August brought a few encouraging signs for the Waco-area housing market.

Median home prices increased from a year ago in both the City of Waco and McLennan County, and closed sales increased in both reports as well—including a fairly significant jump in the City of Waco.

Does that mean the market suddenly took off?

No.

Homes are still taking time to sell, buyers remain selective, and sellers still have to compete for their attention.

But after a fairly slow summer, August gave us a few reasons to be a little more optimistic heading into fall.

August Housing Market at a Glance

City of Waco

  • Median Price: $275,000 — up 3.8%
  • Closed Sales: 128 — up 10.3%
  • Active Listings: 668 — up 3.1%
  • Days on Market: 65
  • Months of Inventory: 5.9

McLennan County

 

  • Median Price: $294,900 — up 2.8%
  • Closed Sales: 252 — up 1.6%
  • Active Listings: 1,287 — down 2.8%
  • Days on Market: 61
  • Months of Inventory: 5.4

Those numbers are encouraging, particularly after some of what we saw earlier this summer.

Buyers Are Still Buying

The number that caught our attention most was the 10.3% year-over-year increase in closed sales in the City of Waco.

That's a pretty meaningful increase for a single month.

At the same time, we don't want to make too much of one month's numbers. Median prices can fluctuate based on the mix of homes that happen to sell, and one stronger month doesn't establish a new trend.

What it does tell us is that buyers haven't disappeared.

Our experience working in the market lately lines up fairly well with the numbers. We've noticed a little more activity—not anything dramatic, but enough that the market feels somewhat more active than it did earlier this summer.

But This Still Isn't a Fast Market

The other side of the story is how long homes are taking to sell.

Homes in Waco spent an average of 65 days on the market before going under contract, followed by another 32 days to close.

McLennan County averaged 61 days on market.

That's a very different environment from several years ago when buyers frequently felt pressure to make decisions almost immediately.

Today, buyers generally have more choices and more time.

And they're using it.

What This Means for Buyers

 

With roughly 5½ to 6 months of inventory locally, buyers have something they didn't have much of a few years ago:

Leverage.

Depending on the property and the seller's circumstances, there may be opportunities to negotiate on price, repairs, closing costs or other concessions.

That doesn't mean every house is a bargain. Well-priced homes in good condition can still attract attention quickly.

But overall, buyers who can make today's monthly payment work are shopping in a much more favorable negotiating environment than they were a few years ago.

Related Reading: Should You Wait to Buy a Home? Here Are the Costs Many Buyers Overlook (July 21, 2026)

What This Means for Sellers

The increase in August sales is good news for sellers.

But it doesn't really change our advice:

Price and presentation matter.

Today's buyers generally have too many alternatives to overlook an overpriced home simply because they like it.

Sellers who start too high can easily spend weeks on the market before eventually making the price adjustment they probably should have made in the beginning.

The goal isn't to underprice your home. It's to understand what buyers are actually willing to pay today, rather than basing your expectations on what a similar home might have commanded several years ago.

Related Reading: How to Price Your Home in Today's Market (February 17, 2026) 

Mortgage Rates Remain Part of the Problem

One thing that hasn't improved much is affordability.

The latest Freddie Mac survey put the average 30-year fixed mortgage rate at 6.76%, compared with 6.71% the previous week and 6.35% a year earlier.

Even when home prices are reasonable, today's rates can make the monthly payment considerably higher than buyers were accustomed to several years ago.

Our advice remains the same: don't make a buying or selling decision based solely on the hope that mortgage rates are about to drop dramatically.

If rates eventually come down, great.

But a purchase should make sense using today's numbers first.

Related Reading: The Fed Just Met. What Does That Mean for Mortgage Rates? (June 18, 2026)

A Local Perspective

We wouldn't call August a major shift in the Waco housing market.

But we do think it was a better month.

Prices held up, sales activity improved, and we've personally felt a little more activity in the market recently.

Whether that turns into a stronger fall remains to be seen, but we're a little more optimistic than we were a month ago.

And remember that broad statistics only tell part of the story.

The market for a $225,000 house in Waco can look very different from the market for a $600,000 home in Woodway or a property in Midway ISD.

If you're considering buying or selling in the Waco area and want to know what's happening in your particular price range or neighborhood, we'd be happy to take a closer look with you.

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Should You Wait to Buy a Home? Here Are the Costs Many Buyers Overlook (July 21, 2026) 

How to Price Your Home in Today's Market (February 17, 2026)
 

 

Should You Buy Your Next Home Before Selling Your Current One? (July 7, 2026)