Market Tilts Toward Buyers
In the current US market, ~44% of agents described conditions as balanced, showing buyers regained negotiating power after years of stronger seller control.
Sellers also appeared more flexible: ~57% of agents had at least one active listing with a price cut, while fewer contract cancellations signaled smoother negotiations.
Late-Q2 asking prices were ↓~3% yearly, the biggest annual decline on record for the listings platform, reinforcing that sellers were competing harder.
Affordability still led buyer concerns. In the survey, ~37% of agents said mortgage rates were buyers’ top worry, while inventory concerns eased.
Near-term expectations stayed restrained: ~19% of agents expected home sales to improve in coming months, while ~67% expected activity to remain largely unchanged.
Texas Housing Market Predictions 2026
The Texas housing market in 2026 is stabilizing with home prices nearly flat, inventory up 7.4%, and homes staying on the market longer. The market is approaching a balanced state with about five months of supply, easing competition for buyers. Mortgage rates have slightly decreased, supporting affordability. Prices are expected to remain stable, and a crash is unlikely. Buyers and sellers should prioritize financial readiness over market timing.
Existing home sales surge 3.2% to highest level since December
Existing-home sales rose 3.2% in May to a seasonally adjusted annual rate of 4.17 million, the highest since December 2025, despite slightly higher mortgage rates. The median home price hit a record $429,300, marking 35 consecutive months of year-over-year increases. Affordability improved across all regions, with first-time buyers accounting for 35% of sales. Inventory rose slightly to 1.55 million units, still below normal levels.
You may not need as much down payment as you think you do
The 20% down payment on a home is a convention, not a requirement. While it avoids private mortgage insurance (PMI), saving that amount can delay buying and increase costs due to rising home prices. Loans with as little as 3% down exist, with varying PMI costs. Different loan types—conventional, FHA, adjustable-rate, and interest-only—offer flexibility. Assistance programs and hybrid loans can also help. Pre-approval reveals personalized options, and maintaining cash reserves post-purchase is crucial.
Texas Pilot Could Ripple Into Housing Demand
A workforce training program announced a $115M initial investment, with Texas included in a pilot aimed at building skilled trades talent for AI infrastructure.
An Austin agent said even a few hundred jobs can create meaningful housing demand, especially in small communities surrounding Texas data center clusters.
New residents tied to these projects could also lift retail, grocery, and service demand, extending the economic impact beyond housing in nearby Texas communities.
Another expert said housing impacts may vary because construction crews are often transient, and some new workers may already be living in Texas.
Because construction is accelerating, Texas may feel the housing-supply tension before the first class graduates, depending on whether workers build homes or AI infrastructure.
Seller Financing: The Seller Becomes the Lender
In seller financing, the seller acts as lender, helping buyers purchase directly when traditional loans are harder to secure and speeding the path to closing.
This approach can mean flexible down payments, low or no closing costs, skipped appraisals, and settlements that may happen within a week.
For sellers, offering financing can widen the buyer pool, support faster sales, and improve the chance of receiving the full asking price.
Both sides still need title work and taxes, and existing mortgages may trigger due-on-sale clauses, so experienced Real Estate attorneys are important.
Seller financing tends to gain appeal when credit markets tighten and lose appeal when lending loosens, so both buyers and sellers benefit from preparation.
Can Texas Housing Regain Momentum in 2026?
• Expanding inventory continues easing price pressures, creating a more balanced market after years of intense seller dominance.
• Population growth and business relocations remain major drivers supporting housing demand across key metropolitan areas.
• Home price growth is expected to remain modest as buyers benefit from increased options and negotiating opportunities.
• Markets such as Dallas, Houston, and Austin should see stable activity through the second half of 2026.
National Association of REALTORS Report Existing-Home Sales Report Shows 3.2% Increase in May 2026 Month-Over-Month and Year-Over-Year
Existing-home sales rose 3.2% month-over-month and year-over-year to a 4.17 million annual rate, with increases in the Northeast, Midwest, and South. Median home prices reached $429,300, up 1.3% year-over-year, marking 35 consecutive months of price gains. Housing affordability improved, with the index at 105.6. Inventory rose slightly to 1.55 million units, maintaining a 4.5-month supply. Mortgage rates averaged 6.44%.
The Complete Homebuying Guide
Buying a home involves key steps: determining your must-haves, choosing a home type, estimating mortgage affordability, and planning for down payment and closing costs. Shop for homes and lenders, get pre-approved, submit competitive offers, and conduct home inspections. After closing, maintain the property, save for emergencies, and continue retirement savings. First-time buyers may qualify for assistance programs. Preparation helps secure the ideal home within budget.
Happy Fourth of July
To all great Americans around the world, a very Happy Fourth of July to you all.
This day is incredibly significant as the day the United States officially became its own nation.
Let’s celebrate America’s birthday with festivals, parades, fireworks and other festive activities.The 4th of July marks the day America became a country where people have a right to life, liberty, and the pursuit of happiness.