As of early 2026, the Texas housing market is experiencing a significant slowdown, with home sales decreasing due to high interest rates, elevated inventory, and reduced affordability.
Statewide, existinghome sales dropped over 8% in early 2026, with major metros like Austin, Dallas, and San Antonio experiencing muted activity and increased inventory.
The housing market in Lubbock is experiencing a significant slowdown characterized by increasing inventory and longer times on the market, shifting the area into a buyer-friendly market. While national markets struggle with record-high prices, Lubbock is seeing a correction, with many sellers reducing prices.
For single-family homes, the $239,004 median selling price in Lubbock County was down 4.4% in January from $249,990 the month prior. Since January 2025, the sales price of single-family homes was up 2.6% from a median of $233,000.
Condominiums and townhomes decreased by 39.8% in sales price during January to a median of $220,312 from $365,735 in December. Compared to January 2025, the sales price of condominiums and townhomes was down 23.1% from $286,615.
Data from early 2026 shows a continued decline in both new and existing home sales across Texas. Active listings in Texas have increased significantly, with months of supply rising above five months, indicating a shift toward a more balanced, buyer-friendly market.
While some areas see price stability, others are experiencing downward pressure on home prices, with inventory taking longer to sell - averaging over 70 days, according to the Texas Real Estate Research Center. More sellers are adjusting prices or offering concessions to entice buyers in a cooling market, according to data from the Austin Board of Realtors.
The market is showing signs of a 'weakening' trend as of early 2026, according to a report from National Mortgage Professional, characterized by lower sales volume compared to the previous year. More sellers are adjusting prices or offering concessions to entice buyers in a cooling market.
Driving factors include elevated mortgage rates which have dampened buyer demand and reduced affordability, reduced turnover and the inventory of homes growing and slowdown in sales activity, and the pandemic-era housing market subsiding and returning to a more normal pace.