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Texas housing market strengthens in first half of 2026
Texas housing market activity strengthened through the first half of 2026, with closed sales outpacing last year’s levels. This suggests that underlying housing demand remains resilient despite ongoing economic headwinds and persistent affordability constraints. Sales gains have been consistent statewide, suggesting that buyers are adapting to current mortgage rates while benefiting from more stable inventory conditions and greater choice.
Pricing trends also point to a gradually improving market environment in Texas. While home prices remain below year-ago levels, the pace of decline has continued to ease.
As the peak home buying season comes to a close, continued improvement in inflation readings should help support market stability by reducing the likelihood of a policy rate increase.
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California scores most expensive mid-year home sale
The most expensive U.S. home sale of July came from a Bel Air estate in California, known as Casa Encantada. The luxury home sold for $130 million, making it the second-most expensive home sale of 2026 so far.
The other three top sales also came from Southern California: a beachfront Malibu mansion, an architectural gem in Orange County and a Beverly Hills compound. The most expensive mid-summer sales also include two townhouses in Manhattan, New York, and three oceanfront Florida estates.
All 10 of July’s most expensive homes sold for at least $40 million.
Luxury and custom homes continue to provide light in the midst of a struggling housing market.
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Prime land prices rise, outlying land readjusts
Well-located land is in high demand, as seen in research from John Burns Research and Consulting (JBREC). The company’s 2Q26 Residential Land Survey of the top land brokers nationwide reported the following: Demand remains lower than it was a few years ago. In 2Q24, 76% of brokers rated land demand as Hot or On Fire, but by 2Q26, that number decreased to 33%. However, finished lot prices continue to rise in high-quality A-B locations, up +5% year over year (YOY), while prices fell -2% YOY in farther-out C-D locations.
Higher-quality land is in higher demand, but there are still factors builders and developers should keep an eye on. Developers are encouraged to look out for easing growth. Meanwhile, builders may be able to push for better terms in negotiations with developers in some markets, particularly in oversupplied C-D areas.
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Mortgage rates hold steady
Results from Freddie Mac’s Primary Mortgage Market Survey revealed that the 30-year fixed-rate mortgage (FRM) averaged 6.66% on Aug. 27, 2026. This is the second time in August that mortgage rates have averaged 6.66%. Mortgage rates remain relatively unchanged throughout the month, holding steady.
“Mortgage rates changed little this week, averaging 6.66%,” said Sam Khater, Freddie Mac’s Chief Economist. “The economy remains resilient, demonstrated by steady consumer spending and rising household incomes. More homes coming on the market and slower price growth in many areas are giving buyers better options and helping create a more balanced housing market.”
The current FRM is slightly up from last week’s average of 6.65%. A year ago at this time, the 30-year FRM averaged 6.56%. The 15-year FRM averaged 5.98%, up from last week when it averaged 5.95%. A year ago at this time, the 15-year FRM averaged 5.69%.
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Pace of new home sales softens
According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, newly built single-family home sales declined 10.5% in July to a seasonally adjusted rate of 607,000, following an upward estimate of new home sales in June. New home sales were 6.3% lower than a year earlier, according to July data.
A survey from the National Association of Home Builders shows that a majority of builders continue to offer incentives, including mortgage rate buy-downs, to accelerate the pace of new home sales. There is still hope in the industry as builders continue to outperform the broader market.
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Goodbye cool interiors, hello earthy tones
Throughout 2026, we have seen interior design move away from cool interiors and clean lines and instead towards spaces that feel warmer and more personal. There has been a growing emphasis on natural materials, earthy tones and pieces that bring individuality into the home.
Warm, earthy tones continue to influence interiors in 2026, bringing depth and comfort into contemporary spaces. Mocha, olive, terracotta and chocolate are replacing neutral palettes, creating rooms that feel grounded and inviting. Rather than dominating a space, these colors work beautifully when layered through artwork, natural materials and subtle accents.
The result is an interior that feels warm and sophisticated without losing its contemporary edge.
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How California kitchen designs are evolving
In Southern California homes, kitchen designs are moving away from cold, showroom-style spaces toward warmer, more livable rooms. While indoor-outdoor flow remains the defining feature, warm wood and natural materials are becoming just as important in kitchen designs.
Large glass pocket doors connect the kitchen directly to the patio, allowing entertainment to flow naturally between both spaces. Homeowners continue to prioritize a seamless blend between indoor and outdoor living, paving the way for open floor plans in kitchens to continue in popularity.
Shifting towards color palettes, white kitchens are evolving rather than disappearing entirely. Homeowners are pairing lighter upper cabinets with a darker, contrasting island or lower cabinetry for a two-tone look. As a result, this layered approach gives a modern kitchen more visual interest than an all-one-color design, while still keeping the space feeling bright.
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Tri Pointe Homes unveils LivingWell in Utah
Tri Pointe Homes announced the completion of its LivingWell concept home and the start of sales at Pavilions at Holladay Hills, an exclusive collection of six one-of-a-kind luxury estate residences in Holladay, Utah. The completed concept home gives prospective buyers their first opportunity to experience LivingWell, Tri Pointe’s next-generation approach to whole-home wellness.

