Texas Real Estate News: August 2026 Market & TREC Updates

August brought a mix of news for the Texas housing market — from shifting buyer power and price corrections to new affordability initiatives and major TREC form updates. Here is what you need to know.

Texas Buyers Gain Leverage as Prices Soften

Texas buyers are finding more negotiating power as home prices continue to ease across the state's four largest metros. According to Homes.com data, median home prices from April 2025 to April 2026 declined in Austin, Dallas-Fort Worth, Houston, and San Antonio — bucking the national trend, where median prices rose 1.7% year-over-year.

Key August market data:

• Austin posted the largest decline, while Dallas-Fort Worth showed the greatest stability with prices dropping just 0.1% year-over-year
  
• Houston continues to set records for active listings, exceeding 40,700 in March and adding over 2,000 more in April
  
• Dallas leads the nation in new-home construction activity with 11,327 new building permits issued in early 2026

The state's robust housing supply — active inventory rose 3% month-over-month in March and remains significantly higher than a year ago — is helping keep affordability in check.

Governor Abbott Unveils New Housing Affordability Initiatives

Governor Greg Abbott announced two new affordability proposals as part of his Keep Texas Affordable agenda, aimed at expediting the permitting process and accelerating home construction across Texas.

Key proposals:

• Allow builders to use third-party inspectors for permitting
  
• Require local authorities to make an occupancy determination within 10 days
  
• Allow pre-approved home designs to be built in other parts of the state

Abbott also threatened to withhold sales tax revenue from cities that impose costly local mandates blocking housing development. He cited examples like a North Texas suburb requiring Olympic-size swimming pools in new apartment complexes as the kind of regulation that drives up costs. The legislation has not yet been formally introduced.

TREC Water Rights Disclosure Now Mandatory

Effective July 1, 2026, all TREC promulgated contracts must include information about water rights. The new Seller's Disclosure About Groundwater and Surface Water Rights (TREC 61-0) form is now mandatory.

What changed:

• TREC has added a water notice paragraph to all promulgated contracts
  
• The form includes a general disclosure about water rights, followed by three options for whether the buyer receives the separate TREC 61-0 form
  
• Sellers only need to state what they know — if they are unaware of water rights information, they can specify that

What agents need to know: Unless you are an attorney or hydrological engineer, you are barred from interpreting water laws. However, it is your duty under TREC rules to make clients aware of the disclosure requirement and recommend expert advice when appropriate.

SB 1968: Buyer Representation Changes Now in Effect

Senate Bill 1968, effective January 1, 2026, introduced major changes to buyer representation in Texas.

Key requirements:

• Real estate license holders must enter into a written agreement with prospective buyers before showing properties or presenting offers
  
• The agreement must detail services provided, agreement terms, and broker compensation
  
• Brokers may show property without representing the buyer under specific conditions

IABS form updates reflect the new law, introducing a non-representation status and removing references to subagency.

TREC Form Changes in 2026

Multiple TREC form updates took effect in 2026:

• July 1, 2026: New water rights disclosure (TREC 61-0) and other revised forms became mandatory
  
• June 15, 2026: Texas REALTORS® forms updated, including the Residential Real Estate Listing Agreement Exclusive Right to Sell (TXR 1101)
  
• January 1, 2026: New eviction reform laws requiring landlords to provide a Notice to Pay Rent or Vacate

Multifamily Permitting Shifts Away from Texas

Multifamily construction is slowing across Texas. Dallas, Houston, Austin, Fort Worth, and San Antonio collectively permitted 45,062 units during the year ending in June, less than half their February 2023 peak of nearly 97,000.

Key multifamily permitting data:

• Austin fell by 4,321 units to 8,760, less than half its previous peak of nearly 22,000
  
• San Antonio declined by 2,552 units to only 1,126, down from 13,248 in June 2023
  
• Dallas remained the nation's second-largest permitting market with 16,711 units, despite a 7% year-over-year decline
  
• Houston ranked fifth with 12,521 units, down 13%

International Buyer Activity in Texas

Texas continues to attract international buyers. According to NAR's 2026 International Transactions report, Texas accounts for 12% of U.S. transactions with international clients, behind California at 19%.

Key trends:

• Dallas outpaced Houston with 2.7% of international traffic to Houston's 2.4%
  
• Austin and San Antonio combined for another 2.1%
  The median sale price for Texas property to international
• buyers is approximately $420,800 — notably higher than the state median

International buyers are gravitating toward Sun Belt cities, particularly in Florida and Texas, where lower taxes and comparatively lower housing costs attract buyers.

What's Next for Texas Real Estate Professionals

• Stay current with TREC forms: The new water rights disclosure (TREC 61-0) and other revised forms are now mandatory
  
• Review buyer representation agreements: Ensure you are using the correct forms under SB 1968
  
• Monitor affordability legislation: Governor Abbott's proposals could affect permitting and construction timelines
  
• Complete continuing education: The 2026-2027 CE cycle is underway — Legal Updates I and II cover these regulatory changes

Stay Informed with Time2Renew

The Texas real estate landscape is shifting — from market corrections and buyer leverage to new laws and TREC form updates. Staying current is essential for real estate professionals.

Time2Renew offers TREC-approved continuing education courses covering the 2026–2027 cycle — including Legal Updates I and II, contract courses, and electives. All 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.