Texas Real Estate 2026: Market Normalizes and Rules Shift for Agents

Texas real estate has settled into a more balanced market in 2026. Sales are up modestly, inventory has stabilized, and prices have adjusted. At the same time, new rules for buyer representation and compensation have reshaped how agents work.

Here is what agents need to know about the Texas market and the rule changes taking effect.

Quick Summary

• Home sales rose 8.6% year-over-year in June 2026
  
• Median price was $342,900 in June, down from $350,000 a year earlier
  
• Inventory sits at about 5.4 months' supply, down slightly from a year ago
  
• Written buyer agreements are now required before showing residential property
  
• Compensation is negotiable and must be disclosed in writing

The Market: Balanced, Not Booming

Texas housing activity gained momentum through the first half of 2026. Closed sales outpaced last year for several consecutive months, suggesting underlying demand remains resilient despite higher mortgage rates.

Statewide snapshot:

• June recorded 34,956 closed sales, an 8.6% year-over-year increase
  
• Year-to-date sales were 3.2% higher than the same period last year
  
• Median sale price reached $342,900, up slightly from May but down from $350,000 a year earlier
  
• Active inventory was at 5.4 months' supply, down from 5.6 months a year ago

Fort Worth-Arlington has shown the most consistent rebound, recording consecutive months of modest price gains. Austin and San Antonio continue to see more pronounced price corrections, while Dallas-Fort Worth and Houston are moving toward stabilization.

What this means for agents: Buyers have more choices and more negotiating power. Sellers need to price realistically from day one. The market is healthier and more sustainable than the pandemic-era frenzy.

New Rules for Buyer Representation

The biggest regulatory change in 2026 is the requirement for written buyer representation agreements. Under SB 1968, which took effect January 1, the Texas Real Estate License Act now mandates written agreements for brokerage activities performed for prospective buyers of residential property.

What agents must do:

• Enter into a written agreement with a buyer before showing residential property
  
• If no property is shown, the agreement must be signed before presenting an offer

What the agreement must include:

• Services the license holder will provide
  
• Termination date (no more than 14 days for non-representation agreements
  
• Whether the agreement is exclusive or non-exclusive
  
• Whether the license holder represents the buyer
  
• Compensation amount or rate and how it is determined
  
• Conspicuous language that compensation is negotiable

Non-representation showing: A license holder may show property without representing the buyer if certain requirements are met. This includes not providing opinions or advice and providing the IABS form.

Compensation: What Changed

The NAR settlement and SB 1968 decoupled seller and buyer agent compensation. Seller-offered buyer-agent compensation can no longer be published in the MLS.

How buyer's agents get paid now:

• Seller concession — The most common approach in Texas
  
• Buyer pays directly — The buyer pays their agent out of pocket
  
• Hybrid — Part from seller, part from buyer

Texas average commission in 2026 is 5.88% of the sale price, above the national average of 5.70%. Buyer-agent compensation in Texas runs around 2.95% as of February 2026 data.

Continuing Education for the 2026-2027 Cycle

Texas real estate license holders need 18 hours of CE every two years. The breakdown:

Brokers: The 6-hour Broker Responsibility course is now mandatory for all brokers, regardless of whether they sponsor agents. This leaves brokers with only 1 elective hour.

Deadline: The 2026-2027 Legal Update I and II courses must be completed by 11:59 PM Central Time on December 31, 2027.

The Bottom Line

Texas real estate in 2026 is balanced and sustainable. Sales are up, inventory has stabilized, and buyers have more leverage. The rule changes around buyer representation and compensation are significant — but they protect consumers and bring more transparency to the process.

Agents who stay current on the market and the new rules will serve their clients well.

Time2Renew offers TREC-approved CE courses for the 2026-2027 cycle — Legal Updates I and II, contract courses, and electives. Online and self-paced.

👉 Start your Texas real estate CE with Time2Renew

About Time2Renew: We help Texas real estate professionals complete CE requirements quickly and without stress. TREC-approved. Online, self-paced, and built for busy agents. Start today.