Texas Home Sales Rise 2.2 Percent in July Despite Rate Hikes
Texas recorded 32,306 closed home sales in July, a 2.2 percent year-over-year increase.
Texas housing market sales increased by 2.2 percent year over year in July 2026. The state recorded 32,306 closed transactions during the month. This growth followed strong performance in June. Year-to-date sales are 3.2 percent higher than the same period last year. The labor market remains a key support for demand.
Mortgage rates exceeded 7 percent ahead of the Federal Reserve’s September rate hike. Inflation data continues to pressure borrowing costs. These factors create a challenging environment for buyers. The market remains active despite these headwinds. Economic uncertainty persists into the fall.
Median Price Holds at 339,000 Dollars
The statewide median sales price stood at $339,000 in July. This figure is unchanged from the previous year. It is slightly lower than the $342,000 recorded in June. Annual price declines are moderating. Houston saw its first month without a year-over-year price drop in twelve months.
Preliminary August data suggests further easing of downward price pressure. Prices in other major metros remain mixed. The overall trend shows stabilization after months of declines. Buyers benefit from slightly improved pricing conditions. Sellers face limited room for price increases.
Inventory Trends and Regional Variance
Active inventory is expected to retreat from its summer peak. Seasonal demand slows as fall approaches. Sellers are reducing new-listings activity. This moderation limits further inventory accumulation. Buyers still have more choices than in previous tight markets.
Regional sales performance varied significantly in July. Austin saw an 11.7 percent year-over-year gain in sales. The Dallas-Fort Worth area experienced a 1.5 percent drop. Austin’s year-to-date sales pace is 9 percent above last year. National non-seasonally adjusted sales rose 3.1 percent. The national median price reached $442,500.
Rate Hikes Limit Future Sales
Higher financing costs are the primary headwind for the market. The Federal Reserve raised rates by 25 basis points on September 16. Capital markets priced in a higher rate environment earlier. This action pushed borrowing costs up before the decision. Mortgage rates trended higher ahead of the meeting.
Pending sales data points to weaker activity in August. The seasonally slower period will weigh on transactions. Household income growth supports some demand. However, the new rate environment will suppress sales. The outlook for the remainder of the year remains subdued. Source data from GN auto markets/housing: housing prices confirms these trends.
