Balanced, Not Broken
If you've been wondering what is really happening in the Texas housing market, the July numbers give us an interesting picture.
At first glance, one number might catch your attention: closed sales were down 4.8% compared with July 2025.
But before anyone starts yelling, “THE HOUSING MARKET IS CRASHING!”—let's take a breath. 😉
The bigger picture looks much more like a market that is continuing to move toward balance.
And as we head into August, we're also entering the time of year when summer activity naturally begins to slow. Families are wrapping up vacations, getting ready for school, shopping for supplies and clothes, attending registrations and back-to-school events—and, of course, parents everywhere are bracing themselves for tax-free weekend at the mall.
So, let's look at what the numbers are actually telling us.
📈 Home Prices Are Still Moving Up—Just Slowly
The median Texas home price was $342,901 in July 2026, up 1.2% from July 2025.
That's not runaway appreciation, but it is important.
We're not seeing a dramatic statewide drop in home prices. Instead, prices appear to be settling into a much more moderate pace of growth.
For buyers, that can mean more opportunity and less pressure than we saw during the frenzied pandemic-era market.
For sellers, it means something equally important: pricing your home correctly matters.
The days of putting a house on the market, picking a price because your neighbor got that much and waiting for multiple offers aren't necessarily today's market.
🏡 Buyers Have More Choices
Texas had 158,465 active listings in July, up 1.2% from a year ago.
More inventory means buyers have more options.
And when buyers have choices, they can take their time, compare homes and be more selective about price, condition and location.
That's great news for buyers—but it creates more competition for sellers.
If you're selling, your home needs to stand out from the other homes buyers are considering. Condition, presentation, marketing and pricing all matter.
📉 Closed Sales Were Down 4.8%
There were 30,123 closed sales in July, down 4.8% compared with July 2025.
That's certainly a number worth watching.
But it doesn't tell us the entire story.
We're moving out of the peak summer buying season and toward August, when many families shift their attention from house hunting to getting everyone ready for school.
That doesn't mean the entire decline can be attributed to seasonality. It simply means we shouldn't look at one month's sales number in isolation and assume it tells us where the entire Texas housing market is headed.
The trend matters more than one number.
And right now, the trend looks more like a market that is adjusting than one that is falling apart.
⏰ Homes Are Taking a Little Longer to Sell
Texas homes spent an average of 63 days on the market in July.
Once under contract, the average time to close was another 33 days, putting the total at 96 days from listing to closing.
That's two days longer than July 2025.
Again, not exactly a dramatic shift—but it reinforces the larger picture.
Buyers have more choices, and sellers may need a little more patience.
A properly priced home can still sell. But sellers should be prepared for today's buyers to take their time and do their homework.
🏘️ Inventory Remains at 5.6 Months
Texas had 5.6 months of inventory in July, exactly the same as July 2025.
This is one of the numbers I find particularly interesting.
We're nowhere near the extremely tight inventory levels that helped drive the bidding wars of a few years ago.
But we're also not looking at a market flooded with homes and desperate sellers.
We're somewhere in between.
And that is probably the best description of today's Texas housing market:
More balanced.
💰 Where Are Texas Homes Selling?
The price distribution also gives us a good look at the Texas market.
In July:
- 26.5% of homes were priced between $200,000–$299,999
- 23.8% were between $300,000–$399,999
- 13.3% were between $400,000–$499,999
- 14.8% were between $500,000–$749,999
- 9.5% were between $100,000–$199,999
- 5.0% were $1 million or more
In other words, about half of the homes in Texas fell into the $200,000–$399,999 range.
While luxury real estate gets plenty of attention, the largest share of the Texas housing market continues to be concentrated in the more moderate price ranges.
That's an important piece of the affordability conversation.
🌞 So What Should We Expect in August?
August can be an interesting month for real estate.
Some buyers who have been casually looking all summer may suddenly become more serious because they want to get settled before the school year gets too far underway.
Other families are simply too busy with school schedules and life to think about buying or selling right now.
And some sellers who listed earlier in the summer may start wondering:
“Why hasn't my house sold yet?”
That's where having a strategy becomes important.
If a home isn't getting showings, we need to look at the price and marketing.
If it's getting plenty of showings but no offers, we may need to look at price, condition or buyer perception.
And if offers are coming in but contracts aren't making it to closing, there may be financing, inspection or contract issues to address.
The market statistics give us the big picture. The individual property still requires individual strategy.
🏠 The Bottom Line
So, what do the July 2026 numbers tell us about Texas real estate?
The market isn't crashing. It's changing.
Home prices are slightly higher than last year. Inventory is slightly higher. Closed sales are lower, and homes are taking a little longer to sell.
Put all of that together and we get a market that is more balanced, more competitive for sellers and more choice-filled for buyers.
And honestly?
That's not necessarily a bad thing.
A healthy housing market isn't one where prices shoot up 20% a year and buyers have to waive every contingency just to get a house.
It's a market where buyers and sellers can make informed decisions based on actual conditions—not headlines, hype or fear.
That's why I like looking at the numbers every month.
The numbers tell us what's happening. Knowing what they mean is where things get interesting.
And now that we've looked at Texas as a whole, it's time to bring it a little closer to home.
Next up: Montgomery County & the Houston-area market.
Are we seeing the same trends here—or is our local market telling a different story?
🏡 For all your real estate needs, get Jacque!
Jacque Swanner | INC Realty
Serving Montgomery, Lake Conroe, DFW & beyond.
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