I just installed a new wood fence on my property about 6 months ago. I
just got around to treating it with water seal, and I've noticed one
part the wood seems mushy with little holes, here and there. They
appear to be oval shape on a 45' angle. It's on a very small part of
the fence.

Is this termites or what? I can only assume it is, since the house
was treated 5 years ago before I bought it. If I finish sealing the
rest of the fence, would the treatment deter these things?