Key Takeaways

Key Takeaways Balanced Growth: Texas home prices are rising at a sustainable 4.2% annually with median prices at $385,000, showing healthier market conditions than previous years' double-digit spikes. Improving Inventory: With 2.8 months of supply and 28 days average time on market, buyers have more options while sellers still maintain advantage in most areas. Regional Opportunities: Major metros show varied conditions - DFW ($425K median) and Houston ($375K) offer strong activity, San Antonio ($315K) provides affordability, while Austin ($510K) shows cooling from pandemic highs. Distressed Property Market: Current conditions favor creative solutions for problem properties, with more opportunities for cash buyers and alternative selling methods than during the peak seller's market.

Texas Real Estate Market Report: February 2026 - What Uncle Charles Sees on the Ground

Look, I've been buying houses in Texas for over two decades now, and let me tell you — the Lone Star State's housing market never fails to surprise me. As we head into spring 2026, I'm seeing some interesting shifts that affect everyone from first-time homebuyers to folks dealing with problem properties.

Whether you're thinking about buying, selling, or you're stuck with a distressed property, here's what's really happening in Texas real estate right now. No sugar-coating, just the facts from someone who deals with every type of property situation you can imagine.

The Big Picture: Texas Housing Market Overview

Texas continues to be one of the most active real estate markets in the country, and for good reason. We've got jobs, we've got space, and we've got cities that people actually want to live in. But 2026 is bringing some changes that are worth paying attention to.

The median home price across Texas is sitting at around $385,000 as of February 2026, which is up about 4.2% from last year. Now, before you panic about affordability, that's actually a much more reasonable increase than the double-digit jumps we saw a few years back. The market is finding its footing again.

Here's what I'm seeing: inventory is slowly improving, with about 2.8 months of supply available — still a seller's market, but not the crazy feeding frenzy we had in 2021-2022. Days on market are averaging 28 days statewide, which tells me properties are still moving, but buyers have a little more breathing room to make decisions.

Major Metro Areas: Where the Action Is

Houston Metro

Houston's median home price hit $375,000 in February, up 3.8% year-over-year. The energy sector is doing well, which always helps Houston's housing market. I'm seeing good activity in both traditional sales and distressed properties here. The foreclosure rate is steady at about 0.9%, which means there are opportunities for investors and cash buyers like HOMESELL USA to help homeowners in tough situations.

Dallas-Fort Worth

DFW is still the powerhouse, with median prices around $425,000. Corporate relocations keep driving demand, but I'm noticing inventory improving — about 3.1 months of supply compared to 2.2 months last year. For folks with problem properties in DFW, the strong market means there are always buyers willing to take on challenging situations.

Austin

Austin's cooling off from its pandemic highs, which honestly needed to happen. Median prices are at $510,000, up just 2.1% from last year. The tech market has stabilized, and while it's still expensive, at least people aren't getting into bidding wars over every single property like they were a few years back.

San Antonio

San Antonio remains the most affordable major Texas market at a median of $315,000, up 4.8% year-over-year. Military presence keeps demand steady, and I'm seeing good opportunities here for both traditional buyers and investors looking at distressed properties.

What's Driving the Market in 2026

I had a homeowner call me last week from Plano who said, "Uncle Charles, I keep hearing mixed messages about the market. What's really going on?" Here's what I told her, and what I'm telling you:

Population Growth: Texas is still growing faster than most states. We added about 350,000 new residents in 2025, and they all need somewhere to live. That puts steady pressure on housing demand.

Job Market: Employment is solid across major metros. Unemployment is sitting at 3.4% statewide, which means people have jobs and can qualify for mortgages. That's good for housing demand.

Interest Rates: Mortgage rates are hovering around 6.8% for a 30-year fixed loan. Not great compared to the 3% days, but manageable. More importantly for my business at HOMESELL USA, higher rates mean more people need creative solutions when they can't qualify for traditional financing.

New Construction: Builders are being more careful than they were during the boom years. They're not flooding the market with inventory, which keeps existing home values stable.

The Reality for Different Types of Sellers

Here's where I get real with you about what this market means depending on your situation:

Traditional Sellers

If you've got a nice, move-in-ready house in a decent area, you're still in good shape. You might not get 20 offers in one weekend like you would have in 2021, but you'll sell within 30-45 days if you price it right. Work with a good realtor who knows your local market.

