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2026-03-27
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Buy Now or Wait? Your Guide to Houston’s 2026 Housing Market
2017-04-24
- A Balanced Market: Houston currently offers a 4.7-month inventory, the most balanced supply for buyers since 2019.
- The Cost of Waiting: Waiting for lower market rates often leads to increased competition and higher home prices that can offset interest savings.
- Immediate Savings: The Texas Bay Mortgage Rate Sale allows qualified buyers to lock in a lower promotional rate today, bypassing the national "wait and see" game.
If you’re considering buying your next home in Greater Houston, the unpredictable housing market likely has you torn between making an offer now and waiting. What if prices and rates drop after you buy? What if they spike while you wait?
At Texas Bay Credit Union, we want your next move to be an informed one, whether it’s your first home or your forever home. That’s why we’re sharing what we know about the Houston real estate market as of early 2026.
The State of the Real Estate Market in Houston
Right now, the Houston market is the steadiest it’s been in years. Available single-family homes have surpassed 34,500. This 4.5 to 4.7-month supply (meaning it would take up to 4.7 months to sell them all) creates a more balanced market for both buyers and sellers, according to the Greater Houston Partnership.
- More Choices: With a higher number of listings, especially in suburbs like Sugar Land and Pearland, you’ll have time to visit homes and think before making an offer.
- More Leverage: Homes now average 66 days on market. This takes the pressure off “panic-buying,” and could even help you negotiate concessions such as contributions toward closing costs or a home warranty.
- Stable Pricing: While the average price continued to grow due to the luxury market, the median price and price per square foot has seen a slight decline in Houston, according to the Houston Association of REALTORS® (HAR).
Why Waiting Could Cost You
According to FreddieMac, national mortgage rates have dropped in the last year, making it tempting to wait for them to continue falling. However, Bankrate states that historical trends suggest once rates drop, you’ll be far from the only buyer rushing to make an offer on a home.
In fact, a 1% drop in market rates often triggers bidding wars, which can drive home prices up by nearly 5%, according to a nationwide study. Instead of waiting, prospective homebuyers in Houston are finding other ways to address mortgage rates:
- Refinancing: Many Houstonians "buy the price and date the rate." By purchasing now while competition is lower, buyers secure the home at today's price, with the option of refinancing later if market rates fall.
- Mortgage Rate Sales: If you want to take advantage of the current market’s lower prices without risking a rate that may not drop enough to refinance, seek a lender that can offer you a discounted rate. While these rates are offered for a limited time, locking one in now means you won’t have to wait for a better market.
Learn how you can secure a discounted mortgage rate with Texas Bay.
3 Steps to Buying Your Next Home
To make the most of this market, you need to follow three steps before you start shopping:
- Improve Your Credit: A strong credit score helps you get the best rate possible. Need help with this? Texas Bay offers FREE credit enhancement services.
- Manage Your Debt: Keeping your debt-to-income (DTI) ratio under 41% strengthens your application as a buyer. Get a free financial wellness check to see where you stand.
- Get Pre-Approved: A pre-approval from your lender shows sellers you are a serious buyer. Better yet, getting pre-approved with Texas Bay during a mortgage rate sale will lock your discounted rate for 60 days.
FAQ: Houston Real Estate in 2026
Is 2026 a good year to buy a house in Houston?
It depends on your own financial situation, but it’s a much better time to buy than it was one year ago. In 2026, we’re seeing a more stable market with more available homes and less competition than in recent years.
What is the Texas Bay Mortgage Rate Sale?
It’s a limited-time, discounted interest rates special for qualified members.
How long does it take to close on a home?
The typical Houston closing timeline currently ranges from 30 to 45 days once your offer is accepted. However, with the right lender and creditworthiness, you can qualify for a quick close program and close in as few as 15 business days.
What are the average mortgage rates right now in Houston?
As of March 2026, 30-year fixed-rate mortgages are averaging approximately 6.125% APR to 6.50% APR; 15-year fixed-rate mortgage rates average between 5.50% APR and 5.875% APR, according to Houston Association of Realtors (HAR).
The Verdict: Should You Act Now?
- Buy Now If the homes you’re considering fit your price range, you’ve saved for a down payment, and your credit score can help you secure a reasonable rate, then yes, buy now
- Wait: If you’re still saving for a down payment, strengthening your credit, or working towards other foundational savings goals, then wait to buy.
The right time to buy is when it makes sense for your financial situation. Ready to make your next move? Talk to Texas Bay Credit Union’s mortgage experts about our current Mortgage Rate Sale!
Not ready to buy your next home yet? Let’s create a personalized roadmap to help you get there!