Is 2026 the Right Year to Downsize in Temple, Belton, or Salado — and How Do You Maximize Your Equity?

Yes — for many Temple, Belton, and Salado homeowners, 2026 offers a strategic downsizing window. Strong equity from 2020–2023 appreciation, Texas’s expanded homestead exemption, and no state income tax create favorable conditions for selling and repositioning your wealth.

If you bought your home in Bell County between 2005 and 2015, chances are you’re sitting on significant equity right now.

And if you’re 55+, an empty nester, or simply ready for less maintenance — you may be wondering:

Is this the year to make a move?

Let’s break down the financial and lifestyle factors shaping downsizing decisions in Temple, Belton, and Salado in 2026.

Why So Many Bell County Homeowners Are Considering Downsizing

Downsizing today isn’t just about age.

It’s about:

• Unlocking equity

• Reducing maintenance

• Improving cash flow

• Simplifying lifestyle

• Moving closer to amenities or grandkids

Across Texas, homeowners built record equity during the pandemic housing surge. According to the Texas Real Estate Research Center, more resale transactions are now exceeding the $500,000 federal capital gains exclusion threshold — something that was rare a decade ago.

That means even “modest” homes in Temple or Belton purchased years ago may now carry substantial built-in wealth.

What Your Equity Could Look Like in 2026

Current local MLS snapshot (Temple, Belton, Salado combined):

• Active Listings: 1,000+

• Closed Median Price: ~$299,000

• Average Sale-to-List Ratio: ~97%

• Average Days on Market: ~110

If you purchased at $180,000–$250,000 years ago, your gain could easily be $150,000–$250,000+.

And here’s where Texas gives you a major advantage.

Texas Tax Advantages Make Downsizing More Attractive

Texas has:

• No state income tax

• No state capital gains tax

• A 2026 homestead exemption of $140,000 for school district taxes

The expanded homestead exemption reduces taxable value — lowering ongoing costs when you purchase your next home.

For many downsizers in Salado or Belton, this improves monthly cash flow immediately.

Federal capital gains rules still apply, but most married homeowners qualify for up to $500,000 in tax-free gains on a primary residence (consult your CPA for specifics).

That combination makes 2026 uniquely favorable.

Where Downsizers Are Moving in Bell County

Downsizing doesn’t mean “downgrading.”

In fact, many homeowners are moving into:

• New low-maintenance construction

• Custom patio homes

• Acreage properties with less upkeep

• Master-planned communities

In Salado, communities like The Sanctuary are introducing modern, lifestyle-focused living while preserving small-town charm.

Belton remains attractive for Lake Belton proximity and convenient I-35 access.

Temple offers newer subdivisions with healthcare and shopping accessibility.

Each city offers a different downsizing strategy — which is why hyper-local expertise matters.

Is It a Good Time to Sell in This Market?

This is the key question.

Temple’s market has normalized.

Homes are averaging around 110 days on market — but well-priced, well-prepared homes are still moving.

If you’re downsizing, you’re not trying to “beat the market.”

You’re trying to:

1. Capture your accumulated equity

2. Transition into a more efficient home

3. Reduce long-term expense exposure

That strategy works in balanced markets.

Waiting for a speculative price spike rarely outperforms smart positioning.

How to Maximize Your Equity Before You List

Before listing, consider:

• Strategic cosmetic updates (paint, lighting, landscaping)

• Professional photography + video

• Pricing aligned with today’s buyer behavior

• Marketing targeted to relocation buyers

This is where working with the Home in Texas Team becomes critical.

As a mother-daughter run team serving Temple, Belton, and Salado, we help downsizers:

• Understand true net proceeds

• Evaluate tax implications (with professional partners)

• Compare sell-first vs buy-first strategies

• Time the transition smoothly

If you’re searching for the best realtor in Temple Texas or the best realtor in Belton Texas, strategy and financial clarity matter more than hype.

FAQ: Downsizing in Central Texas

Is 2026 a good year to downsize in Temple TX?

For many long-term homeowners, yes. Strong equity positions and favorable Texas tax structure make 2026 strategically attractive.

Will I lose money if the market softens further?

Real estate decisions are long-term. If you’ve owned 10+ years, short-term fluctuations rarely outweigh accumulated appreciation.

Should I buy before selling?

It depends on your equity position and risk tolerance. A tailored plan ensures you transition without financial stress.

The Bottom Line

Downsizing in Temple, Belton, or Salado in 2026 isn’t about fear.

It’s about freedom.

Freedom from maintenance.
Freedom from oversized expenses.
Freedom to reposition your wealth.

If you’re considering a move this year, let’s run the numbers together.

Home in Texas Team
Mother-daughter run | Relocation Specialist | First Time Homebuyer Specialist
Serving Temple, Belton, and Salado, Texas

Let’s build a smart transition plan around your equity — not just today’s headlines.