July 2026 Real Estate Market Recap

Houston and Dallas are like two Texas siblings who grew up in the same family but apparently didn't get the memo that they were supposed to behave alike. 😂

They're both dealing with a slower sales environment, but they're getting there in very different ways.

Houston has more inventory and rising prices, while Dallas-Fort Worth has fewer listings and a slight dip in prices.

Same state. Same month. Very different housing stories.

And that's exactly why when someone says, “The Texas housing market is doing ______,” my first question is:

“Which Texas housing market?” 😉

Let's look at what July's numbers are telling us.

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🤠 Houston vs. Dallas at a Glance

Right away, you can see why a statewide headline doesn't tell the whole story.

Houston's median price is up 1.9%, while DFW's is essentially flat at -0.3%.

Houston has 4.1% more active listings, while DFW actually has 3% fewer than a year ago.

And both markets saw fewer closed sales, but DFW's decline was steeper.

So what's going on?

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🏠 Houston: More Inventory, But Prices Are Still Holding

The Houston-Pasadena-The Woodlands market had a median home price of $344,999 in July, up 1.9% from July 2025.

At the same time, active listings increased 4.1%, reaching 41,512 homes.

That's an interesting combination.

Buyers have more choices, but those additional choices haven't pushed the median price downward.

Closed sales, however, were down 6%, with 7,801 homes closing during the month.

Homes averaged 53 days on the market, followed by another 34 days to close.

That's 87 days from listing to closing, three days longer than last year.

So Houston is showing us a market with more inventory, slightly longer marketing times and slower sales—but prices are still edging upward.

The Houston market seems to be saying:

“We're slowing down a little, but we're not giving up our prices just yet.”

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🤠 Dallas-Fort Worth: A Different Story

Now let's head north.

The Dallas-Fort Worth-Arlington market had a median home price of $399,000 in July, down just 0.3% from July 2025.

And I want to emphasize the word just.

A 0.3% change is pretty darn close to flat. It doesn't mean DFW home values suddenly fell off a cliff.

But some of the other numbers are worth watching.

DFW had 36,049 active listings, down 3% from last year.

Closed sales were down 8.6%, with 8,096 homes closing.

That's a considerably larger decline in sales than Houston experienced.

Homes spent an average of 55 days on the market, followed by 32 days to close—again, 87 days total.

Interestingly, that's actually one day faster than July 2025.

DFW also had 4.7 months of inventory, down slightly from 4.8 months last year.

So Dallas-Fort Worth has fewer listings and slightly less inventory, while closed sales are declining more significantly.

That's a very different story from Houston.

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🔄 So…Is the Market Turning?

Yes—but here's the important part: it's not necessarily turning the same way everywhere.

Markets don't flip a switch overnight.

A housing market “turn” usually happens gradually.

Inventory changes.

Buyers become more selective.

Sellers adjust their expectations.

Homes take a little longer to sell.

Negotiations change.

And eventually, the numbers start showing us that the balance between buyers and sellers has shifted.

But Houston and Dallas are a perfect reminder that there isn't one single Texas housing market.

Houston is showing:

More inventory + rising prices + slower sales

Dallas-Fort Worth is showing:

Less inventory + essentially flat prices + an even bigger slowdown in sales

Same state.

Same month.

Different direction.

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💰 And Then There's the Price Distribution

The price distribution gives us another interesting look at the differences between the two markets.

In Houston, 28.8% of homes were in the $200,000–$299,999 range, while another 25.4% were between $300,000 and $399,999.

That's more than half of the market concentrated between $200K and $400K.

In DFW, 20% were between $200,000 and $299,999, while 25.9% were between $300,000 and $399,999.

DFW also had a larger share of homes in the $500,000–$749,999 range: 20% compared with Houston's 14.8%.

So while both markets have substantial activity in the middle price ranges, the overall price distribution isn't identical.

And once again, that's why where you are looking matters.

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🌞 And Now We Head Into August…

Here comes another wildcard: back-to-school season.

Summer vacations are winding down.

School shopping is happening.

Registration and activities are starting.

And parents everywhere are discovering that apparently one child needs approximately 37 different school supplies, none of which they have in the house. 😂

It's completely normal for summer housing activity to begin shifting as we head toward August.

Some buyers will want to get moving before school gets too far underway.

Others will put their home search on hold until life settles down.

The question we'll be watching is whether any changes we see over the next few months are simply seasonal or part of a larger market shift.

That's why we keep looking at the numbers.

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🏡 What Does This Mean for Buyers and Sellers?

For buyers:

You may have more negotiating room than you did a few years ago, but that doesn't mean every seller is desperate.

A well-priced, desirable home can still attract attention.

For sellers:

Today's buyers have options.

That means pricing, condition, presentation and marketing matter.

Looking at what your neighbor sold for months ago isn't enough. We need to know what you're competing against right now.

For everyone:

Don't make a major real estate decision based on a national headline.

Look at your local market.

Because as Houston and Dallas are showing us, even two major Texas markets can be telling completely different stories at the exact same time.

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📊 The Bottom Line

So what are the Texas siblings doing this month?

Houston is heading one direction. Dallas is heading another.

Neither market is screaming “crash.”

Instead, we're seeing markets adjust—and they're adjusting at different speeds and in different ways.

And that's actually one of the most important things to understand about real estate:

The market doesn't turn everywhere at the same time.

It turns locally.

So when you hear someone say, “The Texas housing market is up!” or “The Texas housing market is slowing down!”

Ask:

“Which Texas housing market?”

Because Houston isn't Dallas.

Dallas isn't Austin.

Austin isn't San Antonio.

And Montgomery isn't Houston proper.

Real estate is local. Really local.

And that's why I don't just watch the headlines. I watch the numbers.

Next month, we'll see whether our two Texas siblings keep going their separate ways—or whether one of them decides to turn around and follow the other. 😂

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🏡 For all your real estate needs, get Jacque!

Jacque Swanner | INC Realty
Serving Montgomery, Lake Conroe, DFW & beyond.

 

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