Blog > Texas & Houston Real Estate Market Update – What Buyers Need to Know in 2026
Texas & Houston Real Estate Market Update – What Buyers Need to Know in 2026
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🏡 Texas & Houston Real Estate Market Update – What Buyers Need to Know in 2026
As we head into 2026, Texas real estate — especially in Houston and its surrounding cities — is showing signs of renewed energy, driven by lower interest rates and a slight cooling in home prices across certain submarkets.
If you’ve been on the fence about buying a home, now may be the window of opportunity you’ve been waiting for.
Here’s a breakdown of the latest market trends, and what they mean for buyers, sellers, and investors across the Houston area.
📉 Mortgage Rates Are Down — But Home Prices Aren’t Following (Yet)
In recent months, we’ve seen a notable drop in mortgage interest rates, with 30-year fixed rates now hovering around the low 6% range — the most affordable they’ve been in over three years.
This is giving buyers a much-needed affordability boost. However, contrary to what some may assume, home prices haven’t taken a dive.
In many areas, prices remain strong, inventory is slowly rising, and competition is steady, especially in desirable neighborhoods.
🔎 Key Highlights – Texas Statewide
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Median Price: $330,849 (▼2.7% YoY)
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Closed Sales: 28,070 (▲4.8% YoY)
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Active Listings: 128,677 (▲14.2% YoY)
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Months of Inventory: 4.6 (balanced)
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Median Days on Market: 76
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Price per Sq Ft: $170.30
Texas is trending toward a more balanced market, offering more inventory and negotiating room for serious buyers — but demand remains strong.
📍 Spotlight on Houston Metro Submarkets
Here’s a quick look at how some of the most active single-family markets around Houston are performing (December 2025 data):
Katy - North
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Median Price: $296,250 (▼4.4%)
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Closed Sales: 85 (▼9.6%)
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Active Listings: 378 (▲21.9%)
Katy - Southeast
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Median Price: $392,500 (▼7.7%)
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Closed Sales: 66 (▲4.8%)
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Inventory up 34.3% YoY
Sugar Land - South
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Median Price: $537,500 (▼7.3%)
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Closed Sales: 40 (▲42.9%)
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Months Inventory: 3.2
Sugar Land - West
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Median Price: $425,567 (▼4.3%)
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Closed Sales: 73 (▲46.0%)
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Inventory up 39.3% YoY
The Woodlands
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Median Price: $579,900 (▼6.3%)
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Closed Sales: 98 (▼10.9%)
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Inventory: 261 homes (▲13%)
Pearland
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Median Price: $351,500 (▼6.3%)
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Days on Market: 95
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Active Listings: 330 (▲13.0%)
💡 Note: This data reflects only single-family homes. If you’re interested in reports for condos, townhomes, land, multi-family, or want a custom report by ZIP code, neighborhood, or subdivision, [contact us directly] to request a personalized breakdown.
🎯 What Does This Mean for Buyers?
With interest rates down and inventory up, buyers today have more leverage and choice than they’ve had in years. But with home prices holding relatively firm in many areas, the cost of waiting could be higher than acting now.
👉 Lower rates = more purchasing power.
👉 More listings = less competition.
👉 Stable prices = strong long-term investment.
🗺️ Ready to Explore Homes in Your Area?
Click below to view active listings and market trends in each city:
Houston – 🔗 Link
Katy – 🔗 Link
Bellaire – 🔗 Link
Cypress – 🔗 Link
Richmond – 🔗 Link
Rosenberg – 🔗 Link
Missouri City – 🔗 Link
Pearland – 🔗 Link
Sugar Land – 🔗 Link
Fulshear – 🔗 Link
Brookshire – 🔗 Link
Tomball – 🔗 Link
The Woodlands – 🔗 Link
Spring – 🔗 Link
Cleveland – 🔗 Link
Hedwig Village – 🔗 Link
Spring Valley Village – 🔗 Link
Piney Point Village – 🔗 Link
Hilshire Village – 🔗 Link
Hunters Creek Village – [🔗 Link
Bunker Hill Village – [🔗 Link
Humble – [🔗 Link
Rosharon – [🔗Link
🔑 Final Thoughts
Despite slight year-over-year price declines in some cities, Houston-area real estate remains strong — and with interest rates dipping, it’s creating a window of opportunity for savvy buyers.
Whether you're a first-time homebuyer or an investor looking for value, now is the time to explore your options and secure a home while rates are in your favor.
📞 Ready to start your search or need a custom report?
Contact our team at MRG Realty for expert help, property alerts, and neighborhood insights.
