Is the Texas Housing Market Cooling? What Buyers & Sellers Need to Know Right Now

If you’ve been watching the Texas housing market, you may be wondering what is really happening. Are home prices dropping? Is this a good time to buy? Should you wait to sell?

The short answer is: the Texas housing market has cooled from the fast-paced conditions of a few years ago, but current data is also showing early signs of stabilization.

That means buyers have more choices and more room to negotiate. Sellers can still reach serious buyers, but pricing and preparation matter more than they did during the peak seller’s market.

As a Texas real estate agent, I know the numbers can feel like a lot. So let’s look at what the latest data means for you and your family.

The Texas housing market is cooling, but it is not crashing

According to the Texas Real Estate Research Center’s August 2026 housing report, Texas had approximately 153,800 active listings at the end of June.

That represented about 5.4 months of housing supply. In simple terms, if no new homes came onto the market, it would take about 5.4 months to sell the homes currently available at the current pace of sales.

This is a much more balanced environment than the intense seller’s market we saw earlier in the decade.

At the same time:

Texas closed 34,956 home sales in June, up 8.6% from June 2025.
Year-to-date sales through June were 3.2% higher than the same period last year.
The statewide median sales price was $342,900, down from $350,000 a year earlier.
Homes that sold spent an average of 62 days on the market.
Unsold homes had been sitting for about 90 days on average.
The typical seller price cut was approximately $12,000, or 3.3% of the original listing price.

So, yes, prices are still below year-ago levels. But the decline is easing, and sales are modestly strengthening. That combination is one reason researchers are watching for stabilization rather than expecting a sharp downturn.

The market is giving buyers more breathing room while still providing sellers with opportunities: especially when the home is priced correctly.

What is happening with Texas home prices?

Prices are not moving the same way in every part of Texas. This is important because the statewide numbers do not tell the full story.

The latest Texas Real Estate Research Center data shows:

Austin continues to experience the most noticeable price correction among the major Texas markets. Prices were down about 2.2% year over year in June.
San Antonio also continues to face price pressure, with annual declines approaching 2%.
Dallas-Fort Worth is moving closer to stabilization, although the market remains in transition.
Houston is also showing signs of becoming more stable as price declines moderate.
Fort Worth-Arlington has shown a small rebound, recording consecutive months of year-over-year price gains.

This is a good reminder that the Texas housing market is local. A neighborhood in Fort Worth may be experiencing something very different from a neighborhood in Austin or San Antonio.

That is why I always recommend looking at recent sales, active listings, days on market, and price reductions in the specific area where you want to buy or sell.

You can create a custom market report to see what is active, under contract, and sold in your neighborhood.

What this means if you are buying a home

For buyers, the current Texas housing market can offer more flexibility than we have seen in recent years.

1. You may have more homes to choose from

With inventory around 5.4 months of supply, you may not have to make a decision within hours of seeing a home. You can take time to compare neighborhoods, think about your commute, and consider what works best for your family.

That extra time can be especially helpful if you are looking for:

A larger home for a growing family
A neighborhood with parks and good outdoor space
A home office or extra bedroom
A property near schools, work, or family
A move-in-ready home that does not require major repairs

Use Advanced Search to explore homes by location, price, bedrooms, bathrooms, lot size, and other features that matter to you.

2. You may have more negotiating room

Price reductions and longer days on market can create opportunities for buyers. Depending on the property, you may be able to negotiate on price, repairs, closing costs, or other terms.

This does not mean every home will be a bargain. Well-priced homes in desirable locations can still attract attention. But you may have more choices and fewer bidding wars than buyers experienced during the peak market.

3. Affordability still matters

Even with prices cooling, mortgage rates and monthly expenses remain important parts of the decision. Your budget should include more than the mortgage payment. Think about property taxes, insurance, utilities, maintenance, and any homeowners association costs.

I can help you compare homes and neighborhoods so you can focus on the full monthly picture: not just the list price. I can also help connect you with mortgage professionals who can explain current financing options.

A slower market can be a good time to get informed. If you are only beginning to look, that is okay. You do not have to rush. Start by learning what your budget can comfortably support.

What this means if you are selling a home

Selling in today’s Texas housing market requires a little more planning than it did when buyers were competing aggressively for almost every listing.

1. Pricing is especially important

When buyers have more choices, an overpriced home can sit longer. The first few weeks on the market are important because that is when your listing may receive the most attention.

I look at recent comparable sales, current competition, neighborhood activity, and the condition of your home before helping you choose a listing price.

The goal is not simply to choose the highest possible number. The goal is to position your home so qualified buyers see the value and feel comfortable making an offer.

2. Preparation can make a real difference

Small improvements can help your home show well. This may include:

Decluttering and organizing
Touching up paint
Improving curb appeal
Making small repairs
Brightening rooms with natural light
Staging key living areas
Taking clear, professional photographs

You do not necessarily need to complete a major renovation before selling. The right improvements depend on your home, your neighborhood, and your goals.

3. Be prepared for a longer timeline

Homes that sold in June spent an average of 62 days on the market, while unsold homes had been listed for about 90 days. That means sellers should plan with patience and realistic expectations.

Your home may sell quickly if it is priced well and presented properly. But it is wise to have a plan for showings, feedback, possible negotiations, and potential price adjustments.

You can also get a quick property valuation to receive a starting estimate of what your home may be worth. An online estimate is helpful, but a local market review can give you a more complete picture.

What to expect in fall and winter 2026

The current outlook for fall and winter 2026 is relatively stable.

That does not mean every month will look exactly the same. Seasonal changes are normal, and mortgage rates, jobs, consumer confidence, and local supply can all affect the market.

Still, the latest data points toward:

Continued buyer choice
More typical negotiation
Sales activity that remains steady to modestly stronger
Home prices holding near recent levels
Gradually easing price declines in many areas
Continued differences between Texas metros

The Texas Real Estate Research Center’s forecast expected home sales to improve modestly and prices to remain near recent levels or increase slightly under stable economic conditions.

For buyers, this may be a good season to explore without feeling pressured. For sellers, it is a good time to focus on accurate pricing, thoughtful preparation, and strong marketing.

My advice for navigating the Texas housing market

Whether you are buying, selling, or simply gathering information, start with your own goals.

Ask yourself:

What monthly payment feels comfortable?
Which neighborhoods fit your lifestyle?
Do you need to move now, or are you planning ahead?
What would make your home stand out to buyers?
What do recent sales say about your property’s value?

The Texas housing market may be cooling, but that does not mean you need to put your plans on hold. It simply means your next step should be based on current local information instead of old assumptions or headlines.

I’m here to help you make sense of the numbers and find the right path for your family. Explore buying resources, learn more about selling your home, or reach out with your questions.

You do not have to have everything figured out before you start. Let’s take it one step at a time.

Market data in this article is based primarily on the Texas Real Estate Research Center’s August 2026 Texas Housing Insight report and related Texas REALTORS® data. Local conditions can vary by city, neighborhood, property type, and price range.