August 2026 Texas Real Estate: Buyers Gain Leverage
August brought clear signals that the Texas housing market is shifting. Buyers are gaining negotiating power, sellers are adjusting expectations, and price reductions are becoming more common across the state. Meanwhile, the Texas Real Estate Commission (TREC) is moving forward with key rule amendments and committee appointments.
Here is what you need to know from August 2026.
Texas Buyers Gain Leverage as Sellers Cut Prices
Texas buyers have more negotiating power than they have had in years. All four major Texas metros — San Antonio, Austin, Houston, and Dallas — now rank among the most favorable markets for buyers in the country.
San Antonio leads the way with 28.2% of listings receiving price reductions — the highest share among major U.S. cities. Nearly one-third of listings in Dallas have also seen price cuts.
The broader market data confirms the trend:
- Median home price in Texas fell to $335,000, down 9.46% year-over-year
- Homes are taking a median of 73 days to sell
- Only 8.84% of homes are selling above asking price, with a sale-to-list ratio of 96.96%
- The state has nearly 183,000 active listings, representing 5.6 months of housing supply
Nationally, the median U.S. listing price reached $428,950 in July, declining 2.4% compared with July 2025 — the ninth consecutive month of annual declines. Home prices rose in 80% of U.S. metro markets in Q2 2026, but Texas saw some of the sharpest corrections. Austin in particular experienced a significant year-over-year decline in median listing price per square foot.
What this means: Buyers have more choices and more room to negotiate. Sellers need to price accurately — overpriced homes are sitting longer and requiring reductions to attract interest.
“Texas may be offering a glimpse of what a healthier housing market looks like. Despite its booming economy and growing population, the state's housing market is cooling rather than overheating.” — Alan Goldberg, lead data analyst at BestBrokers
Texas added more than 315,000 residents over the past year and saw total personal income grow by nearly $96 billion. Yet median home prices fell 9.46% year-over-year. The state’s robust housing supply — nearly 183,000 active listings — is helping keep affordability in check.
Texas is now the 20th most affordable state for homebuyers, with a median home price 4.54 times annual per capita income of $73,785. For context, Arizona homes cost 6.39 times income and California more than eight times.
TREC to Meet August 10: Rule Amendments and Appointments
The Texas Real Estate Commission will hold a meeting on August 10 at 10:00 AM in Austin, where commissioners will discuss committee reports, rule amendments, and upcoming appointments.
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Rule amendments related to broker responsibility, qualifying and continuing education requirements, and updates to the Standards of Practice for Texas real estate inspectors
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Advisory committee appointments — applications are due August 14, with appointments to be made at the November 9 TREC meeting and service beginning January 1, 2027
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Fiscal year 2027 draft budget and related financial policies
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Approval of Broker Responsibility Course text for 2027–2028
- Topics for an upcoming workshop in November
The meeting will open with reports from the Commission's advisory committees. Members of the public may attend in person or view via livestream. The Broker Responsibility Advisory Committee also met earlier in August.
SB 17 Foreign Ownership Rules Nearing Finalization
Texas Senate Bill 17, which took effect September 1, 2025, broadly restricts individuals and entities from China, Iran, North Korea, and Russia from purchasing Texas real property. The Texas Attorney General published proposed rules to implement SB 17 on March 27, 2026.
The OAG has received public comments and is required to adopt or withdraw the finalized rules by September 27, 2026.
What this means for agents: Licensed real estate professionals may be required to report suspected violations to the Office of the Attorney General under the proposed rules. The final version is expected soon.
New Laws and Forms to Watch
SB 785 — Manufactured Home Zoning
Texas law now requires cities with zoning regulations to permit HUD-code manufactured homes by-right in at least one residential zoning district. This modernizes how manufactured homes are zoned and where they are allowed in Texas cities.
TREC Back-Up Contract Addendum (11-9)
The updated Addendum for "Back-Up" Contract (TREC 11-9) — mandatory since July 2026 — changes the effective date to when the seller delivers termination notice to the buyer, not when the buyer receives it.
What's Next for Texas Real Estate Professionals
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August 14: Deadline for TREC advisory committee applications
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September 27: Deadline for OAG to finalize SB 17 foreign ownership rules
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November 9: TREC meeting where committee appointments will be made
- January 1, 2027: New committee members begin service
Staying current on market trends, regulatory updates, and TREC rules is essential for Texas real estate professionals.
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