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Texas Housing Market Update for Q1 2026

The housing market in Texas has shown a slight uptick in sales as we moved into the first quarter of 2026. According to the latest quarterly report released by Texas Realtors, the state's metropolitan areas displayed a split performance, with half recording increases in sales while the other half experienced declines.

Statewide Sales Performance

Overall, Texas experienced a 0.7% rise in home sales compared to the previous year. Areas such as Abilene and McAllen stood out with impressive year-over-year increases of 22.9% and 17.5% respectively. However, the three largest markets—Dallas, Houston, and San Antonio—each faced declines of less than 2% in closed sales compared to 2025. This mixed bag of outcomes highlights the varying dynamics at play within different regions of the state.

Average Home Prices

Interestingly, the average price of a home in Texas has dipped by 0.8% statewide, which marks the first annual decline in over a decade. The average home price settled at $328,000 in the first quarter, sliding below figures from the same period last year. Notably, while three of the four largest metropolitan areas saw price drops of less than 3%, twelve out of the twenty-six surveyed areas marked increases in their average home prices.

Jennifer Wauhob, President of Texas Realtors, remarked on the complexity of the market: "In the early 2020s, we observed a continuous rise in prices across the board, but the landscape has changed dramatically. These fluctuations are not uniform; they vary greatly by city and even neighborhood."

Days on Market and Inventory Trends

In terms of days on the market, homes in Texas averaged 80 days, which is an increase of 6 days from the same quarter last year. Notably, in 19 metropolitan areas, homes stayed on the market longer, while 7 areas reported a decrease in this measure. Similarly, months of inventory—indicative of how long it would take to sell the current housing stock at the current sales rate—increased, with the state averaging around 5 months of inventory, up by 0.3 months from 2025. This suggests a generally balanced market, as analysts characterize a 4 to 5-month inventory as an equilibrium between supply and demand.

Active Listings and Market Insights

The number of active listings has also risen, albeit at a lower rate compared to past years, increasing by 7.4% from the previous year. Previous quarters had seen more than 30% growth in listed properties. Wauhob emphasizes the importance of understanding the context in terms of local market conditions: "While most places in Texas are seeing more houses for sale than in recent times, this trend is not uniform throughout the state. Homebuyers and sellers should consider their objectives in relation to their micro-market conditions. A Texas Realtor can be an invaluable resource to guide them through the specifics that can make a substantial difference."

Conclusion and Future Outlook

The Texas Quarterly Housing Report for Q1 2026 presents a nuanced picture of the current state of the housing market. As home sales slightly increase while values show signs of fluctuation, homeowners and potential buyers are encouraged to remain informed and engage local experts to navigate the evolving scenario. The future remains promising, but understanding localized factors will be critical for achieving desired outcomes in real estate.

About the Texas Quarterly Housing Report

The data in the Texas Quarterly Housing Report is sourced from the Data Relevance Project, a partnership among local real estate associations and their multiple listing services (MLS), along with Texas REALTORS® and analytics from the Texas Real Estate Research Center at Texas A&M University. This report provides quarterly data pertaining to real estate sales across Texas and its 26 statistical metropolitan areas. It’s essential to note that statistical comparisons with previous reports may not be valid due to external factors like the redefinition of metropolitan area boundaries by the U.S. Office of Management and Budget.