If you’re a Texas homeowner trying to decide if you should sell now or hold off, you probably realized it’s a tough call. With the current market the way it is, it’s confusing what the best move is. Inventory is climbing, and buyers’ behavior is changing, making timing your home sale a big deal. As one of the best home buying companies in Texas, we’ve seen firsthand how the market can impact homeowners across the Lone Star State.
At the end of the day, there is no one-size-fits-all answer. Your personal decision all depends on your situation, local market conditions, and how much risk you’d be willing to take. Below, we’re going to look at what’s really happening in Texas real estate right now and help you make the right choice for yourself.
The “Great Stagnation”: Why Texas Inventory is Piling Up
What we’re experiencing right now in the Texas market is called the “Great Stagnation.” It just means that homes are sitting on the market longer than we’ve seen in the past. The main factor causing that is housing inventory levels climbing, especially in major metropolitan areas. Because of that, it created a shift in the market. So gone are the days of houses selling within days, as we saw during the COVID-19 pandemic.
Other factors that have caused this inventory buildup are higher mortgage rates, new construction, and lower buyer demand. We are starting to see more homeowners motivated to move, but new construction has flooded the market, and affordability is still a concern.
So collectively these factors have impacted cities like Houston, Austin, San Antonio, and Dallas, causing homes to sit on the market for weeks or months before selling. Even the median time to sale has increased compared to the crazy speed we saw only a few years ago. You shouldn’t be alarmed, though – this doesn’t mean the market is crashing. It just means that things are finally returning to normal after years of unheard-of activity.
2026 Forecast: Will Prices Drop or Just Stay Flat?
As we look ahead to 2026, most market data is pointing towards us seeing home price growth slowing down instead of dramatic drops. The Texas Real Estate Research Center (TRERC) actually predicts a modest appreciation for more price brackets, even with some areas seeing slight depreciation.
It is highly unlikely that we’ll see home prices crater as they did in 08, but the days of appreciation in the double digits are likely behind us. Instead, it appears that we’re entering a period where home values remain relatively stable. Of course, with regional differences because of economic conditions and job growth.
The future forecast is important for sellers. If you’re waiting for prices to spike again, you’ll probably be waiting a while. On the flip side, if you’re worried about losing home value, current market conditions suggest that it’s highly unlikely in most Texas markets.
The “Builder Problem”: Why You Can’t Compete with New Homes
We do have a builder problem right now. Not only are new homes and communities popping up like crazy, but homebuilders offer a lot of incentives that home sellers just can’t match. We’re talking about covering closing costs, upgraded appliances, or better mortgage rates.
Plus, your 1970s ranch may be competing with a brand-new home with warranties, modern layout, and move-in-ready conditions – hard for potential buyers to say no to. What all this boils down to is that your property faces an uphill battle. The areas seeing the most impact are in the suburbs around Dallas-Fort Worth, Houston, and Austin, where new developments are everywhere you turn.
What ends up happening is that existing homes need major updates or aggressive pricing to even be in the competition. Plus, many sellers are figuring out that the home-selling process now requires being savvy. You can’t just put a For Sale sign in the yard and expect an offer.
Regional Differences in Each Housing Market
As you would imagine, Texas markets differ by region. Austin continues to be a popular area for tech workers, even with some cooling. Houston benefits from its diverse economy, especially in energy and healthcare. Even San Antonio remains stable thanks to its military presence and cost of living.
Smaller markets like Cleburne have their own unique conditions that they face. If you need to sell your house fast in Grand Prairie, you’ll probably face some different challenges than someone in rural East Texas. If you are in an urban or suburban area near major job centers, fortunately, you’ll have better buyer activity even during slower times.
As you would imagine, coastal areas deal with additional factors like hurricane season risks and higher insurance costs. These factors can really impact sale prices and buyer interest throughout the year.
Mortgage Rates in 2026: The “Lock-In” Effect is Breaking
Interest rates are still high compared to the historic lows we saw back in 2020-2022. And with the way it’s looking, the Federal Reserve’s policies suggest rates won’t return to those levels anytime soon. But what we are seeing is the “lock-in” effect weakening as time goes on. Even with higher mortgages, life goes on, and circumstances change that require different housing needs.
