Texas home prices were essentially flat in the third quarter of 2026 while the number of homes for sale kept rising. Texas REALTORS reported a statewide median sales price of $333,628, down 0.4% from a year earlier, with active listings up 2.8% and months of inventory edging up to 5.5. For buyers, that generally means more choices and more time to decide, even as mortgage rates moved higher this fall.
Statewide: flat prices, more listings, fewer closings
The Texas REALTORS 2026 Q3 Texas Quarterly Housing Report, released Oct. 20, 2026, showed the statewide median sales price slipping 0.4% from the third quarter of 2025 to $333,628. Closed sales declined 2.4%, while active listings increased 2.8%.
Months of inventory, a measure of how long the current supply would last at the recent sales pace, rose slightly from 5.4 to 5.5 months. Home availability increased in 18 of the 26 metro areas the report tracks. Median prices rose in 15 metros, fell in 10 and were unchanged in one, a reminder that the statewide number hides real local differences.
Big metros: Houston and DFW sales slow, Austin and San Antonio sales rise
Among the four largest metros, Texas REALTORS reported that closed sales fell in Dallas-Fort Worth-Arlington and Houston-Pasadena-The Woodlands but rose in Austin-Round Rock-San Marcos and San Antonio-New Braunfels during Q3. Median prices in those four metros changed by 1.2% or less.
Monthly local data adds detail. According to Houston Association of Realtors figures reported on Oct. 19, 2026, Greater Houston single-family sales totaled 7,030 in September, down 5.7% from a year earlier. The median price was $325,000, essentially flat, months of inventory rose from 5.1 to 5.5, and active listings climbed 6.3% to 40,192.
In San Antonio, the San Antonio Board of REALTORS' September 2026 report showed a median price of $302,999, down about 2% from September 2025, with 5.95 months of inventory and an average of 88 days on market, as reported by My Neighborhood News.
Higher mortgage rates are the counterweight
More inventory has arrived alongside higher borrowing costs. Freddie Mac's Primary Mortgage Market Survey put the average 30-year fixed rate at 7.18% for the week of Nov. 5, 2026, down from 7.24% the prior week but up from 6.22% a year earlier. The 15-year fixed averaged 6.57%.
HAR noted that for a median-priced Houston home, monthly principal and interest rose between September 2025 and September 2026, before taxes, insurance and HOA dues. Even small rate moves can change what a budget supports, so it may help to run your own numbers with our mortgage rate calculator.
Why months of inventory matters
Months of inventory is a quick read on leverage. When supply is low, sellers typically hold the upper hand; as it rises, buyers often gain room to negotiate on price, repairs or closing costs. At 5.5 months statewide, and around 5.5 to 6 months in Houston and San Antonio based on September data, many Texas markets look more balanced than they did a few years ago.
That said, conditions can vary by neighborhood, price point and property type. Townhomes and condos, for example, showed far more supply than single-family homes in HAR's September Houston data.
What this means for Texas borrowers
If you are shopping now, more listings and longer market times may give you more negotiating room than in recent years. Asking for seller-paid closing costs or a rate buydown may be worth discussing with your agent and loan officer, though results depend on the property and the seller.
Getting a pre-approval before you shop can clarify your price range. Compare options such as FHA loans, conventional loans and, for eligible veterans, VA loans. First-time buyers can review Texas down payment assistance programs, and our Texas mortgage guide covers state-specific basics.
- Check local data, not just statewide medians: prices moved in different directions across metros.
- Budget for taxes and insurance, which HAR's payment estimate excludes.
- When you are ready, you can start an application or find a loan officer.
Sources
- Texas Homebuyers Had More Options in Q3 of 2026 (2026 Q3 Texas Quarterly Housing Report), Texas REALTORS via PR Newswire (October 20, 2026)
- Houston Housing Market Slows as Mortgage Rates Rise, but Home Prices Hold Steady in September 2026, My Neighborhood News (HAR data) (October 19, 2026)
- San Antonio Housing Market Shifts in September 2026 as Home Prices Fall and Buyers Gain More Options, My Neighborhood News (SABOR data) (October 9, 2026)
- Primary Mortgage Market Survey, Freddie Mac (November 5, 2026)
This article is for general information about the mortgage market and is not financial, legal or tax advice. Figures come from the sources listed and may have changed since publication. Rates and averages cited are published market data, not an offer or HomyLoan rates. HomyLoan, LLC is a licensed mortgage broker, Company NMLS 2783307, not a lender. All loans are subject to credit approval and program guidelines. Equal Housing Opportunity.
