Palestine Housing Market Update: Prices Down Year Over Year, Inventory Steady
Palestine, TX – March 13, 2026 – Home prices are down year over year, days on market are longer, and buyers are seeing more options across price points.
Palestine Housing Market Update
The local housing market has slowed compared to last year, giving buyers more leverage as inventory remains active across multiple price points.
Top takeaways
- Median home sale price was $160,000 in January 2026, down 25.0% year over year.
- Homes averaged 92 days on market, up from 71 days a year ago.
- 9 homes sold in January, compared to 16 last year.
- About 260 homes are currently listed for sale citywide.
Market snapshot
According to Redfin, January 2026 data shows a median sale price of $160,000, with the median price per square foot at $84. Sales activity has cooled, and properties are taking longer to sell, signaling a less competitive environment than in early 2025.
Realtor.com’s market overview reflects a higher median listing price than closed-sale data, highlighting a gap between seller expectations and recent sales. This spread often creates room for negotiation, particularly for homes that have been on the market for several weeks.
What’s for sale
Zillow shows roughly 260 active listings across Palestine, ranging from homes under $120,000 needing updates to properties above $1.1M on acreage. Mid-range options between $200,000 and $400,000 make up a significant share of current inventory, including several 3- to 5-bedroom homes in established neighborhoods and rural tracts just outside town.
New construction is also present in the mix, with select recently built homes priced near the low-to-mid $200,000s.
Rental check
For renters, average monthly rent is about $1,021 as of February 2026. One-bedroom units average around $1,021, while two-bedroom units average about $1,195, keeping local rents below national averages.
With softer pricing and longer market times, buyers may find more negotiating room this spring. Sellers, meanwhile, may need to price strategically to stand out.
Sources
Are you seeing more price reductions or steady demand in your neighborhood?