Housing Market Update in Dallas–Fort Worth (2025–2026)
The Dallas–Fort Worth housing market is entering a new phase in 2026—one defined less by scarcity and bidding wars and more by stabilization, rising inventory, and improving affordability conditions.
After several years of rapid price appreciation and historically low supply, reputable data sources now show measurable improvements in housing inventory, moderating mortgage rates, and steady home sales activity across North Texas.
Below is a data-driven look at what’s changing—and why it matters for buyers, sellers, and real estate investors.
🏡 Existing & New Home Sales in Dallas–Fort Worth
Home sales activity in North Texas has stabilized and begun to improve, following a slowdown driven by higher interest rates in 2024–2025.
Existing home sales nationally increased 5.1% month-over-month in December 2025, signaling renewed buyer activity as mortgage rates eased
(Source: Reuters)North Texas resale transactions posted modest year-over-year gains toward the end of 2025, according to regional real estate associations and market analysts
New home sales slowed temporarily in late 2025, a typical adjustment phase as builders responded to affordability constraints and higher inventory levels
Why it matters:
Markets often stabilize before accelerating again. The current sales pace suggests demand remains intact, especially as financing conditions improve.
💰 Mortgage Interest Rates Are Easing
Interest rates remain the most influential factor in the housing market—and DFW buyers are seeing relief.
Average 30-year mortgage rates declined from roughly 6.7% to around 6.1% in 2025
Local and national forecasts expect rates to stabilize in the high-5% to low-6% range in 2026
Falling rates have already contributed to increased mortgage applications and renewed buyer confidence
Why it matters:
Even a 0.5% drop in mortgage rates significantly increases purchasing power, bringing more buyers back into the market.
🏘️ Housing Inventory Is Rising Across DFW
Perhaps the most meaningful shift in the Dallas–Fort Worth housing market is inventory growth.
Active housing listings in the DFW metro exceeded 25,000 homes by late 2025, up substantially from prior years
(Source: Federal Reserve Economic Data – St. Louis Fed)Months of supply have increased toward more balanced, pre-pandemic levels
Price reductions are becoming more common than price increases, signaling improved buyer leverage
Why it matters:
More inventory means less competition, fewer bidding wars, and more negotiating power for buyers—a critical change after years of extreme supply shortages.
📊 DFW Housing Market Snapshot (2025–2026)
Dallas–Fort Worth Housing Market Trends
──────────────────────────────────────
Home Sales Pace
Existing Homes ▓▓▓▓▓▓▓▓▓▓ Stabilizing / Slight Growth
New Construction ▓▓▓▓▓▓▓▓ Cooling but resilient
Mortgage Rates
2024 High ▓▓▓▓▓▓▓▓▓▓▓▓▓▓ ~6.7%
Late 2025 ▓▓▓▓▓▓▓▓▓▓▓▓▓ ~6.1%
2026 Outlook ▓▓▓▓▓▓▓▓▓▓▓ ~5.8–6.0%
Housing Inventory
Active Listings ▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓ Rising
Market Balance Moving from seller-heavy to neutral
🔎 What This Means for Buyers, Sellers, and Investors
✔ Buyers
More inventory
Less competition
Improving affordability trends
✔ Sellers
Realistic pricing matters
Well-prepared homes still transact
Demand remains steady for quality listings
✔ Investors
A healthier, more balanced market
Reduced volatility
Improved underwriting conditions as rates stabilize
📌 Bottom Line: A Healthier DFW Housing Market
The Dallas–Fort Worth housing market is not collapsing—it’s recalibrating.
With rising inventory, moderating mortgage rates, and steady home sales, North Texas is transitioning toward a more sustainable housing environment in 2026—one that benefits long-term homeowners and disciplined investors alike.