Killeen, TX Housing Market Report

The Killeen, TX housing market is currently experiencing a period of stabilization and correction, shifting toward conditions that increasingly favor buyers. As of December 2025, the median home value stands at $215,837, reflecting a year-over-year decline of 1.97%. While inventory has tightened slightly by 3.11% compared to last year, the average time a property spends on the market has climbed to 95 days. This extended duration suggests that buyers are exercising more caution and taking advantage of increased leverage during negotiations, as evidenced by a sale-to-list ratio of 0.99, indicating that most homes are selling just below their original asking prices.

Price trends over the last six months reveal a consistent, albeit gradual, downward trajectory. Starting at $217,074 in July 2025, values have dipped every month to reach the current December level. This cooling phase is likely driven by a combination of broader macroeconomic factors and a localized rebalancing after years of rapid appreciation. Despite the dip in purchase prices, the rental market remains resilient with a median rent of $1,250, representing a modest 0.59% annual increase. This divergence suggests that while the sales market is cooling, demand for housing in the Killeen-Temple metro area remains fundamentally supported by the local military presence and workforce.

Looking ahead, the Killeen market offers a strategic window for both first-time buyers and investors. For buyers, the combination of softening prices and longer market times provides an opportunity to secure housing at a lower entry point than in previous years without the intense competition of a seller's market. Sellers, on the other hand, must be prepared for a longer sales cycle and should prioritize competitive pricing and property condition to stand out. While the immediate outlook suggests continued price stabilization, the area's relative affordability compared to nearby major hubs like Austin continues to make Killeen a viable long-term option for those seeking value in the Texas real estate market.