Because of where current mortgage rates are now, some homeowners are motivated to finally make a move instead of continuing to postpone. Life may look different now – maybe you need to relocate for a job, have some family changes, or simply need more space. Instead of waiting, people are starting to accept that today’s interest rates are just what they are.
Now, this doesn’t mean sellers can count on rate drops to suddenly flood the market with buyers. Instead, the best thing you can do is focus on what you can control, like pricing, presentation, and timing your listing strategically.
The Hidden Cost of Waiting: Property Taxes & Insurance
While you’re hoping for things to take a turn, you definitely don’t want to be a seller blindsided by the ongoing costs of homeownership while you wait. Houston, TX, property taxes have been steadily climbing, and insurance costs across Texas have skyrocketed because of weather-related claims and inflation.
As you could imagine, these carrying costs can quickly eat away at your potential gains from waiting for better market conditions. You need to weigh your options and figure out if continuing to pay high property taxes and homeowner’s insurance is worth it while you wait for the perfect selling conditions.
We didn’t even mention the other carrying costs. When you factor in maintenance costs, yard chores, and regular home inspection needs, the true cost of waiting is shocking. Sometimes, the smart financial move is selling now rather than hoping for future appreciation that may not materialize.
Who Should Sell “As-Is” Right Now?
There are times when certain homeowners should seriously consider selling immediately, regardless of market conditions. Like if you’re dealing with major repairs, inherited property, or financial stress, waiting rarely improves your situation.
When properties need major updates, they often struggle in today’s market, again because buyers are expecting move-in-ready conditions or big price reductions to make up for the needed work. If you don’t have the extra money or energy for renovations, an as-is sale might be your best option.
This is where understanding how we buy houses becomes valuable. Cash buyers can often close quickly without requiring repairs, appraisal delays, or financing contingencies. For homeowners facing foreclosure, divorce, or other time-sensitive situations, this approach offers certainty that traditional listing might not provide.
Frequently Asked Questions (Texas Market)
Will the Texas housing market crash in 2026?
Highly unlikely. Texas has a strong economy, population growth, and relatively affordable housing compared to coastal markets. We’ll probably continue to see cooling and modest price adjustments, but a complete collapse isn’t supported by what we’re currently seeing.
Is Texas currently a Buyer’s or Seller’s Market?
The Texas markets are moving towards being more balanced. Some areas favor buyers due to increased inventory and longer selling times. But there are still some hot areas where sellers are getting full-priced offers and days on market are low. The extreme seller’s market we saw, though, has ended, but we haven’t swung to a dramatic buyer’s market either.
Should I wait for rates to drop to 5% before selling?
Waiting is risky because mortgage rates depend on so many factors beyond local control. Again, if your personal situation warrants selling, don’t let rate speculation delay your decision. Instead, it’s best to focus on your own financial needs rather than trying to time the market perfectly. Most people don’t win at that game.
Why are houses sitting on the market so long in Texas?
Remember, there are several reasons why houses are sitting on the market longer: increased inventory, picky buyers with more choices, affordability concerns, and competition from new construction. Homes priced aggressively for the current conditions still sell pretty quickly, but overpriced properties sit for a while.
Conclusion
It’s a tough call – should you sell your house in Texas now? Or should you wait? Really, it all depends on your individual needs. The market is moving away from the seller’s paradise we saw only a few years ago to a more balanced market. So if you’re hoping to see that again, it’s not likely.
Regardless, if you need to sell quickly or your property requires significant work, don’t let market timing concerns stop you. Sometimes the best decision is simply moving forward with your life.
Remember that estimating home value in TX and figuring out comps has become more complex in today’s shifting market. About our company – we specialize in providing honest assessments and fair cash offers, regardless of your property’s condition or timeline.
If you decide to list or end up exploring cash sale options, the best thing you can do is make an informed decision based on all the facts. We buy houses in Cleburne, Garland, Houston, Dallas, and surrounding areas, and we’d be happy to help you explore your options. Feel free to contact us for a free cash offer today.