The dominant seller’s market that has characterized the Dallas-Fort Worth (DFW) real estate landscape in recent years is showing clear signs of a shift.
Inventory levels have increased, seller price reductions are more common, and homes are staying on the market for longer stretches.
It’s too early to call the DFW area a buyer’s market. But it has definitely moved in that direction over the past 12 months and could reach that stage later this year.
DFW Housing Market Starting to Favor Buyers
Data from major Texas markets, including Dallas, are showing a significant year-over-year increase in housing inventory and a spike in new listings.
This rise in supply, coupled with a general slowdown within the real estate market, has created a more favorable environment for home buyers.
According to recent data from Altos Research, single-family homes in Dallas sold for an average of 10.1% less than their asking price in March of 2025. That was one of the largest gaps observed among the nation’s 50 major markets.
This metric and others like it show that DFW home buyers currently have more negotiating leverage when it comes to the sale price and terms.
A Perfect Storm of Market-Cooling Factors
This evolving dynamic is a notable departure from the fervent competition and rapid price escalation that defined the DFW market in the wake of the pandemic. Several macroeconomic factors appear to be contributing to this shift.
A primary driver is the level of mortgage rates. Following a period of volatility, the average rate on a 30-year fixed mortgage continues to hover near 7%. Elevated borrowing costs reduce affordability, reducing the pool of potential buyers or limiting what they can spend on a home.
Economic uncertainty is also playing a role in all of this. Anxiety surrounding new global tariff policies and concerns about inflation and a possible recession have negatively impacted consumer sentiment.
The University of Michigan Consumer Sentiment Index registered a considerable drop in April due to expectations of rising inflation tied to tariffs.
Similarly, a survey in March by John Burns Research & Consulting revealed a significant jump in the share of respondents expressing pessimism about the economy.
This uncertainty influences behavior on both sides of the transaction.
- Sellers who expect the economy to worsen might be more inclined to list their properties sooner rather than later.
- Buyers might choose to delay large purchases like homes, adopting a wait-and-see approach for the time being.
This divergence in behavior (an increase in properties hitting the market corresponding with a reduction in buyer demand) naturally leads to an accumulation of inventory.
Texas Housing Market Inventory Has Increased
According to a report from the Texas Real Estate Research Center (TRERC) at Texas A&M University, published earlier this week:
“The rise in housing inventory remains a central theme, with February marking the 13th consecutive month of year-over-year inventory growth at a pace of 30 percent. Current inventory levels now sit approximately 35 percent above pre-pandemic figures…”
This trend is creating more favorable conditions for buyers, while putting downward pressure on home prices.
According to TRERC economist Yanling Mayer: “The continued increase in inventory is a sign of cooling demand, and it’s reshaping the market dynamic across Texas.”
Among the major metropolitan areas in Texas, the Dallas-Fort Worth metro had the most inventory growth over the past year, with a 38% increase in listings. That’s based on an April 2025 report from Realtor.com.
The DFW metro’s strong inventory growth puts it among a group of 18 U.S. metros where the number of homes for sale exceeds the levels seen before the pandemic.
More Sellers Are Slashing Their List Prices
The percentage of homes undergoing price reductions has also risen over the past year, suggesting a shift toward buyer-friendly conditions.
According to data from Redfin, about 35% of real estate listings in the Dallas-Fort Worth area had at least one price reduction during the month of March. That was well above the national average of 19% price cuts.
Some of the counties surrounding Dallas, like Tarrant and Kaufman, are experiencing even higher rates of seller price reductions.
Related: Challenges for Texas home sellers in 2025
Zillow: Dallas Home Values Have Declined
In April, Zillow reported that the median home value for the Dallas-Fort Worth-Arlington metropolitan area had dipped down to around $373,000. That marks a decline of 1.3% from a year ago, another sign of a soft market.
Here are the latest median prices and year-over-year (YoY) trends for the most populous cities in the DFW area, based on Zillow’s data:
- Dallas: $311,280 (-2.1% YoY)
- Fort Worth: $301,620 (-1.6% YoY)
- Arlington: $314,522 (-1.6% YoY)
- Plano: $521,260 (-1.5% YoY)
- Garland: $298,423 (-2.4% YoY)
- Irving: $345,378 (-1.3% YoY)
- Frisco: $684,716 (-0.2% YoY)
- McKinney: $514,209 (-1.9% YoY)
As you can see, home prices have declined in most major cities, to varying degrees. Among the major cities, Garland experienced the biggest year-over-year drop in values.
All of these trends suggest that the DFW metro area is moving away from the seller’s market of a few years ago—and toward a more neutral playing field. If conditions continue to shift that way over the coming months, Dallas-Fort Worth could see its first buyer’s market in many years.
A Mixed Message for Home Buyers
For potential buyers, the evolving real estate market presents opportunities that were largely absent during the past few years.
In 2025, Dallas-area home buyers have more properties to choose from and a more relaxed pace. They have more time for due diligence and less pressure to make hasty decisions.
Additionally, the rise in price reductions shows that sellers are generally more willing to negotiate. This gives buyers a chance to secure a property below the initial asking price.
But at the same time, the market is plagued by ongoing economic uncertainties. We don’t yet know the full effect of Trump’s trade wars, or whether they will push into a full-blown recession.
This makes home buyers increasingly hesitant about entering the market.
The real estate market tends to ramp up through spring and into summer. So the coming months will give us a better sense of where things are headed, and if we might see a classic buyer’s market later this year.
5 Key Takeaways From This Report
Here are five key points to take away from this report:
- The Dallas-Fort Worth housing market is shifting away from a strong seller’s market and moving toward more buyer-friendly conditions.
- Inventory levels have increased significantly, giving buyers more options and greater negotiating power.
- Homes are sitting on the market longer and more of them are getting price reductions.
- Home values have declined slightly across most major DFW cities, with the possibility of additional declines throughout 2025.
- Economic uncertainty is making some buyers cautious and hesitant to enter the market.
We expect the DFW housing market to remain neutral for a while longer, meaning that it won’t strongly favor either buyers or sellers. But if the economy slows and consumers grow wary, Dallas could become a strong buyer’s market later this year.
Disclaimer: Real estate forecasts are an educated guess and therefore far from certain. The publisher makes no claims or guarantees about future market trends.
Brandon Cornett
Brandon Cornett is a veteran real estate market analyst and reporter. He has been covering the U.S. real estate market for nearly 20 years. More about the author