Waco Market Updates - February Stats

We ran First Look Statistics for the month of February 2026 for the Waco Metro, and the market continues to show a mix of stability and transition. Closed sales declined compared to last year, but contract activity held steady and prices continued to edge upward. Meanwhile, mortgage rates have improved slightly from late 2025 levels and consumer sentiment has rebounded meaningfully since the fall. Overall, the early signals suggest a relatively stable start to the spring market.

Key Highlights:

• Total sales declined 12.7% year over year with 185 homes closing in February compared to 212 last year.

• Under contract activity increased slightly by 1.5% YOY, suggesting demand remains stable heading into spring.

• New listings decreased modestly by 2.2%, while withdrawn and expired listings dropped significantly by 33.7%.

• Average and median sold prices increased 1.3% and 2.1% respectively, continuing the slow upward price trend.

• Average days on market improved slightly to 96 days, indicating homes are selling marginally faster than last year.

Average and Median Sold Price

Prices in the Waco Metro remained relatively stable with modest upward movement. The average sold price increased to $322,472, up 1.3% from last year, while the median sold price rose to $280,000, a 2.1% increase year over year.

Looking at the 13 month trend, pricing has largely moved sideways with typical seasonal fluctuations. The peaks during the summer months and softer winter pricing follow the normal seasonal pattern that we expect in most housing markets. Overall, the trend line suggests that prices in Waco have stabilized after the volatility seen in prior years.

Sold Units

Closed sales declined compared to last February, which is not entirely unexpected given mortgage rates remain above historic norms and affordability remains a challenge for some buyers.

However, the longer term trend still reflects normal seasonality. Sales activity typically accelerates in the spring and early summer months before tapering in the fall and winter. February's numbers remain consistent with that seasonal pattern and do not necessarily indicate weakening demand on their own.

Pending Units and New Listings

Pending contracts are often a better leading indicator of future activity than closed sales, and February showed encouraging signs. Pending units increased slightly year over year and remain ahead of the pace we saw earlier in 2024.

At the same time, new listings declined modestly. The combination of stable demand and slightly constrained supply tends to support pricing stability, which is exactly what we are seeing in the Waco market right now.

Broader Economic IndicatorsMortgage rates have improved modestly since late 2025. Rates briefly touched roughly 6.36% in December before declining closer to the 6.1% range in early March. While still elevated compared to the ultra low rates of 2020 and 2021, this improvement helps affordability and typically supports buyer demand.

Consumer sentiment has also improved meaningfully since the fall and now sits in the mid 50s. While not historically high, the improvement signals that households are gradually becoming more optimistic about economic conditions, which often translates into increased housing activity as the year progresses.

If you're a buyer

The market is currently offering a balanced environment for buyers. Competition is not as intense as it was during the pandemic boom, but demand remains healthy. Mortgage rates have improved slightly and inventory levels remain manageable, giving buyers opportunities to negotiate while still benefiting from stable pricing.

If rates move lower later in the year, competition could increase. For buyers planning to purchase in 2026, acting earlier in the year can often mean less competition and better negotiating leverage.

If you're a seller

Pricing strategy continues to be the most important factor for sellers. The data shows that homes are still selling and prices are slowly trending upward, but buyers remain sensitive to price and value.

Homes that are priced appropriately and marketed well are still moving in a reasonable timeframe. With the spring season approaching, we typically expect demand to increase over the next several months.

Always remember that real estate is hyperlocal and hypersituational. If we can help you with your home/property or if you'd like to strategize your situation, please reach out.