The latest May 2026 housing numbers for the Waco MSA show a market that is active, but more balanced than what we have seen over the past few years.

The short version: buyers have more options, sellers still have opportunities, and pricing strategy matters more than ever.

According to the May 2026 Waco MSA Housing Report, the median sales price was $285,000, down just 0.5% compared to May 2025. That is not a dramatic drop. It is better described as a mostly stable pricing environment, but one where sellers do not have quite as much leverage as they did when inventory was tighter.

At the same time, closed sales increased 2.7% year over year, with 341 homes sold in May. That tells us buyers are still active when the home, price, location, and financing make sense.

Waco Market Snapshot for May 2026

Here are the key numbers from the latest report:

  • Median sales price: $285,000, down 0.5% year over year
  • Closed sales: 341, up 2.7% year over year
  • Active listings: 1,435, up 5.8% year over year
  • Months of inventory: 5.6 months, compared to 5.4 months last year
  • Average days on market: 71 days
  • Average days to close: 35 days
  • Total average timeline: approximately 106 days from listing to closing

The biggest takeaway is that inventory continues to improve. With 1,435 active listings, buyers have more room to compare homes, think through options, and negotiate in certain situations.

That does not mean every seller is desperate or that every home is sitting. The better homes are still getting attention, especially when they are clean, well-prepared, and priced correctly.

The $200,000 to $299,999 Range Remains the Most Active

One of the most important details in this month’s report is where the sales activity is happening.

The $200,000 to $299,999 price range accounted for 31.5% of all May sales in the Waco MSA. That continues to be one of the most active segments of the local market.

That price range matters because it often includes first-time buyers, move-up buyers trying to stay within a comfortable monthly payment, and investors looking for properties that still make sense on paper.

As rates remain elevated, affordability continues to shape buyer behavior. Buyers are not just shopping based on price anymore. They are shopping based on payment.

How Waco Compares to the National Market

Nationally, the housing market is showing many of the same themes we are seeing locally: more inventory, cautious buyers, and sales activity that improves when affordability lines up.

The National Association of REALTORS reported that existing-home sales increased slightly in April, while national inventory rose to 4.4 months of supply. That is still below Waco’s 5.6 months of inventory, which means Waco is currently showing more supply relative to demand than the national market.

Mortgage rates remain one of the biggest factors. Freddie Mac reported that the average 30-year fixed mortgage rate was 6.48% as of June 4, 2026. Rates are better than some of the higher points buyers saw last year, but they are still high enough to keep affordability tight.

Redfin’s May 2026 national housing data also showed that U.S. home prices were up 2.0% year over year, while the number of homes sold increased 5.2%. That lines up with what we are seeing locally: the market is not frozen, but buyers are more selective.

What This Means for Buyers

For buyers, the current Waco market offers more opportunity than we have seen in a while.

More inventory means more choices. It can also mean more room to negotiate, especially on homes that have been sitting for a while, need updates, or were priced too aggressively from the start.

But buyers still need to be realistic. The best homes are not sitting forever. If a property is priced well, shows well, and is in a desirable location, it can still move quickly.

The smartest buyers right now are the ones who understand the numbers before they start shopping. That means knowing the monthly payment, understanding closing costs, watching the condition of the home closely, and being ready to move when the right opportunity shows up.

What This Means for Sellers

For sellers, the market is still workable, but it is less forgiving.

This is not the market where you can price high, wait casually, and expect buyers to chase you. Buyers have more choices now, and they are paying close attention to condition, location, and payment.

If your home is priced correctly and presented well, there is still demand. But if it is overpriced, the market will tell you quickly. Longer days on market usually lead to price reductions, weaker negotiating power, and more buyer skepticism.

The goal is not just to list the home. The goal is to position it correctly from day one.

The Big Picture

The Waco housing market is not crashing, and it is not booming. It is becoming more balanced.

That is not a bad thing.

A balanced market gives buyers more options and gives sellers a chance to make a move without the chaos of the ultra-competitive market we saw a few years ago. But it also means strategy matters. Pricing, preparation, timing, and negotiation all carry more weight now.

If you are trying to understand what these numbers mean for your home, your neighborhood, or your next move, we are always happy to help you look at the local data and talk through your options.

Brian & Ashley Bundy
Bundy Realty Group | Bentwood Realty
254-855-2374
bundyrealtygroup.com