Photography by Kara Mercer “LivingWell represents an important evolution in how we think about designing homes,” said Tom Mitchell, President and Chief Operating Officer of Tri Pointe Homes. “Buyers increasingly want homes that contribute meaningfully to the lives they hope to lead. Luxury is no longer measured by scale or finishes alone, but by whether a home can adapt, restore and support the people living there. Pavilions at Holladay Hills is Tri Pointe’s response, offering residences that are highly personalized, flexible over time and holistically focused on human wellbeing.”
The LivingWell concept home integrates wellness throughout the entire home, rather than confining it to individual rooms or amenities. Organized around a private interior courtyard, the three-story, 7,774-square-foot contemporary English manor includes six bedrooms, nine bathrooms, a four-bay garage and a separate carriage home for guests or multigenerational living. Its orientation, enhanced glazing and circulation draw natural light into the interior while strengthening indoor-outdoor living.

Photography by Ikon Media “Good design should support our routines while making space for the ways we evolve,” said Bobby Berk, LivingWell’s designer, Emmy-winning TV host and author. “LivingWell brings that balance of comfort and freedom into wellness-oriented spaces that are deeply connected to the people who live there. This project is exciting because it doesn’t view wellness as just another trend. LivingWell is a platform for imagining where residential design can go next.”

Photography by Kara Mercer The project builds upon Tri Pointe Homes’ LivingSmart program, the company’s longterm commitment to sustainability, energy efficiency and responsible building practices. LivingWell extends to how a home feels by incorporating light, flow, comfort, connection and adaptability into the routines of daily life. The approach is anticipated to be expressed across all six residences at Pavilions at Holladay Hills.
Please visit tripointehomes.com for more information.
Backyard and primary bathroom photos courtesy of Ikon Media.
Kitchen and dining room photos courtesy of Kara Mercer.
Photos courtesy of Tri Pointe Homes.
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Builder confidence edges higher in August
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Aug. 17, 2026, builder confidence in the market for newly built single-family homes inched up one point to 35 in August.
“While builder sentiment edged higher in August, builders continue to contend with high construction costs and broader economic uncertainty,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio. “However, the Midwest remains a bright spot for the home building industry, with new home sales up in that region more than 2% so far in 2026.”
“Custom home builders continue to report stronger market conditions than spec builders, reflecting better conditions at the higher end of the market,” said NAHB Chief Economist Robert Dietz. “Smaller, less dense markets are also outperforming larger metropolitan areas, and smaller builders report relatively stronger conditions than larger builders.”
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July building permits 5% above June estimate
The United States Census Bureau released the Monthly New Residential Construction for July 2026. Privately owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,443,000, 5% above the revised June rate of 1,374,000 and 3.1% above the July 2025 rate of 1,400,000.
Privately owned housing starts were at a seasonally adjusted annual rate of 1,239,000, 12.4% below the revised June estimate of 1,415,000 and 13.5% below the July 2025 rate of 1,432,000. Single-family housing starts in July were at a rate of 808,000.
Privately owned housing completions were at a seasonally adjusted annual rate of 1,212,000, 9.1 percent% below the revised June estimate of 1,333,000 and 16.8% below the July 2025 rate of 1,456,000.
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How California kitchen designs are evolving
In Southern California homes, kitchen designs are moving away from cold, showroom-style spaces toward warmer, more livable rooms. While indoor-outdoor flow remains the defining feature, warm wood and natural materials are becoming just as important in kitchen designs.
Large glass pocket doors connect the kitchen directly to the patio, allowing entertainment to flow naturally between both spaces. Homeowners continue to prioritize a seamless blend between indoor and outdoor living, paving the way for open floor plans in kitchens to continue in popularity.
