May 2026: A Strong Month for Both Texas Powerhouses

If you're wondering whether Houston or Dallas-Fort Worth had the stronger housing market in May 2026, the answer is simple: both markets had a very solid month, just in different ways.

While neither market saw major price increases compared to last year, both continue to demonstrate stability, healthy inventory levels, and strong buyer activity. For buyers, there are more options than we've seen in recent years. For sellers, well-priced homes are still attracting attention and getting sold.

Dallas-Fort Worth: Steady and Balanced

The Dallas-Fort Worth-Arlington MSA continued to show remarkable stability during May.

Key Numbers

  • Median Home Price: $400,000 (up 1.3% from May 2025)
  • Active Listings: 34,220 (down 3.2%)
  • Closed Sales: 9,233 (up 0.5%)
  • Months of Inventory: 4.4 months
  • Total Days from Listing to Closing: 88 days

One of the most encouraging signs for DFW sellers was the decline in active listings. With fewer homes competing for buyers' attention and closed sales ticking upward, the market remained balanced while continuing to favor well-prepared sellers.

Inventory remains healthy at 4.4 months, giving buyers choices without creating significant downward pressure on prices. The median sales price increased modestly by 1.3%, showing that home values continue to hold steady.

What This Means for DFW

For buyers, there are still opportunities to negotiate on some properties, particularly homes that have been on the market longer. For sellers, pricing correctly from day one remains critical, but demand is still strong enough to support stable values.

Houston: More Choices, More Competition

The Houston-Pasadena-The Woodlands market delivered another strong month, though the dynamics were a little different than DFW.

Key Numbers

  • Median Home Price: $340,000 (up 1.1% from May 2025)
  • Active Listings: 38,223 (up 2.7%)
  • Closed Sales: 8,585 (down 4.1%)
  • Months of Inventory: 5.2 months
  • Total Days from Listing to Closing: 85 days

Houston's inventory continues to grow, giving buyers more options than they have had in years. With over 38,000 active listings available, buyers are finding themselves with greater negotiating power and more opportunities to shop around.

While closed sales declined slightly compared to last year, home prices remained stable, increasing 1.1%. This suggests that demand remains healthy even as inventory levels rise.

What This Means for Houston

Buyers are benefiting from increased selection and potentially greater negotiating opportunities. Sellers can still achieve strong results, but homes must be priced competitively and marketed effectively to stand out from the growing inventory.

Houston vs. Dallas: Who Won May?

Looking strictly at the numbers:

🏆 Dallas-Fort Worth wins on sales activity

  • Closed sales increased 0.5%
  • Active listings decreased 3.2%
  • Inventory remained lower at 4.4 months

🏆 Houston wins on buyer opportunity

  • More available homes
  • Higher inventory at 5.2 months
  • Greater selection across multiple price points

The real winner, however, may be Texas buyers and sellers. Both markets have moved away from the extreme conditions we experienced a few years ago and into a healthier, more balanced environment.

My Take

What stands out most is how resilient both markets continue to be.

Despite higher interest rates and economic uncertainty, home prices remain remarkably stable. Dallas-Fort Worth continues to benefit from strong job growth and corporate relocations, while Houston's affordability and expanding inventory make it attractive for both first-time buyers and move-up purchasers.

Whether you're looking around Lake Conroe, Montgomery County, Houston, Dallas, Fort Worth, or anywhere in between, today's market rewards preparation and local expertise more than ever.

Every neighborhood tells a different story, and understanding those local trends can make a significant difference when buying or selling.

Thinking About Making a Move?

I'd be happy to help you understand what these statewide trends mean for your specific neighborhood and home value.

For all your real estate needs, Get Jacque!

Serving Montgomery, Lake Conroe, Houston, DFW & beyond.

 

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