports a picture of gradual adjustment and possible stabilization, but it does not establish that prices will rise statewide or that inventory will remain constrained through the end of 2026.

Practical Tips for Texas Buyers and Sellers

For buyers and sellers navigating the current market:

• Review local market data. Statewide figures can conceal significant neighborhood-level differences.
• Compare sold prices, not just asking prices. Completed transactions provide a more direct view of what buyers are paying.
• Monitor inventory and days on market. These measures help indicate how much competition buyers and sellers may face.
• Budget for total ownership costs. Consider mortgage payments, taxes, insurance, maintenance, and other expenses.
• Work with local professionals. Real estate agents and market specialists can provide current neighborhood-level information.

The Bottom Line

Texas’s housing market is not experiencing a uniform statewide price surge or a broad-based inventory shortage. Recent data shows sales activity improving, prices stabilizing in some areas, and inventory remaining relatively elevated.

For buyers, sellers, and investors, decisions should be based on the conditions of the specific city, neighborhood, and property type—not broad assumptions about the entire state. Tracking current sales, inventory, and affordability indicators can help households make more informed real estate decisions.