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Featured local agent — Palacios, TX
Sarah Mitchell
Compass Real Estate · Palacios, TX
“Your trusted relocation specialist since 2009. 350+ homes sold. Zero-pressure, data-first approach.”
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Palacios, TX Housing Market
The typical home in Palacios, TX is worth $197,894, held roughly flat 0.5% over the past year (Zillow Home Value Index, August 2026). The last median sale price Redfin published was $457,500, +80.5% year over year (through May 2026). With 30.0 months of supply and homes going under contract in about 92 days, Palacios is a buyer's market. At today's 7.03% 30-year fixed rate, 20% down on a $197,894 home is about $1,056/mo in principal and interest.
Key numbers for Palacios, TX
Typical home value
$197,894
-0.5% in 12 months
Zillow, August 2026
Median sale price
$457,500
+80.5% year over year
Redfin, through May 2026
Days on market
92
Slow-moving
Redfin, through May 2026
Active listings
30
30.0 months of supply
Redfin, through May 2026
30-yr fixed rate
7.03%
Freddie Mac weekly average
Freddie Mac via FRED, September 2026
Median household income
$60,613
Home costs 3.3x income
U.S. Census ACS, 2023
Sale-to-list ratio
92.4%
Selling below asking
Redfin, through May 2026
Zillow figures are as of August 2026 and refresh monthly. Redfin figures are through May 2026 — Redfin stopped publishing its public market trackers in June 2026, so those numbers are final, not current. Mortgage rates come from Freddie Mac via FRED and update weekly.
Is Palacios a buyer's or seller's market?
Palacios, TX is a buyer's market, based on 30.0 months of supply and homes selling in about 92 days. Above 7 months of supply is a glut: inventory is well ahead of the sales pace, and buyers can take time to inspect, compare, and negotiate concessions.
Inputs are Redfin's final published period (May 2026). How we classify markets · Where the data comes from
What does the Palacios housing market data show?
Every row below is Redfin's final published month for Palacios, TX. Redfin, through May 2026
| Metric | Value |
|---|---|
| Median sale price | $457,500 |
| Median list price | $139,900 |
| Year-over-year price change | +80.5% |
| Median price per sq ft | $212/sq ft |
| Median days on market | 92 days |
| Active inventory | 30 listings |
| Months of supply | 30.0 months |
| Sale-to-list price ratio | 92.4% |
| Homes sold (that month) | 1 |
| New listings (that month) | 7 |
| Listings with a price cut | 16.7% |
| Market condition | Buyer's market |
How to read these numbers
- Median sale price
- Half the homes that closed sold for more than this, half for less. It moves with what kind of home sold that month, so a quiet month with two big sales can swing it. Redfin's figure for Palacios is frozen at May 2026.
- Typical home value (ZHVI)
- Zillow's estimate of what a mid-market home in Palacios is worth right now, whether or not it sold. It is smoother than the median sale price and it still refreshes monthly, which is why this page leads with it.
- Months of supply
- How long it would take to sell every active listing at the current pace. Under 3 favors sellers, over 6 favors buyers, and 3 to 6 is the balanced band.
- Days on market
- Median time from listing to accepted offer. Short means you should have financing ready before you tour; long means there is room to negotiate on price and repairs.
- Sale-to-list ratio
- Sale price divided by the last asking price. Above 100% means bidding above asking is normal here; below 100% means the typical buyer got a discount.
- Price per square foot
- The size-adjusted price. Use it to compare a 1,400 sq ft house to a 2,600 sq ft house, not to value your own home — lot, condition and age move it a lot.
- Listings with a price cut
- Share of active listings that dropped their asking price in the month. A high share is the earliest visible sign that sellers are ahead of what buyers will pay.
- Typical asking rent (ZORI)
- Zillow's repeat-rent index for asking rents on new leases. Paired with the home value it gives the price-to-rent ratio in the rent-vs-buy section below.
How have Palacios home prices moved?
Over the last three years the median sale price in Palacios, TX rose 72.7%, from $264,900 to $457,500. The live Zillow value series has held roughly flat 0.5% in the last 12 months, which is the more current read now that Redfin's series has stopped. 16.7% of Palacios listings cut their asking price in the final Redfin month — a modest share, which is what a market looks like when sellers are pricing close to where homes actually clear. For prices to fall meaningfully from here, supply would have to keep building past 30.0 months while the sale-to-list ratio slips below its current 92.4%. Watch those two together — they move before the median does.
