Key Takeaways

Key Takeaways Moderate Price Growth: Texas home prices up 4.2% year-over-year with median around $385,000 — sustainable growth replacing the wild increases of recent years Two-Speed Market: Clean, updated homes sell in 15-25 days while problem properties can sit 60-120+ days, creating opportunities for cash buyers and off-market solutions Regional Variations: DFW shows consistent activity, Austin cooling from peaks, Houston recovering, San Antonio most affordable — each metro has distinct dynamics Continued Demand: Population growth of 470,000+ people in 2025 supports housing demand, but today's buyers are more selective and want move-in-ready properties or significant discounts for fixer-uppers

Texas Housing Market 2026: What 27 Million Texans Need to Know About Home Prices and Sales

Look, I've been watching the Texas real estate market for over two decades, and let me tell you — what's happening right now is something else. Just got off the phone with a homeowner in Austin yesterday who said, "Uncle Charles, I don't know if I should sell now or wait." Sound familiar?

Here's the deal: Texas isn't just big in size, it's big in opportunity. But with that comes complexity. Whether you're sitting on a property in Houston that needs work, dealing with a Dallas home you inherited, or trying to figure out what your San Antonio house is really worth, you need the straight facts.

I'm going to break down exactly what's happening in our state's housing market right now — no fancy real estate speak, just the truth from someone who's seen it all.

Texas Home Prices: The Numbers Don't Lie

As of February 2026, the median home price in Texas sits at approximately $385,000 — that's up about 4.2% from this time last year. Now, before you get too excited or too worried, remember that Texas is massive. We're talking about everything from $200,000 homes in smaller towns to million-dollar properties in the major metros.

Here's what I'm seeing in the major markets:

• Austin: Median around $565,000 (still the priciest, but growth has slowed)
• Dallas-Fort Worth: Median around $425,000 (steady demand, steady growth)
• Houston: Median around $350,000 (energy sector recovery helping)
• San Antonio: Median around $315,000 (still the most affordable major metro)

I had a seller in Fort Worth tell me last month, "I bought this place for $180,000 in 2015, and now it's worth $400,000." That's Texas for you — but remember, not every property participates in these gains equally. The ones with problems? That's where HOMESELL USA comes in.

Inventory Levels: More Homes, But Still Not Enough

Texas housing inventory has improved to about 3.2 months of supply as of February 2026. That's better than the 1.5 months we saw during the crazy times, but we're still below the 6 months that experts consider a balanced market.

What does this mean for real people? If you've got a nice, move-in-ready home in a good area, you'll probably get multiple offers. But if your property has issues — foundation problems, outdated systems, title complications, or you're behind on taxes — the traditional market gets a lot trickier.

I've seen this pattern a hundred times: homeowners with problem properties sit on the market for 90, 120, even 180 days while perfect homes sell in a week. That's the reality nobody talks about in those glossy market reports.

Days on Market: The Tale of Two Markets

The average days on market in Texas right now is about 42 days. But here's what that number doesn't tell you — there's basically two different markets operating side by side.

Market #1: Clean, updated homes in good neighborhoods. These are selling in 15-25 days, often with multiple offers.

Market #2: Properties with challenges. These might sit for 60, 90, or even 120+ days. We're talking about homes that need major repairs, have legal issues, are in probate, facing foreclosure, or just don't fit the traditional buyer's wishlist.

Whether you sell to us or someone else, here's what you need to know: if your property falls into that second category, the traditional route might not be your best bet. That's not a criticism — it's just reality.

Sales Volume: Texas Keeps Moving

Texas recorded about 285,000 home sales in 2025, and we're on pace for similar numbers in 2026. That's still below the peak years, but it shows this market has staying power. The state's population keeps growing — we added over 470,000 people last year alone.

But here's something most people don't realize: a significant portion of these sales happen off-market. Investors, companies like HOMESELL USA, and other cash buyers are handling deals that never hit the MLS. Why? Because sometimes sellers need speed, certainty, and simplicity more than they need top dollar.