Shifting towards color palettes, white kitchens are evolving rather than disappearing entirely. Homeowners are pairing lighter upper cabinets with a darker, contrasting island or lower cabinetry for a two-tone look. As a result, this layered approach gives a modern kitchen more visual interest than an all-one-color design, while still keeping the space feeling bright.
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Mortgage rates average 6.69%
As of Aug. 6, 2026, mortgage rates averaged 6.69%, according to Freddie Mac’s Primary Mortgage Survey (PMS). These results are up from last week’s average of 6.66%. A year ago at this time, the 30-year FRM averaged 6.63%.
“The 30-year fixed-rate mortgage averaged 6.69% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “While mortgage rates continue to influence affordability, the housing market is showing signs of adjustment, with listing prices modestly below year-ago levels and for-sale inventory improving from the limited supply seen in recent years.”
The 15-year FRM averaged 6.01%, down from the previous week’s 6.04%. A year ago at this time, the 15-year FRM averaged 5.75%.
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Highland Homes purchases 100 acres for self development
Highland Homes, one of Texas’ most prominent builders, launches its self-development arm with the purchase of 100 acres in Melina. The builder estimates that the land will include 400 homesites ranging from 45 to 60 feet wide.
Highland, overseeing the development, believes the lots will be ready by the end of the year, with home sales to begin in spring 2027.
Highland Homes currently builds in 11 Austin-area communities and more than 100 in Texas. With these new avenues of self-development, the builder estimates delivering 600 homes in the near future to the Georgetown area.
“This is a natural next step for Highland Homes in Central Texas,” said Jeff Stinson, Senior Vice President of Land for Highland Homes. “Developing these projects allows us to time supply to properly meet buyer demand. We’re excited to work with such esteemed partners to bring these communities to life.”
Photo Courtesy of Highland Homes
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Tri Pointe Homes unveils LivingWell in Utah
Tri Pointe Homes announced the completion of its LivingWell concept home and the start of sales at Pavilions at Holladay Hills, an exclusive collection of six one-of-a-kind luxury estate residences in Holladay, Utah. The completed concept home gives prospective buyers their first opportunity to experience LivingWell, Tri Pointe’s next-generation approach to whole-home wellness.

Photography by Kara Mercer “LivingWell represents an important evolution in how we think about designing homes,” said Tom Mitchell, President and Chief Operating Officer of Tri Pointe Homes. “Buyers increasingly want homes that contribute meaningfully to the lives they hope to lead. Luxury is no longer measured by scale or finishes alone, but by whether a home can adapt, restore and support the people living there. Pavilions at Holladay Hills is Tri Pointe’s response, offering residences that are highly personalized, flexible over time and holistically focused on human wellbeing.”
The LivingWell concept home integrates wellness throughout the entire home, rather than confining it to individual rooms or amenities. Organized around a private interior courtyard, the three-story, 7,774-square-foot contemporary English manor includes six bedrooms, nine bathrooms, a four-bay garage and a separate carriage home for guests or multigenerational living. Its orientation, enhanced glazing and circulation draw natural light into the interior while strengthening indoor-outdoor living.

Photography by Ikon Media “Good design should support our routines while making space for the ways we evolve,” said Bobby Berk, LivingWell’s designer, Emmy-winning TV host and author. “LivingWell brings that balance of comfort and freedom into wellness-oriented spaces that are deeply connected to the people who live there. This project is exciting because it doesn’t view wellness as just another trend. LivingWell is a platform for imagining where residential design can go next.”

Photography by Kara Mercer The project builds upon Tri Pointe Homes’ LivingSmart program, the company’s longterm commitment to sustainability, energy efficiency and responsible building practices. LivingWell extends to how a home feels by incorporating light, flow, comfort, connection and adaptability into the routines of daily life. The approach is anticipated to be expressed across all six residences at Pavilions at Holladay Hills.
Please visit tripointehomes.com for more information.
Backyard and primary bathroom photos courtesy of Ikon Media.
Kitchen and dining room photos courtesy of Kara Mercer.
Photos courtesy of Tri Pointe Homes.
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