Housing prices continue to rise in the McAllen metro, but begin to cool off in Brownsville

There’s a brand-new single-family home in Brownsville for sale that’s now $14,500 cheaper than when it was listed about six months ago, despite being built in 2025.

The new asking price for a three-bedroom, two-bath home, spanning 1,590 square feet on a 4,792-square-foot lot, is $274,500. The home is located in a new subdivision within a 30-minute drive of SpaceX. 

A similarly sized home under construction in a nearby subdivision was listed for $266,700, with completion expected by February 2026. The developer listed the home for sale about six months earlier, offering buyers design choices for the interior. 

These homes are examples of how home prices in the Brownsville-Harlingen metro area have begun to cool, compared to last year, according to Realtor MLS data compiled by the Texas Real Estate Center at Texas A&M. 

The median sale price for a single-family home in the Brownsville metro was $270,000 in February 2025, but it has since dropped to $250,000 just one year later. That’s still 50% higher than February 2020. 

There were 1,686 active listings in the Brownsville metro, down slightly from last year to 1,638, which is about seven months of inventory, meaning it’s a buyer’s market. 

There were 201 home sales in the Brownsville metro in February, up from 200 last year. 

In the McAllen-Edinburg-Mission metro area, the median sale price of a single-family home continued to climb in February to $242,000 — an increase of 1.2% over the year. 

That figure is still nearly 47% higher than in February 2020. 

There are still price cuts on the market. A three-bedroom, 2.5-bath single-family home spanning 1,610 square feet on a 5,149-square-foot lot is listed at $280,000 in Edinburg, $4,500 cheaper than in August 2025. 

In Harlingen, a brand-new three-bedroom, 2.5-bath single-family home measuring 1,591 square feet on a 6,216-square-foot lot was listed at $289,000 in January 2026. By March, the home just south of Business 83, west of Valle Vista Mall, was listed for $5,000 less. 

In McAllen, near Auburn Avenue and Ware Road, there’s a new three-bedroom, 3.5-bath single-family home spanning 1,685 square feet on a 9,174-square-foot lot, built in 2025, that is $31,000 cheaper than when it was listed in December 2025 at $330,000. 

There were 311 home sales in the McAllen metro, up from 273 last year during the same time frame. 

There were 3,272 active listings in the McAllen metro area, up from 2,732 last year, which is more than nine months of inventory — a buyer’s market. 

This month, the Federal Reserve Board voted to keep the federal funds rate unchanged. The key economic indicator is the interest rate banks charge each other to lend money overnight. This is set by the Federal Reserve Board and often affects interest rates on consumer and business lending products, from home mortgage rates to commercial loans. 

In February, the average 30-year fixed home mortgage rate dropped below 6% for the first time since 2022, according to the Federal Home Loan Mortgage Corp.