Texas Housing Market Q1 2026: What Buyers and Sellers Need to Know Right Now
The latest data on the Texas housing market is in, and it tells a story worth paying attention to. Whether you are thinking about buying your first home, upgrading, or selling, understanding what is happening across the state right now could save you money and help you make a smarter decision. Let me walk you through what the numbers are showing.
The Big Picture: Texas Housing Cools, But Stays Competitive
According to the 2026 Q1 Texas Quarterly Housing Report from Texas REALTORS, home sales declined in half of Texas metro areas during the first quarter of the year, while the other half saw sales increase. The statewide median home price dipped slightly to $328,000, a 0.8% decline year over year.
Homes are also taking longer to sell. The typical Texas home stayed on the market for 80 days in Q1 2026, up six days from the same period last year. Days on market increased in 19 of Texas’ 26 metro areas.
On the supply side, active listings statewide increased 7.4%. That is a significant slowdown compared to the 30%-plus annual jumps we saw in the previous three quarters, but it still means buyers have more options than they did a year ago.
Market Breakdown by City
Houston
Houston saw a 1.4% year-over-year decline in home sales, with buyers closing on 18,371 homes in Q1. The median price fell to $325,000, down 1.5% from a year ago. Active listings increased 9.2%, bringing the metro to 4.8 months of inventory. For buyers, that is a meaningful improvement in selection. For sellers, it means pricing your home correctly from day one matters more than ever.
Dallas
Dallas also saw an annual decrease in sales during Q1 2026. Inventory has risen here as well, giving buyers more negotiating room than they had during the peak frenzy of 2021 and 2022. If you are buying in the DFW area, getting a solid pre-approval before you start your search is critical; the market is more balanced, but well-priced homes in desirable neighborhoods still move quickly.
San Antonio
San Antonio’s market is reflecting similar trends, with inventory rising and days on market extending. This is actually good news for buyers who have been sitting on the sidelines. If you have been waiting for a less chaotic market to make your move in San Antonio, that window is open right now.
Austin
Austin prices have continued to soften from their pandemic-era highs. The combination of more inventory and longer days on market has given buyers real leverage. Seller contributions to closing costs are back on the table in a way they were not two years ago.
What This Means If You Are Buying
Across Texas, buyers are in a better position today than they have been in several years. More inventory, more negotiating room, and motivated sellers all work in your favor. Here is how I advise buyers to think about the current market:
- Get pre-approved now, not later. The market may be more buyer-friendly, but the best properties still attract multiple offers. A strong pre-approval letter signals to sellers that you are serious and ready.
- Ask about seller concessions. With homes sitting on the market longer, sellers are more open to contributing to your closing costs or buying down your interest rate. I help my clients negotiate these terms on every transaction.
- Do not wait for rates to drop to zero. Rates are not going back to where they were in 2020 and 2021. If you find the right home at a price that works for your budget, the time to act is when your life is ready, not when the market is perfect.
- Think about your loan type carefully. Depending on your situation, a conventional loan, FHA loan, or VA loan could make a meaningful difference in your monthly payment and the terms you lock in. This is exactly the conversation I have with every client before they start shopping.
What This Means If You Are Selling
The Texas market is not crashing, but it is no longer the seller’s paradise of 2021. If you are planning to sell in Houston, Dallas, San Antonio, Fort Worth, or anywhere else in the state, here is the honest truth:
- Pricing matters more than ever. Overpriced homes are sitting. Correctly priced homes are still selling. Work with an agent who knows your micro-market.
- Expect buyer requests for concessions. Budget to potentially contribute to the buyer’s closing costs or consider offering a rate buydown as an incentive.
- Your buyer pool is real. There are qualified buyers across every Texas metro actively looking right now. The demand is there; it just requires the right price to unlock it.
The New Construction Factor
One trend worth watching: Texas has been a massive new construction market. According to the Texas Real Estate Research Center at Texas A&M, Texas accounted for 16.5% of all new single-family building permits issued nationally in recent years. That is an extraordinary figure, and it means buyers have more options than just existing homes.
Builders have also been shifting toward more affordable price points to compete with rising rates and to attract first-time buyers. If you are a first-time buyer in a market like Houston or San Antonio, new construction in the sub-$350,000 range is worth exploring, and I can help you finance it.
Where Mortgage Rates Stand
As of late April 2026, rates on a 30-year fixed mortgage are hovering in the mid-to-upper 6% range, according to national averages. I want to be straight with you: rates vary based on your credit, loan type, down payment, and lender. I do not believe in quoting generic rates that may not reflect your actual situation.
What I do believe in is running your numbers honestly. I will tell you exactly what payment you are looking at based on your real profile, not a ballpark rate from a headline.
If you have already received a Loan Estimate from another lender, I am happy to take a look at it and show you what I can do. No pressure, just a real comparison.
My Take: This Is Actually a Good Time to Buy in Texas
I know that might sound counterintuitive when headlines are talking about declining sales and longer days on market. But hear me out.
Two years ago, buyers were waiving inspections, offering tens of thousands over asking, and losing out on ten offers before finally getting a home. Today, buyers can take their time, negotiate, ask for concessions, and make thoughtful decisions. That is a healthier market.
Texas is still growing. The population is still coming. The long-term fundamentals of homeownership in this state are strong. The buyers who get into the market during a period of less competition often look back and feel very good about that decision.
If you are ready to take the next step, or even just want to understand what you could qualify for, let us talk. Reach out here and I will walk you through it.
Anthony Ferrando | Ferrando Financial LLC | NMLS# 1919613 | Company NMLS# 2403080 | Licensed in Texas. Market data sourced from Texas REALTORS Q1 2026 Quarterly Housing Report and Texas Real Estate Research Center at Texas A&M. This is not a commitment to lend. Rates and loan approval are subject to credit, income, and property qualifications.
