Texas’s real estate market is experiencing a period of stabilization, characterized by increased inventory, moderated price growth, and extended time on the market. Here’s a comprehensive overview:
🏠Statewide Market Overview
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Median Sale Price: In April 2025, the median home sale price in Texas was $348,000, reflecting a slight decrease of 0.93% compared to the previous year.
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Average Home Value: The average home value stood at $307,629, down 1.4% year-over-year.
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Inventory Levels: Active listings surged by 30.7%, providing buyers with more options and contributing to a more balanced market.
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Median Days on Market: Homes spent a median of 54 days on the market, an increase of 9 days from the previous year.
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Mortgage Rates: High mortgage rates, hovering around 6.75%, coupled with near-record home prices, continue to challenge affordability, leading to cautious buyer behavior.
đź“Š Market Dynamics
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Home Sales Volume: In Q1 2025, Texas recorded 70,944 home sales, a 1.5% decrease year-over-year.
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Affordability Concerns: Despite Texas’s housing-friendly policies, affordability remains a significant issue, with home prices in metropolitan areas more than doubling since 2010, outpacing income growth.
🌆 Regional Highlights
Dallas–Fort Worth (DFW)
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Inventory Growth: DFW experienced a notable increase in housing inventory, with active listings up significantly, providing buyers with more options.
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Price Trends: Despite the influx of listings, sales have softened, and prices are stabilizing, indicating a shift towards a more balanced market.
Houston
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Sales Trends: After a two-year slump, Houston’s housing market is showing signs of recovery, with home sales rising for the fourth consecutive month as of December 2024.
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Price Movements: Average home prices increased by 5% to $425,150, with luxury home sales surging by 64%.
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Inventory Levels: Active listings in Houston rose by 38%, the highest among Texas’s major markets, contributing to a more favorable environment for buyers .
Austin
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Rental Market: Austin leads the nation in rent price declines, with a 9.6% year-over-year drop in median rent, now at $1,399. This trend is attributed to a surge in home construction during the pandemic, increasing housing availability.
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Affordability: The decrease in rent prices has made renting more affordable than buying, with monthly mortgage payments often exceeding rental costs by over $1,000.
Central Texas (Austin–Round Rock)
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Inventory Surge: Active listings increased by 20.6% year-over-year, creating new opportunities for homebuyers in the region.
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Price Appreciation: The median sales price rose 4.7% year-over-year to $409,765 in the Austin-Round Rock-San Marcos MSA.
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Market Dynamics: Buyers in Round Rock, Cedar Park, Georgetown, and surrounding areas are finding themselves with more choices and increased negotiating power due to the rise in inventory.
Suburban Growth
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Princeton: Located about 40 miles from Dallas, Princeton has emerged as the fastest-growing town in the U.S. for populations under 37,000, with a remarkable 30.6% population increase from July 2023 to July 2024. The town appeals to younger, affluent professionals due to its affordability and proximity to major job markets in North Dallas and Plano .
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Cedar Park: The average list price in Cedar Park is currently $624,927, while the median list price is $556,000. Compared to earlier peaks, prices have softened, with over half of the listings experiencing price drops, indicating downward pricing pressure.
đź”® Market Outlook
Texas’s housing market is expected to maintain its steady growth trajectory through the remainder of 2025. The combination of rising home values and increasing inventory suggests continued competition among buyers, particularly in urban centers like Dallas–Fort Worth and Houston. However, the market remains relatively affordable compared to national averages, making it attractive for both first-time homebuyers and investors.