Buyer Demand: Still There, But Pickier

Buyer demand in Texas remains solid, but today's buyers are more selective than they were a few years ago. With mortgage rates where they are, people are being careful with their money. They want move-in-ready properties or they want a significant discount for anything that needs work.

I talked to a homeowner in Plano last week who said, "Uncle Charles, I've had 12 showings but no offers. What gives?" Turns out the house needed a new HVAC system and had some foundation settling. In today's market, most retail buyers just move on to the next listing rather than deal with repairs and negotiations.

Regional Variations Across the Lone Star State

Texas is basically four different real estate markets pretending to be one state:

East Texas: Slower appreciation, lower prices, more affordable for first-time buyers. Beaumont, Tyler, Longview — these markets move at their own pace.

Central Texas: Austin and surrounding areas. Still hot, but not the crazy growth we saw in 2021-2022. Tech industry layoffs have cooled things down a bit.

North Texas: DFW metroplex. Corporate relocations keep demand steady. This area has the most consistent market activity I've seen.

South Texas: San Antonio, McAllen, Corpus Christi. Immigration patterns and military presence create unique dynamics. Still the most affordable region for buyers.

What This Means for Property Owners

Look, here's the bottom line: if you own Texas real estate, you're in a decent spot overall. But the market is more nuanced than it's been in years. You can't just slap a "For Sale" sign in the yard and expect magic to happen anymore.

For properties with challenges — whether that's needed repairs, legal issues, or just bad timing in your life — the traditional market might not serve you well. That's exactly why HOMESELL USA exists. We buy houses throughout Texas, in any condition, with cash, and we close fast. No repairs, no showings, no uncertainty.

Whether you're dealing with foreclosure in Houston, inherited a property in Dallas you don't want, or just need to sell quickly in San Antonio, there are options beyond listing with a realtor and hoping for the best.

Looking Ahead: What to Expect

Based on what I'm seeing, Texas real estate should remain relatively stable through 2026. Population growth continues, job markets are diverse, and we've got land to build on (unlike some other states). Prices will probably keep growing, but at a more sustainable pace than the crazy years.

The key is understanding which market your property fits into and choosing the right selling strategy accordingly.

If any of this sounds like your situation — whether you've got a problem property or just need straight answers about your options — give Uncle Charles a call. No pressure, no judgment, just honest advice from someone who's helped thousands of Texas homeowners navigate exactly these situations. Because sometimes the best solution isn't the obvious one.

Frequently Asked Questions

Frequently Asked Questions About Texas Housing Market 2026

Q: Are home prices still rising in Texas?

A: Yes, but at a slower pace. Texas home prices are up about 4.2% year-over-year as of February 2026, with the median around $385,000 statewide. That's much more sustainable growth compared to the 15-20% annual increases we saw in 2021-2022.

Q: How long does it take to sell a house in Texas right now?

A: It depends on your property's condition. Clean, updated homes in good areas are selling in 15-25 days. Properties with issues — needed repairs, legal complications, or unique situations — might sit for 60-120+ days in the traditional market. That's why many owners choose cash buyers like HOMESELL USA for faster closings.

Q: Which Texas cities have the strongest housing markets?

A: Dallas-Fort Worth shows the most consistent activity due to corporate relocations. Austin remains pricey but growth has cooled. Houston is recovering with the energy sector. San Antonio offers the best affordability among major metros. Each market has its own dynamics.

Q: Is it a good time to sell my house in Texas?

A: For move-in-ready properties, yes — there's still good demand and limited inventory. For properties needing work or with complications, the traditional market is tougher. Consider all your options, including cash buyers who can close quickly without repairs or showings.

Q: What's driving Texas population and housing demand?

A: Texas added over 470,000 people in 2025 due to job growth, business relocations, lower taxes, and affordable living compared to other states. This continued population growth supports housing demand across the state, though buyers are more selective now than in recent peak years.