Are Home Prices Dropping in Texas in 2026? Top 10 City Breakdown

Many buyers and sellers across Texas are asking the same question in 2026: Are home prices finally coming down, or is the market still strong?

The short answer is this. Some markets are seeing small price adjustments, while others remain stable or are still growing. Texas is not one single housing market. Each city behaves differently based on jobs, population growth, and housing supply.

Here is a clear look at how the top 10 Texas cities are performing and what it means for you.

Statewide Texas Housing Market Overview

Across Texas, the housing market has shifted from the fast paced growth of recent years into a more balanced environment.

Most major metros are seeing:

• Slower price growth
• More homes for sale
• Longer days on market
• Strong but cautious buyer demand

This does not mean prices are crashing. It means buyers have more choices and sellers need better pricing and presentation.

Now let’s look at each major city.

Austin Housing Market

Austin’s 2026 housing market shows the typical home value around $495,000, with prices down about 6.1% over the past year and homes averaging roughly 81 days to pending, reflecting a cooling but still active market. Buyers have more options than in recent boom years, while sellers need strong pricing and presentation to stay competitive.

In 2026, Austin is showing:
• More inventory than past years
• Stable to slightly lower prices in some areas
• Strong demand in top neighborhoods

What this means
Buyers have more negotiating power than before. Sellers must price carefully to stay competitive.

San Antonio Housing Market

San Antonio home values have softened with the average home value around $245,000 and prices down about 3% year-over-year, while homes are taking longer to go under contract compared with recent years. Buyers are seeing more options and negotiating power as inventory grows, making this a more balanced market than the frenzied conditions of past years.

Current trends include:
• Steady buyer demand
• Modest price changes
• Consistent population growth

What this means
Prices are holding steady overall. Well priced homes still sell quickly, especially in popular school zones.

Dallas Housing Market

Most homes in the Dallas-Fort Worth area saw estimated values soften over the past year, with Zillow data indicating roughly 87% of homes experienced a decline in value. Despite this pullback, equity remains strong and increased resale inventory is giving buyers more choices while prices stay well above pre-pandemic levels.

In 2026, Dallas is seeing:
• Balanced supply and demand
• Slower appreciation
• Stable luxury and suburban markets

What this means
Buyers have more time to decide. Sellers benefit from strong employment growth in the region.

Fort Worth Housing Market

In Fort Worth, the typical home value is $292,000 with year-over-year prices showing mild declines as the market cools from prior highs. Homes are also taking a bit longer to sell, giving buyers more time to make decisions while sellers focus on pricing smartly to stay competitive.

Market conditions include:
• Growing new construction
• Moderate price adjustments
• Strong family buyer demand

What this means
Buyers may find better opportunities in newer communities. Sellers should expect more competition.

Houston Housing Market

Houston’s housing market in 2026 is balancing out with typical home values around $260,000 and prices down about 3% year-over-year, while homes are taking longer to sell compared with recent years. Buyers are finding more choices and negotiating power as inventory rises, and forecasts predict a more balanced market with modest price movement rather than sharp declines.

Current trends show:
• Large inventory levels
• Steady home values
• Strong demand in inner loop areas

What this means
Prices are not dropping sharply, but buyers have many choices. Sellers need strong marketing to stand out.

Plano Housing Market

Plano’s housing market in 2026 is showing a modest cooling trend, with the median home sale price around $515,000 and year-over-year prices down slightly. Homes are staying on the market longer and inventory has increased, giving buyers more options while sellers need thoughtful pricing to compete.

In 2026:
• Limited housing supply
• Consistent buyer interest
• Stable pricing

What this means
Prices remain firm. Desirable homes continue to receive multiple offers when priced correctly.

Frisco Housing Market

Frisco’s housing market in 2026 shows a median sale price near $650,000 with year-over-year prices down modestly, and homes spending more time on market compared with the past peak years. Buyers are seeing slightly more options and negotiating power, while sellers still benefit from strong long-term demand but need careful pricing to compete.

Market conditions include:
• Ongoing development
• High quality housing stock
• Strong resale demand

What this means
Prices remain strong. Buyers may find value in newer subdivisions. Sellers benefit from demand.

Round Rock Housing Market

Round Rock benefits from its proximity to Austin and major employers. Round Rock’s housing market in early 2026 has a median sale price around $387,000, with prices down about 3.5% year-over-year and homes taking over 100 days to sell. Buyers are seeing more inventory and negotiation leverage, while sellers benefit from the city’s continued desirability but must price carefully.

Current trends show:
• Balanced inventory
• Modest price changes
• Strong commuter demand

What this means
Buyers have more flexibility than in past years. Sellers should focus on condition and presentation.

McKinney Housing Market

McKinney’s housing market in early 2026 shows a median home sale price around $580,000, with homes selling in about 59 days on average, and more homes being sold compared with last year. Buyers are seeing a bit more market activity and inventory, while sellers still benefit from a traditionally strong market but should focus on competitive pricing.

In 2026:
• Stable home values
• Steady buyer interest
• Limited price drops

What this means
Prices are holding steady. Homes in good condition sell well.

Georgetown Housing Market

Georgetown’s housing market remains competitive in 2026 as buyers continue to be drawn to both its historic neighborhoods and new master-planned communities, reflecting strong demand from retirees, remote workers, and commuters. While price data isn’t the focus of the article, the ongoing competition for homes suggests stable demand and healthy interest across the market.

Market trends include:
• Strong retiree and family demand
• Ongoing development
• Stable pricing

What this means
Buyers may find opportunities in new communities. Sellers benefit from continued population growth.

What This Means for Texas Homebuyers

If you are buying in 2026, this market offers more balance than in recent years.

Key advantages include:
• More homes to choose from
• Less bidding war pressure
• Better negotiation opportunities
• Time to complete inspections and research

This is a healthier market for most buyers, especially first time and move up buyers.

What This Means for Texas Home Sellers

Sellers can still achieve strong results, but strategy matters more than ever.

Successful sellers focus on:
• Accurate pricing
• Professional photos
• Move in ready condition
• Strong online exposure
• Flexible showing schedules

Overpriced homes are staying on the market longer. Well prepared homes continue to sell.

Are Home Prices Dropping in Texas? The Bottom Line

In 2026, Texas home prices are not collapsing. Instead, most cities are experiencing a shift toward stability and balance. Some areas may see small declines. Others remain steady or continue modest growth. Local conditions matter more than statewide headlines. This is why working with a knowledgeable local Realtor® makes a real difference.

Thinking About Buying or Selling in Texas?

Whether you are buying your first home, relocating, or preparing to sell, having accurate local data is key. At Homecity Real Estate, we help clients understand their specific market and make confident decisions. If you would like a personalized market analysis for your city or neighborhood, we are here to help.