Distressed Property Owners

This is where I spend most of my time, and honestly, there are more opportunities now than there were during the super-hot market. When everything was selling in days, there wasn't much room for properties with problems. Now there's space in the market for houses that need work, have title issues, are facing foreclosure, or have other complications.

I'm seeing more probate properties as the baby boomer generation ages. I'm seeing more people who bought during the peak and now need to sell for life reasons but can't afford the repairs to make their house market-ready. These are situations where HOMESELL USA can step in and provide solutions that traditional real estate can't handle.

Regional Variations Worth Knowing

Texas is huge, and the market varies dramatically by region:

East Texas: More affordable, but slower appreciation. Good for first-time buyers, but if you're selling a distressed property, you need patience or a cash buyer.

West Texas: Oil and gas activity drives everything. When energy prices are good, housing follows. Currently seeing steady demand.

Rio Grande Valley: Most affordable region in the state, but also the most price-sensitive. Great opportunities for investors.

Central Texas: Still hot around Austin, but smaller cities like Waco and Killeen offer better affordability with good growth potential.

What to Expect in the Coming Months

Look, I don't have a crystal ball, but I've seen enough market cycles to recognize patterns. Here's what I expect for the rest of 2026:

Spring will bring the usual seasonal uptick in activity. Inventory will continue to improve gradually — maybe reaching 3.5-4 months of supply by summer, which would be the most balanced market we've seen in years.

Prices will continue rising, but at a more sustainable 3-5% annually rather than the crazy jumps we saw earlier this decade. That's actually healthy — it means people can plan and budget rather than getting priced out overnight.

Interest rates will probably stay in the 6-7% range unless something dramatic happens economically. That means the days of super-cheap money are over, but it's still within historical norms.

Bottom Line: What This Means for You

Whether you're buying, selling, or dealing with a problem property, the Texas market in 2026 offers opportunities if you know what you're doing. The key is understanding your specific situation and choosing the right approach.

If you're dealing with a distressed property — whether it's foreclosure, probate, major repairs needed, or any other complication — don't assume you have to go through the traditional listing process. The current market has room for alternative solutions, and companies like HOMESELL USA are actively buying properties that might not work in the traditional market.

The most important thing is to make decisions based on your actual situation, not what you hear on the news or from your neighbor's cousin who's a part-time realtor. Every property and every situation is different, and in a market this size and diverse, there's usually a solution if you know where to look.

If you're sitting on a property that's causing you stress — whether it's inherited, needs major work, has title problems, or you just need to sell fast — give Uncle Charles a call. No pressure, no judgment, just straight answers about your options. Because sometimes the best solution isn't the most obvious one, and after 20+ years of buying houses in every condition imaginable, I've probably seen a situation just like yours before.

Frequently Asked Questions

Frequently Asked Questions

Q: Are Texas home prices still rising in 2026?

A: Yes, but at a much more reasonable pace. We're seeing 3-5% annual appreciation statewide instead of the double-digit jumps from a few years ago. The median home price is around $385,000, which is up 4.2% from last year but represents a more sustainable growth pattern.

Q: Is it still a seller's market in Texas?

A: Technically yes, but it's much more balanced than before. With 2.8 months of inventory and homes selling in about 28 days on average, sellers still have an advantage, but buyers have more time to make decisions and aren't facing the bidding war frenzy we saw in 2021-2022.

Q: Which Texas cities have the best real estate opportunities right now?

A: It depends on your situation. DFW and Houston offer the most activity for both traditional and distressed properties. San Antonio provides the best affordability among major metros at $315,000 median price. Austin is cooling but still strong for those who can afford the $510,000 median price point.

Q: What if I need to sell a house that needs major repairs in Texas?

A: The current market actually has more room for distressed properties than during the super-hot seller's market. You have options: fix it up and list traditionally, or sell to a cash buyer like HOMESELL USA who buys houses in any condition. The right choice depends on your timeline, budget, and stress tolerance.

Q: How do current interest rates affect the Texas housing market?

A: With rates around 6.8%, fewer people qualify for traditional financing, which has cooled buyer demand slightly. However, this creates opportunities for cash transactions and alternative selling methods. It's also pushing some homeowners who need to relocate into situations where they need quick sale solutions rather than traditional listings.