San Marcos, TX 78666 Housing Market Update – August 2026

San Marcos, TX Housing Market Update: What August 2026 Is Telling Buyers and Sellers!

The San Marcos housing market continues to give buyers more choices — and August’s numbers reinforce just how important pricing has become for sellers.

This month’s report looks specifically at single-family homes throughout San Marcos, Texas, including both resale homes and new construction. In August, 54 homes sold, the median sales price was $315,000, and homes spent a median 61 days on the market.

But those numbers only tell part of the story. New listings increased sharply compared with last year, while the number of homes going under contract did not keep pace. At the same time, price reductions remain common.

For buyers, that can mean more choices and negotiating opportunities. For sellers, it means competing successfully requires a realistic look at price, condition and the other homes buyers have available.

August 2026 San Marcos Market at a Glance

Here are some of the numbers that stood out in August:

Compared with August 2025, the median sales price was down 8.7%, sales were down 6.9%, average sales price was down 14%, and price per square foot was down 8.1%.

That doesn’t mean every San Marcos homeowner lost 8.7% of their home’s value. Median prices are affected by the mix of homes that happen to sell during a particular month. But when several measures are lower than a year ago at the same time, it does tell us buyers are being more price-conscious.

Prices Rebounded From July — But Remain Below Last Year

There was an interesting shift from July to August.

The median sales price increased from $279,000 in July to $315,000 in August, an increase of about 12.9% in one month. August’s median was also very close to June’s $313,999.

That makes July look more like an unusually low month rather than evidence that prices were continuing straight downward.

The year-over-year comparison, however, tells a different story. The median sales price in August 2025 was $344,900, compared with $315,000 this August.

So the bigger takeaway isn’t simply that prices went “up” or “down.” Month-to-month numbers can move quite a bit depending on which homes sell. Looking at the broader trend, San Marcos buyers continue to have more pricing power than they did in a tighter market.

Inventory Is Giving Buyers More Choices

This may be the most important part of the August report.

There were 103 new single-family listings in August, a 49.3% increase from a year earlier. At the same time, only 46 homes newly went under contract, which was 6.1% lower than the previous year.

That’s a significant difference between new supply coming onto the market and new buyer demand.

By September 16, when this report was generated, San Marcos had 363 active single-family listings and approximately 7.56 months of supply.

In practical terms, buyers have considerably more to choose from than they did during the extremely competitive market of a few years ago.

For sellers, more inventory means your home isn’t just competing against the house down the street. Buyers may be comparing it with multiple resale homes and brand-new homes offering builder incentives.

Not Every Price Range Is Behaving the Same

One thing I always caution buyers and sellers about is treating “the San Marcos market” as though every home is experiencing exactly the same conditions.

The current inventory numbers show otherwise.

As of the report date:

$200,000–$299,999: 5.5 months of supply
$300,000–$399,999: 7.2 months of supply
$400,000–$499,999: 4.9 months of supply
$500,000–$599,999: 8.5 months of supply

The $400,000–$499,999 range was actually tighter than the overall market, while buyers looking between $500,000 and $599,999 had considerably more inventory relative to recent sales.

That’s why pricing a home based only on a citywide median can be misleading. Neighborhood, price range, age, condition and competition all matter.

Price Reductions Are a Big Part of This Market

Here’s one statistic sellers should pay particular attention to.

Of the 363 active listings in the report, 204 had experienced a price reduction — about 59% of the active market. The average price reduction was approximately 8%.

And when a listing did reduce its price, the report shows that those homes went under contract a median 21 days after the price reduction during the most recent month.

That doesn’t mean every seller should automatically reduce their price. What it does show is how quickly the market can respond when a property’s pricing is brought into better alignment with buyer expectations.

This is why I continue to tell sellers that the first price matters.

Starting too high can mean losing the initial burst of attention a new listing receives and then having to chase the market later.

Buyers Are Negotiating Below Asking Price

August homes sold an average of 4.08% below asking price, according to the report’s buyer-demand measure.

That gives buyers something they haven’t always had in San Marcos: room to negotiate.

And negotiation isn’t necessarily limited to purchase price.

Depending on the home and the seller’s circumstances, buyers may also be able to negotiate for things such as seller-paid closing costs, repairs, interest-rate buydowns or other concessions.

That can sometimes make a larger difference to a buyer’s monthly payment or out-of-pocket costs than simply negotiating the price down.

Of course, every property is different. A properly priced home in a desirable location can still attract strong interest, so buyers shouldn’t assume every seller will make substantial concessions.

A Note About New Construction vs. Resale Homes

This particular report includes both new-construction and resale single-family homes, but it does not separate the August statistics between the two.

That distinction matters in San Marcos.

New-home builders may compete with incentives such as financing promotions, closing-cost assistance or upgrades that aren’t reflected simply by looking at the recorded sales price. Resale sellers, on the other hand, may have more flexibility to negotiate on price, repairs or concessions depending on their situation.

So when I’m helping someone buy or sell, I don’t just compare the property with the overall San Marcos median. I look at the specific competition buyers will be considering — including new construction when appropriate.

What August Means for San Marcos Buyers

For buyers, the current market offers something we haven’t always had in recent years: options.

There are more homes available, price reductions are common, and many sellers are negotiating. That allows buyers to compare properties more carefully rather than feeling like they have to make an immediate decision simply because inventory is scarce.

That doesn’t mean waiting indefinitely is always the right strategy. The better homes — particularly those that are priced correctly — can still sell.

The opportunity right now is to evaluate the entire deal, not simply the list price. Purchase price, seller concessions, repairs, financing and an interest-rate buydown can all affect what a home ultimately costs you.

What August Means for San Marcos Sellers

For sellers, August’s numbers aren’t a reason not to sell. They are a reason to be more strategic about how you sell.

With more homes on the market, buyers can afford to be selective. They are comparing condition, upgrades, location, monthly payment and price — and in some cases they’re comparing a resale home directly against a builder offering incentives on a brand-new home.

Professional presentation, strong online marketing and accurate pricing become even more important in this environment.

And with nearly six out of ten active listings in the report having already made a price adjustment, the market is sending a fairly clear message: buyers are paying attention to value.

The Bottom Line

August was an interesting month for San Marcos real estate.

The $315,000 median sales price recovered significantly from July’s $279,000, but remained 8.7% below August of last year. Meanwhile, new listings increased considerably from a year ago while new contracts declined slightly.

Put those numbers together with 7.56 months of current inventory and widespread price reductions, and the San Marcos single-family market is clearly giving buyers more leverage than they had in a low-inventory environment.

For sellers, success is still very possible — but today’s market rewards homes that are priced correctly and positioned well from the beginning.

And for buyers, this may be a market where asking the right questions and negotiating the entire transaction can create opportunities that simply weren’t available a few years ago.

Thinking about buying or selling in San Marcos? San Marcos Homes For Sale

Market statistics are a great starting point, but your neighborhood, price range, property condition and competition can tell a very different story. I’m happy to help you look at what these numbers mean for your specific home or home search.

Sandra Nichols, REALTOR®
Century 21 Randall Morris & Associates
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