Lewisville TX Real Estate Market Update: February 2026

Lewisville TX Real Estate Market Update: February 2026

The Lewisville housing market is undergoing a significant transition in early 2026, moving toward more balanced conditions after years of intense seller favorability. With median home prices declining 4.7% year-over-year to $385,000 and inventory rising 4.6%, both buyers and sellers need strategic approaches to navigate these changing dynamics.

Key Market Indicators Show Rebalancing

• Median Home Price: $385,000 (down 4.7% YoY)
• Price Per Square Foot: $207 (down 4.2% YoY)
• Closed Sales: 51 units (down 22% YoY)
• Active Listings: 4.6% increase YoY
• Days on Market: 58 days (down from 61 days)

This data suggests we're seeing the first sustained inventory relief since the pandemic-era boom, creating more options for buyers while requiring adjusted expectations from sellers.

Neighborhood Spotlight: Lewisville Valley Outperforms

The Lewisville Valley neighborhood demonstrates surprising resilience with:

• Median Price: $350,000 (down 3.3% YoY)
• Sales Volume: 25 homes sold in December 2025 (up 108% YoY)
• Price Per Sq Ft: $195 (down 12.6% YoY)

This entry-level market segment continues attracting first-time buyers and younger families, particularly with its quality school infrastructure like Degan Elementary.

Affordability Challenges Persist

Current DFW housing economics reveal:

• Typical Mortgage Payment: $1,796/month
• Required Income: $86,208/year
• Median Household Income: ~$87,000

While technically affordable at median income levels, individual earners ($50,000-$66,000) remain largely priced out, constraining the buyer pool.

Migration Patterns Reshape Demand

Notable relocation trends:

• Inbound Interest: Los Angeles, Seattle, Washington residents
• Outbound Movement: Lewisville to Phoenix, Austin, Houston

These patterns suggest lifestyle arbitrage as coastal buyers seek Texas affordability while locals pursue opportunities elsewhere.

2026 Market Forecast

Experts anticipate:

• Price Appreciation: 2-4%
• Inventory Growth: 5-10%

This gradual normalization suggests improved buyer selection without risking oversupply conditions.

Frequently Asked Questions

Is now a good time to buy in Lewisville?

With prices down 4.7% and more inventory available, buyers have improved negotiating power compared to recent years. However, interest rates remain a key consideration.

How long does it take to sell a home in Lewisville?

The average days on market is currently 58 days, down slightly from 61 days last year. Well-priced homes in desirable neighborhoods can sell faster.

Which Lewisville neighborhoods are most competitive?

Lewisville Valley shows remarkable activity with sales volume up 108%, making it highly competitive for entry-level buyers.

What income do I need to afford a Lewisville home?

The typical mortgage payment requires about $86,208 annual income, aligning closely with the area's median household income.

Are prices expected to drop further in Lewisville?

While prices have declined, the 2026 forecast suggests modest 2-4% appreciation, indicating the current dip may represent a buying opportunity.

Conclusion

The Lewisville real estate market in February 2026 presents a classic rebalancing scenario - prices moderating from peak levels, inventory gradually improving, and transaction pace stabilizing. For buyers, this means more selection and slightly better negotiating power. For sellers, proper pricing and marketing become absolutely critical in an environment where homes no longer sell themselves.

Whether you're buying or selling in Lewisville, having an expert real estate agent who understands these nuanced market conditions can make all the difference. Contact Melissa today for personalized guidance tailored to your specific real estate goals.

Sources & References

• Redfin Lewisville Market Data
• Crosstimbers Gazette Market Report
• Redfin Lewisville Valley Data
• Houzeo Lewisville Market Analysis
• Zillow Lewisville Home Values