Texas Real Estate Market Trends 2026
Last Updated:
February 2026 Market Update
Texas Mortgage Rates Drop to Lowest Level Since 2022
The market currently has nearly 600,000 more home sellers than buyers, creating one of the widest supply gaps in recent years and giving buyers significantly more negotiating leverage on price, concessions, and terms. The decline in mortgage rates is largely being driven by falling U.S. Treasury yields, as investors move capital into the bond market amid economic uncertainty related to global tariffs and volatility surrounding artificial intelligence sector expectations.
Lower yields typically translate into lower borrowing costs, which is beginning to improve purchasing power for buyers who have been sidelined by higher interest rates over the past two years.
Watch the Latest Market Update!
Our most recent webinar was an informative session led by Catalyst Funding’s industry experts: CEO, Wade Comeaux and Director of Lending Jeff Johnson with our special guest, Steve Davis, CEO of Total Wealth Academy.
This article gives some of the best segments of the webinar – allowing you to get an overview of topics that interest you most! Watch the entire presentation here:
Flip & Fixers Expecting Gains in 2026
Investor confidence in the fix and flip market strengthened toward the end of 2025 despite a slowdown in transaction volume. While fix and flip sales declined 9.2% year over year, investor sentiment improved notably, signaling expectations of a more active market ahead. A proprietary nationwide survey of approximately 450 fix and flip investors revealed that many plan to increase property acquisitions in 2026 and anticipate favorable selling conditions.
Supporting this outlook, the Burns + Kiavi Fix and Flip Market Index rose sharply in the fourth quarter of 2025, climbing from 54 to 62, which represents the largest quarterly increase in three years. The jump in the index suggests investors are becoming more optimistic about margins, deal flow, and exit opportunities as market conditions stabilize. Planning to start a fix and flip in 2026? Learn more about hard money to get the funds you need fast!
Texas County Lands on Top 10 Most Affordable List
A recent 2026 rental affordability analysis by ATTOM compared median single family home prices to the percentage of local wages required to purchase a home, highlighting the growing gap between ownership costs and rental affordability. The study found that in more than two thirds of the counties analyzed, home prices increased faster than rents during 2025, making homeownership more difficult to achieve for many households.
Overall, homeownership expenses exceeded one third of the typical resident’s wages in 65.7% of the 364 counties studied, underscoring the financial pressure facing potential buyers. However, some markets remain relatively affordable. Jefferson County, Texas ranked #7 on the list of the Top 10 most affordable counties, with a median single family home price of $174,250 and an estimated 17.4% of average local wages required to purchase a home, well below the national affordability threshold. Looking for deals in Jefferson County, aka Beaumont? We can help! Click here to find the areas we serve in and reach out today!
“For savvy investors, understanding the implications of cash-out refinances and how they can help homeowners leverage their equity to make additional purchases is essential.”
Catalyst Funding can provide the perfect financial solution for your investment needs.
Whether you’re investing in Houston, Dallas, San Antonio, Austin, or any other area in Texas, we’ve got you covered!
Why Choose Catalyst Funding as Your Hard Money Lender?
Here’s why Texas real estate investors trust Catalyst Funding for the hard money loan needs:
- Experienced Team: Our team members are seasoned investors who understand the challenges and opportunities in real estate. We’ve facilitated thousands of successful transactions across Texas.
- Dedicated Loan Officers: You’ll have a single point of contact to guide you through the process, making your experience efficient and stress-free.
- Quick Turnaround: Time is money in real estate. Our fast turn times ensure you can act quickly to secure deals and complete projects.
- Technology-Driven Solutions: Manage your account from anywhere with our secure borrower portal, designed for mobile access and real-time updates.
- Proven Success: Our 5-star ratings on Google and social media platforms reflect the high level of service and results we provide to our clients.
Get Started with Catalyst Funding - Today!
Ready to unlock new opportunities with Texas real estate investments? Catalyst Funding offers hard money loans and financing solutions tailored to your needs. Whether you’re investing in Houston, Dallas, San Antonio, Austin, or elsewhere in Texas, we’re here to help you achieve your goals.
Reach out to Catalyst Funding and start investing with confidence:
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Article References
Mortgage Rates Drop to Lowest Level Since 2022 (Redfin)
Fix-and-flip investor sentiment climbs even as 2025 activity declines (Housingwire)
Top 10 Most Affordable U.S. Counties for Owning a Home in 2026 (ATTOM
You Got the Hard Money Loan. Then a Second Appraisal Came In Lower. Now What?
Most fix-to-rent deals in Texas involve two appraisals — and they don’t produce the same number. The hard money appraisal is forward-looking. The refinance appraisal is conservative, regulated, and often lower. If you only underwrote to the first number, the second one can derail your exit entirely. Here’s why the gap exists and what Catalyst’s Bridge Appraisal process does to close it.
How Wholesalers in Texas Can Build a Reliable Investor-Buyer Pipeline (And Why Fast Funding Is the Key)
Texas has always been a strong wholesale market. High transaction volume, a fragmented ownership base, and a large pool of distressed and off-market properties make it one of the most active assignment markets in the country.
Texas Real Estate Market 2026
Stay ahead of the Texas real estate market with the latest information on the Texas market in 2026! We break down the newest data on mortgage rates, investor activity, housing supply, affordability trends, and key developments across major Texas metros so investors, buyers, and industry professionals can make smarter decisions in a rapidly shifting market.
San Antonio Real Estate Market 2025
San Antonio’s real estate market in 2025 presents a strong investment opportunity, driven by steady population growth, affordability, and economic stability. With increasing demand for both rental properties and homes, investors have numerous profitable prospects to consider. Early reports from industry experts reveal a rise in home sales activity, even as prices temporarily decline, offering potential bargains for savvy buyers. This active market, combined with a favorable balance of supply and demand, suggests long-term growth potential. Stay updated with monthly insights on San Antonio’s evolving real estate market here!