October was an interesting month in the Waco-area housing market.
From our own experience, we saw a little more activity on both the buying and selling sides, particularly with homes that were well-positioned for today's market.
At the same time, the year-over-year numbers tell us not to get carried away.
Closed sales were down from last October in both the City of Waco and McLennan County, even as median prices edged higher.
So we wouldn't call October a major change in the market. But we would say it gave us a few encouraging signs.
October 2026 Housing Market at a Glance
City of Waco
- Median Price: $261,250 - up 2.5%
- Closed Sales: 89 - down 25.8%
- Active Listings: 702 - up 5.6%
- Days on Market: 86
- Months of Inventory: 6.3
McLennan County
- Median Price: $278,900 - up 1.4%
- Closed Sales: 192 - down 19%
- Active Listings: 1,339 - up 1.7%
- Days on Market: 73
- Months of Inventory: 5.8
The Numbers and the Market Can Tell Slightly Different Stories
At first glance, the decline in closed sales looks pretty negative.
And compared with October of last year, fewer homes did close.
But that doesn't mean there was no activity.
Our firsthand experience in October felt somewhat better than the headline sales numbers might suggest. We saw more movement with buyers and sellers, particularly when the property, price and circumstances lined up well.
That's an important distinction.
Housing statistics are useful, but they are always backward-looking. A closed sale in October may reflect a contract that was negotiated several weeks earlier. What we're experiencing day to day can sometimes begin changing before it fully shows up in the closed-sales data.
Buyers Still Have Choices
One thing that has not changed much is buyer selectivity.
With roughly six months of inventory locally, buyers usually have alternatives.
They can compare homes. They can take more time. And depending on the property and seller's situation, they may have room to negotiate on things like price, repairs, closing costs or other terms.
That is a very different environment from the market a few years ago, when buyers often felt pressure to act immediately.
Related Reading: Should You Wait to Buy a Home? Here Are the Costs Many Buyers Overlook
But a Home Taking Longer to Sell Isn't Always Just About Price
Pricing still matters tremendously.
But we also don't think it's fair to assume that every home that sits on the market is simply overpriced.
Sometimes price is the issue.
Other times it may be:
- Condition
- Location
- Floor plan
- Needed updating
- Competition from similar listings
- A smaller pool of buyers for that particular property
- Or simply timing
That's why broad advice like "just lower the price" can be too simplistic.
The better question is: Why isn't this particular property getting enough attention from the buyers who should be considering it?
Price may absolutely be part of the answer. But it isn't always the entire answer.
What October Means for Sellers
For sellers, the market still requires a thoughtful strategy from the beginning.
That means looking realistically at:
- Recent comparable sales
- Current competing listings
- Condition
- Presentation
- Buyer demand in the specific price range
- How quickly similar homes are actually going under contract
The encouraging part is that buyers are still buying.
But they are usually much less willing to overlook a property's weaknesses than they were when inventory was extremely limited.
Sellers don't necessarily need to be the cheapest house on the market. They do need to give buyers a compelling reason to choose their home over the alternatives.
Related Reading: How to Price Your Home in Waco in Today's Market
What October Means for Buyers
For buyers, the current market can offer something we haven't always had in recent years: time and negotiating room.
That doesn't mean every seller is desperate or every property is a bargain.
Good homes that are priced appropriately can still attract strong interest.
But buyers generally have more opportunity to investigate a property carefully, compare alternatives and negotiate terms without feeling like every decision has to be made immediately.
For buyers who can make today's monthly payment work, that can be a meaningful advantage.
Related Reading: What Is the Texas Option Period and Why Does It Matter?
A Local Perspective
The biggest takeaway from October is that the Waco-area market is still very property-specific.
A $225,000 home in Waco can be experiencing a completely different market from a $600,000 home in Woodway, a house in Midway ISD or a rural property outside town.
That's why we don't think describing the market as simply "good" or "bad" is particularly helpful.
October gave us a few reasons to feel more encouraged about activity.
At the same time, buyers remain selective, homes are taking longer to sell than they did several years ago, and sellers still need to compete for attention.
The best decisions come from understanding what is happening in the specific segment of the market that matters to you.
If you're considering buying or selling in Waco, Woodway, Hewitt, Robinson, Lorena or elsewhere in McLennan County, we're always happy to help you look at what the numbers mean for your particular situation.
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