Are you planning to sell your house in Texas later this year?
If so, you need to understand how the Texas real estate market has changed over the past year, and how those changes affect both buyers and sellers.
This report looks at some of the most important trends Texas home sellers should know about in 2025, before listing their homes for sale.
Here are five key points covered in this report:
- The Texas housing market favors buyers more than sellers in 2025, with longer selling times and more competition.
- Inventory is up across all major metro areas, giving buyers more choices and forcing sellers to price competitively.
- Homes are also taking longer to sell, spending a median of 65 – 70 days on the market.
- Price reductions are more common while bidding wars are rare, as fewer homes sell above the asking price.
- Home prices have dipped slightly in many areas, so sellers should expect cautious buyers and be willing to negotiate.
Sellers Are Feeling Good About the Market
An April 2025 survey from Realtor.com found that a lot of homeowners believe now is a good time to sell a home.
To quote their report:
“Potential sellers are optimistic about the selling process, with 81% thinking they’ll get their asking price or more, 75% thinking it will take the average time or shorter than usual to sell, and 63% thinking they won’t have to make significant or unexpected concessions.”
But as we know, real estate market conditions can vary from one state to the next—and even among major cities within the same state.
So let’s shift our focus to the state of Texas, with a look at current trends that might affect sellers over the coming months.
Challenges for Texas Home Sellers in Spring 2025
The first thing you should know is that it’s generally harder, and takes longer, to sell a home in Texas in 2025, when compared to previous years.
Over the past couple of years, the Texas real estate market has shifted in a way that gives home buyers more property choices and more bargaining power.
Homes are taking longer to sell, prices have leveled off, and inventory levels have risen in nearly every major city across the Lone Star State. Most of these changes benefit buyers.
Here are some recent and ongoing trends sellers in Texas should be aware of in spring 2025, and for the foreseeable future.
1. Sellers have more listings to compete with in 2025.
According to data from Redfin, the “months of supply” for the state of Texas has been fluctuating between 4.5 and 5 months. That’s the most supply we’ve seen for several years.
To put it differently: Texas currently has more homes listed for sale than it has had for a long time. This gives buyers more options while making it harder for sellers to stand out.
We used data from Realtor.com to determine how much inventory levels have increased within the four largest metro areas in Texas.
Here’s how active real estate listings have changed over the past year:
- Austin-Round Rock-San Marcos: +22.1%
- Dallas-Fort Worth-Arlington: +38.4%
- Houston-Pasadena-The Woodlands: +30.5%
- San Antonio-New Braunfels: +17.7%
While supply levels are up all across the state, the Dallas-Fort Worth metroplex has seen the biggest increase in listings over the past year, at nearly 40%.
The takeaway: With more listings to compete with, home sellers in Texas have to be realistic when setting their list prices and negotiating with buyers.
2. Homes are taking longer to sell.
Homes in Texas are taking longer to sell in spring 2025, compared to recent/previous years.
The median days on market (DOM) has fluctuated between 65 and 70 days over the past few months. That’s based on data from Redfin, which also includes Multiple Listing Service (MLS) data.
This metric measures the median number of days that homes spent on the market before going under contract, meaning the seller accepted an offer from a buyer.
The following graph shows the median DOM for Texas. As you can see, the real estate market is currently moving at its slowest pace in years, when measured by time on market.
The takeaway: Sellers who want to secure a quick sale in the current market will need to go above and beyond when it comes to pricing, staging, and marketing.
3. Price reductions are more common these days.
During the home buying frenzy of 2020 to 2022, sellers in Texas could expect to receive offers above the list price due to stiff competition among buyers.
This was especially true in the so-called pandemic “hotspots” like Austin and DFW.
But things have changed dramatically since then.
Currently, only about 11% of homes across Texas are selling above the list price. On the flip side, roughly 30% of real estate listings had at least one price reduction last month.
The takeaway: These trends show that buyers are less willing to pay above the list price, and more inclined to negotiate the price downward. Bidding wars are rare.
4. Weak home prices could make buyers cautious.
In many Texas cities, home prices have declined slightly over the past year. This could make some buyers more conservative and cautious with their offers.
According to Zillow: “The average Texas home value is $303,321, down 0.7% over the past year…”
Here’s how the median home price has changed in Texas’s four major metropolitan areas, according to data from Zillow:
- Austin-Round Rock-San Marcos: -3.9%
- Dallas-Fort Worth-Arlington: -1.3%
- Houston-The Woodlands-Sugar Land: -0.2%
- San Antonio-New Braunfels: -3%
Going forward, home prices in many Texas cities will probably either remain flat or experience additional, moderate declines. A lot depends on the broader economy, and there’s plenty of uncertainty in that department.
The takeaway: Sellers in Texas should pay close attention to home price trends in their local markets and negotiate accordingly. Expect buyers to be cautious.