Published October 6, 2026 in Market Update

Nearly Half of Killeen Homes for Sale Already Dropped Their Price

By Stephen Harris

Real estate, killeen market update matrix

Sellers in Killeen still talk like the market is firmly in their favor. Price it strong, wait for offers, maybe come down a little if you have to. I hear it every week. So I pulled every listing in my market data through September 26, 2026, and here is what the numbers actually say.

5.3 months of supply means buyers have the upper hand right now

There is a simple rule of thumb in real estate. Under 4 months of supply and sellers are in control. Over 6 months and buyers are. Right now Killeen sits at 5.3 months. That is the middle zone, leaning toward buyers.

Nationally, housing supply in August 2026 sat at 4.9 months, according to the National Association of Realtors. Killeen is above that. More homes are competing for fewer buyers here than the national picture suggests.

There are 722 homes for sale right now. At the pace of 136.3 sales per month lately, that is 5.3 months of homes sitting on the market. Sellers are not in short supply. Buyers are.

Nearly half of those 722 homes, 45.6% of them, have already dropped their price. The typical cut is $10,100. The biggest single cut in the market right now is $200,000, on Mustang Lane. That is not a market where sellers are holding firm.

Did homes that priced higher really give up more often?

The typical first asking price of homes that gave up was $239,000. The typical first asking price of homes that sold was $235,000. A $4,000 gap. That is not a huge number, but the direction matters. The homes that came off the market with no sale started a little higher.

Across the whole market, 939 homes came off with no sale and never came back. That is 3 homes that gave up for every 10 that sold. Another 138 came off and are listed again right now. They are still trying.

The give-up rate was highest under $200,000, where 25.2% of homes that entered the market never sold. The $200,000 to $250,000 range did best at 20.4%.

What this means if you are selling or buying in Killeen right now

If you are selling, the typical home got 97.6% of what it first asked. That gap between what sellers expected and what buyers paid was real. Homes built in the 2020s were the one exception: those sold at 100% of first ask. If your home is newer construction, you have more room to hold. If it is older, the data says price it sharp from day one.

If you are buying, 5.3 months of supply gives you more choices and more room to negotiate than sellers want to admit. The 30-year fixed rate averaged 7.28% as of October 1, 2026, up from 7.03% the week before, according to Freddie Mac's weekly rate survey. That rate is real pressure on what you can afford. Use the supply on your side. Nearly half the homes you tour have already cut their price once. That tells you where the seller's floor probably sits.