Redfin, through May 2026 — the chart ends at Redfin's final published month.
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What does it cost to buy a home in Palacios?
Priced off the typical home value of $197,894 at the current 7.03% 30-year fixed rate. These are principal and interest only — property taxes, homeowner's insurance, HOA dues and mortgage insurance are on top, and they vary enough by property that we will not guess them for you.
| Down payment | Cash at close | Loan amount | Monthly P&I |
|---|---|---|---|
| 20% | $39,579 | $158,315 | $1,056/mo |
| 5% | $9,895 | $187,999 | $1,255/mo |
Zillow, August 2026 for the price · Freddie Mac via FRED, September 2026 for the rate
What income do you need?
Lenders generally want housing costs under 28% of gross income. On the 20%-down payment of $1,056, that implies roughly $45,277 a year before you add taxes and insurance. The median household in Palacios earns $60,613, about $15,336 more than that threshold — the typical local household clears the payment on a typical local home with 20% down. That puts the price-to-income ratio at 3.3x — close to the historical 3x norm, which is unusual in 2026.
Run it with your own numbers: affordability calculator · mortgage calculator
Buying in Palacios in the next 12 months?
Tell us your timeline. We send the Palacios market brief: the price ranges that actually clear, how long homes sit, and what to fix on your credit before you apply.
Is it cheaper to rent or buy in Palacios?
Zillow does not publish a rent index (ZORI) for Palacios, TX, so we cannot compute a price-to-rent ratio here without borrowing a nearby market's rents and calling them local — which we will not do. The rent vs. buy calculator works with a rent figure you supply.
Is inventory rising or falling in Palacios?
Active listings in Palacios, TX went from 27 in May 2025 to 30 in May 2026, a +11.1% change. Rising inventory is the single most useful leading indicator for buyers: more choice, longer marketing times, and more sellers willing to negotiate before price cuts show up in the median.
| Month | Active listings | New listings |
|---|---|---|
| June 2025 | 25 | 1 |
| July 2025 | 23 | 4 |
| August 2025 | 20 | 1 |
| September 2025 | 22 | 6 |
| October 2025 | 17 | 2 |
| November 2025 | 16 | not published |
| December 2025 | 11 | 1 |
| January 2026 | 24 | 17 |
| February 2026 | 21 | 3 |
| March 2026 | 26 | 9 |
| April 2026 | 25 | 4 |
| May 2026 | 30 | 7 |
Redfin, through May 2026
How does Palacios compare to Texas and the U.S.?
Palacios homes sell for $457,500 — 28% above the Texas median of $356,100. Against the national median of $410,700, Palacios runs 11% higher. Year-over-year, Palacios moved +80.5% against Texas's +2.1% — a bigger swing than the state as a whole.
| Market | Median sale price | YoY | Days on market |
|---|---|---|---|
| Palacios, TX | $457,500 | +80.5% | 92 days |
| Texas statewide | $356,100 | +2.1% | 56 days |
| United States | $410,700 | not published | not published |
City and state rows: Redfin, through May 2026 · U.S. row: Freddie Mac via FRED, April 2026 (MSPUS, quarterly)
What to do next in Palacios
What buyers should watch
- Months of supply, currently 30.0. It turns before price does — when it climbs past 6, sellers start taking offers they would have rejected a quarter earlier.
- The share of listings cutting price, currently 16.7%. A listing that has already cut once is the one most likely to accept below asking.
- The gap between 5% and 20% down here is $198 a month in principal and interest alone, before mortgage insurance. That gap, not the price, is usually what decides your timeline.
- Rate moves. At 7.03%, every full point of rate change moves the payment on a $197,894 home more than a 5% price change does.
- Your credit tier before you shop, not after — it sets the rate you are quoted. Run your numbers first.
What sellers should know
- The median Palacios listing goes under contract in 92 days. If yours passes that mark, the market is telling you the price is wrong — not that you need more showings.
- Homes here close at 92.4% of asking. Price to that ratio from day one rather than chasing the market down in cuts.
