TEXAS — The Texas housing market entered late summer with home prices showing signs of stabilization, buyers benefiting from significantly more choices than during the pandemic-era housing shortage, and elevated mortgage rates continuing to shape affordability across the state.
For people moving to Texas, the statewide numbers point to a housing market that is considerably more balanced than it was several years ago. But conditions vary substantially between Dallas-Fort Worth, Houston, Austin, San Antonio and the state's smaller communities.
The latest comprehensive Texas Housing Insight report from the Texas Real Estate Research Center at Texas A&M University, published in August 2026, found that sales activity strengthened during the first half of the year while inventory growth settled into a more stable pattern. The report analyzes data from Texas REALTORS and other housing sources.
Texas Housing Market August 2026: Statewide Snapshot
The August report's most complete statewide statistics cover June 2026 because comprehensive housing data are reported with a lag.
Texas recorded 34,956 closed home sales in June, an increase of 8.6% from a year earlier. Through the first six months of 2026, statewide sales were 3.2% higher than during the same period in 2025. The statewide median sales price reached $342,900, compared with $350,000 one year earlier. Active inventory totaled approximately 153,800 homes, up 2.4% from the previous month but largely unchanged year over year.
Texas Home Sales Are Increasing
One of the most significant developments in the August report is the increase in completed transactions.
Texas recorded an 8.6% year-over-year increase in June closed sales, and year-to-date transactions were running 3.2% ahead of 2025.
That suggests buyers haven't disappeared despite higher borrowing costs. Instead, Texas A&M researchers found that buyers appeared to be adapting to the current interest-rate environment while benefiting from greater housing choice and more stable inventory conditions.
For people considering a move to Texas, stronger transaction activity is important because it indicates that the market remains active even as it becomes more balanced.
Texas Median Home Price Falls Below Last Year's Level
The statewide median sales price of $342,900 was below the $350,000 median recorded one year earlier.
Texas A&M's home-price index showed statewide prices down approximately 0.4% year over year in June. The research center said this marked the 13th consecutive month of year-over-year price declines, although the rate of decline was moderating. That distinction matters.
The data indicate continued price softness, but not an accelerating statewide decline. Researchers also reported preliminary July data suggesting that price trends were continuing to stabilize.
The subsequent September Texas Housing Insight report reinforced that trend: July's statewide median was $339,000, unchanged from a year earlier, while the statewide price index decline narrowed to just 0.2%.
Texas Has Nearly 154,000 Homes for Sale
Housing supply is one of the biggest changes facing people moving to Texas.
Approximately 153,800 active homes were listed for sale statewide at the end of June, according to the August report. Inventory increased 2.4% from May but was largely unchanged from the previous year. Texas had approximately 5.4 months of housing supply, compared with 5.6 months one year earlier.
The subsequent July data show supply increasing further to approximately 156,000 active listings and 5.5 months of inventory.
That's a very different environment from the severe inventory shortages buyers encountered during the pandemic housing boom.
For relocators, more inventory can mean additional time to compare homes, communities, school districts, commuting patterns and property taxes before making an offer.
Texas Homes Are Taking Longer to Sell
Homes sold during June spent an average of 62 days on the market, compared with 60 days a year earlier.
Unsold homes were taking even longer. Properties remaining in inventory at the end of June had been on the market for an average of approximately 90 days. That gap can be useful information for relocating buyers.
Properties that have remained available for several months may warrant closer attention, particularly when buyers are looking for opportunities to negotiate price, repairs or other contract terms.
Texas Sellers Are Cutting Prices
Another important indicator of the changing market is the prevalence of price reductions.
The median seller price cut was approximately $12,000, equivalent to 3.3% of the property's original listing price, according to the August report.
Earlier Texas A&M research also found that price concessions had become increasingly common as higher mortgage rates made buyers more price-sensitive and sellers competed for a smaller pool of qualified purchasers.
For newcomers, that means the asking price should not necessarily be viewed as the final price.
Individual properties and neighborhoods vary, but longer market times and increased inventory can give buyers opportunities that were uncommon when bidding wars dominated the Texas market. Austin, Dallas-Fort Worth, Houston and San Antonio Are Moving Differently
There is no longer one simple description of the "Texas housing market."
Texas A&M found meaningful differences among the state's four largest metropolitan areas.
Austin continued to experience the most pronounced price weakness in June, with the home-price index down approximately 2.2% year over year. However, later data suggest that decline was moderating.
San Antonio also experienced downward price pressure, while inventory remained comparatively plentiful. By July, the metro had approximately 6.2 months of housing supply and active inventory was 4.4% above the previous year.
Dallas-Fort Worth was moving closer to price stabilization. Fort Worth-Arlington, in particular, recorded consecutive months of year-over-year price gains during the period covered by the August report.
Houston was also moving toward stabilization. The following month's report found that July became Houston's first month in the preceding year without a year-over-year home-price decline.
These differences reinforce why people relocating to Texas should examine metro- and county-level statistics rather than relying exclusively on the statewide median.
Mortgage Rates Remain the Biggest Affordability Challenge
More inventory and softer prices don't automatically mean Texas homes have become inexpensive to finance.
Mortgage rates remain a major obstacle. The Texas Real Estate Research Center reported that the average 30-year mortgage rate was approximately 6.66% in August 2026. Higher rates increase monthly payments and reduce the amount of house a household can afford, even when home prices are flat or declining.
Relocating buyers should therefore compare estimated monthly ownership costs rather than simply comparing listing prices.
That calculation should include the mortgage payment, Texas property taxes, homeowners insurance, potential flood insurance, HOA fees, utilities and commuting expenses.
What the August 2026 Texas Housing Market Means for Relocators
For newcomers, the biggest story isn't simply whether Texas home prices are rising or falling.
It's choice. Texas has moved away from the extreme housing scarcity that characterized the pandemic market. With roughly 154,000 active listings in the August report's complete statewide dataset, more than five months of supply, longer marketing times and frequent seller price reductions, buyers have more opportunity to compare properties and communities.
That doesn't mean every Texas community is a buyer's market. Conditions can vary dramatically by metro, county, ZIP code and price range.
But newcomers with geographic flexibility can use those differences to their advantage.
A buyer who can choose between Austin, San Antonio, Houston, Dallas-Fort Worth or an outlying suburban county may encounter substantially different home prices, inventory levels and negotiating conditions.
Texas Housing Market Outlook
The statewide housing market appears to be moving toward stabilization rather than another period of rapid appreciation or a broad collapse.
Texas A&M's September analysis found July sales 2.2% higher year over year, while the statewide median remained unchanged from the previous year and price declines continued to moderate.
The research center's longer-term forecast also projects continued sales growth and modest price appreciation rather than dramatic price movements, although actual results will depend heavily on interest rates, employment and broader economic conditions.
Bottom Line: Texas Buyers Have More Choices in 2026
The August 2026 Texas housing market report shows a market undergoing a significant transition.
Sales are increasing. Prices remain slightly below previous-year levels. Inventory is substantially healthier than during the pandemic shortage. Homes are taking longer to sell. And sellers are increasingly adjusting asking prices to attract affordability-conscious buyers.
For people moving to Texas, those conditions create a housing search that is less about racing to secure any available property and more about comparing where in Texas a household's budget provides the best combination of home price, employment access, lifestyle and long-term affordability.
And with conditions varying significantly between Austin, Houston, Dallas-Fort Worth, San Antonio and individual Texas counties, newcomers may find that where they choose to live matters more than the statewide housing headline itself.