New data from the Texas Housing Insight January 2026 report presented by the Texas Real Estate Research Center (TRERC), reveals a housing market in Texas that remains subdued heading into the new year, with notable declines in home sales and persistent pricing pressures.
According to the TRERC analysis of November 2025 MLS data, statewide home sales dropped sharply — falling 8 percent year-over-year — extending the cooling trend seen in October and mirroring broader national sales declines. Despite the weaker monthly figures, year-to-date sales growth remains positive, on pace for a modest 1%–2% annual gain. Pending sales data suggest potential stabilization in December activity.
Market conditions reflect elevated inventory levels well above pre-pandemic norms, contributing to slower turnover and a more buyer-balanced environment. Active listings stood at approximately 5.2 months of supply, rising from 4.5 months a year earlier — above the typical three-to-four-month range associated with balanced markets. Homes that did sell spent more time on market, averaging 72 days, while unsold inventory lingered even longer, at 103 days on average.
Pricing indicators show ongoing softening across major metros. While the statewide median held at around $333,000 in November, certain markets exhibited year-over-year declines: San Antonio prices dropped nearly 1.8%, while Austin fell about 2.5%, and parts of the Dallas-Fort Worth area also saw downward pressure. Houston’s price declines continued but at a slightly slower pace.
New listing activity pulled back sharply in November, but annual totals for 2025 still reached record highs — surpassing 565,000 listings — reinforcing the trend of elevated supply.
Looking ahead, analysts say mortgage rate movements will be critical in shaping buyer demand and market dynamics as the Texas housing market transitions through 2026.