- In the last published month Palacios added 7 new listings against 1 sales — more competition arriving than clearing, so early timing matters.
- Your equity moved -0.5% in the last 12 months on the Zillow value series. That, not the price you paid, is what sets your net proceeds.
- Comparable ZIP-level pricing inside Palacios varies more than the citywide median suggests — check the ZIP pages below before you set a number.
Homes for sale in Palacios
There are currently 30 homes listed for sale in Palacios, Texas. The median listing price is $140K.
Active listings
30
Homes on market
Median list price
$140K
Avg. days on market
92
Days until sale
New this week
7
Newly listed
How much do homes cost in Palacios by property type?
How the Palacios, TX market breaks down across single-family homes, condos and townhouses. Redfin, through May 2026
| Property type | Median price | Price / sq ft | Homes sold | Days on market |
|---|---|---|---|---|
| Single-family | $457,500 | $212/sq ft | 1 | 92 days |
Who lives in Palacios?
American Community Survey estimates for Palacios. U.S. Census ACS, 2023
Population
4,394
Households
1,746
Median income
$60,613/yr
Median age
40.8 years
Owner-occupied
78.4%
Median home value
$153,000
Median gross rent
$1,042/mo
Mean commute
18.9 min
78.4% of occupied homes in Palacios are owner-occupied, and the rest are rented — which is the share that decides how much of the local housing stock ever reaches the for-sale market. The Census self-reported median home value is $153,000 against Zillow's $197,894 typical value; the gap is normal — ACS asks owners what they think their home is worth, Zillow models transactions.
Which public schools serve Palacios?
3 schools tracked · 1,266 students
The largest public schools serving Palacios, TX by enrollment, drawn from the National Center for Education Statistics. School quality is a commonly cited factor in home-buying decisions — these are the campuses families in this area are most likely to encounter.
PALACIOS JUNIOR SENIOR H S
Grades 6-12 · 659 students
CENTRAL EL
Grades PK-2 · 359 students
EAST SIDE INT
Grades 3-5 · 248 students
Source: National Center for Education Statistics, Common Core of Data directory. Updated annually. Ratings and test scores are not currently displayed.
Which cities are near Palacios, TX?
Ordered by distance from Palacios, not by size. Compare Palacios side by side with any of them.
Palacios housing market FAQ
Is Palacios a buyer's or seller's market?
Palacios, TX is currently a buyer's market. That read comes from 30.0 months of supply, homes going under contract in about 92 days, and sellers getting 92.4% of their asking price in the last month Redfin published (May 2026).
How much do homes cost in Palacios?
The typical home in Palacios, TX is worth $197,894 (Zillow Home Value Index, August 2026). The median sale price in the last month Redfin published was $457,500, about $212 per square foot.
Is Palacios cheaper than the rest of Texas?
Palacios's median sale price of $457,500 is 28% higher than the Texas statewide median of $356,100, and 11% above the U.S. median of $410,700. Both figures are for the same period.
How long do homes take to sell in Palacios?
Homes in Palacios, TX spent a median of 92 days on market before going under contract, versus 56 days statewide. Over two months means buyers have time to inspect, compare and negotiate. (Redfin, through May 2026.)
What income do you need to buy a home in Palacios?
At the current 30-year fixed rate of 7.03%, 20% down on a $197,894 home is about $1,056 a month in principal and interest. Lenders typically want that under 28% of gross income, which works out to roughly $45,277 a year before taxes, insurance, HOA dues or mortgage insurance. The local median household income is $60,613.
Are home prices rising in Palacios?
The typical home value in Palacios, TX held roughly flat 0.5% over the last 12 months, from $198,811 to $197,894 (Zillow, August 2026). This is the live series — it refreshes monthly.
What are the cheapest ZIP codes in Palacios?
Palacios ZIP-level sale prices are not all published for the same period, so ranking them would compare different months. The ZIP pages listed on this page show what we hold for each one individually.
Is now a good time to buy in Palacios?
That depends on your timeline, not on a headline. What the data says today: Palacios, TX is a buyer's market with 30.0 months of supply, the 30-year fixed rate is 7.03%. Properties Incorporated publishes the data; it does not give financial advice.
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