The Texas Housing Market: What Buyers Should Know Right Now
A straightforward look at what's happening in the Texas real estate market and what it means for your home search.
Texas Continues to Grow
Texas remains one of the fastest-growing states in the country. People are moving here for jobs, affordability compared to coastal cities, no state income tax, and a high quality of life. That continued demand keeps the housing market active.
For buyers, this means homes in desirable areas can still move quickly. Being prepared with a pre-approval is more important than ever.
Interest Rates: The Big Picture
Interest rates have been a hot topic. While they've fluctuated over the past couple of years, it's important to remember that rates in the 6-7% range are historically normal. The ultra-low rates of 2020-2021 were the exception, not the rule.
Here's what I tell my buyers: don't try to time the market. If you find a home you love at a payment you can afford, that's a good deal. You can always refinance later if rates drop — but you can't go back in time to buy a home that's appreciated in value.
Inventory Is Improving
Good news for buyers: housing inventory in many Texas markets has been increasing. This means more homes to choose from and less of the frantic bidding wars we saw in previous years.
More inventory also means more negotiating power. In some areas, buyers are successfully negotiating seller concessions toward closing costs — something that was nearly impossible during the peak of the seller's market.
New Construction Opportunities
Texas has a robust new construction market, especially in suburban areas around major cities. Builders are often offering incentives like rate buydowns, closing cost assistance, and upgrades to attract buyers.
If you're open to new construction, these incentives can significantly reduce your out-of-pocket costs. I work with buyers purchasing new builds regularly and can help you navigate builder contracts and financing options.
Property Taxes: Plan Ahead
One thing that catches some buyers off guard is Texas property taxes. Without a state income tax, Texas relies more heavily on property taxes, which average around 1.6-1.8% of your home's assessed value per year.
On a $350,000 home, that could mean $5,600-$6,300 per year in property taxes. I always make sure my buyers understand the full cost of homeownership — not just the mortgage payment — so there are no surprises.
What This Means for You
The Texas market offers real opportunities for buyers who are prepared. The key is working with professionals who know the local market and can help you move quickly when the right home comes along.
Whether you're buying your first home or your next one, the best time to start is now — with a conversation about your goals and a plan to get you there.
Ready to Make Your Move?
Let's talk about your home buying goals and how the current market works in your favor.