Softening Home Markets See Increase in Buyers Entering
In 2025, the Texas real estate market is experiencing a significant shift, moving towards a buyer’s market. This transition is marked by rising inventory, stable or slightly declining home prices, more negotiation power for buyers, and an increased number of price cuts.
Compared to 15 years ago, the market dynamics are starkly different. Back in the recovery period following the 2008 housing crisis, Texas was grappling with tighter inventory, more moderate pricing, and slower sales growth. Over the past decade and a half, Texas experienced rapid population growth and housing demand that created multiple years of robust price appreciation and bidding wars.
Now, in 2025, the market is cooling to a more balanced state. Homes spend longer on the market, averaging around 57 days in North Texas during Q2 2025. The current inventory of homes is high and rising, with a 29.8% increase year-over-year. Builders have also slowed new construction by 8% year-to-date.
Some Texas cities, such as McKinney, have thrived as top housing markets due to strong recent growth and new construction. This provides buyers with a diverse housing supply and stable long-term prospects. In contrast, 15 years ago, many Texas cities had less new housing supply and more volatility.
Caralee Gurney, a real estate expert, states that this shift towards a buyer's market is evident. She notes that the inventory of homes has increased from about four months a year ago to six months now. This indicates a shift in the market dynamics, providing buyers with more options and negotiation power.
Gurney also points out that home sellers who are eager to sell may do so at a lower price due to the high inventory. However, she also mentions that some homeowners may choose to withdraw their homes from the market if they cannot achieve their desired price.
Despite these challenges, Gurney states that many buyers are showing interest in the market due to their experiences in the past few years. The potential lowering of mortgage interest rates by the end of the year could make this an opportune time to buy a home. Bargain hunters may also be actively seeking homes due to the high inventory of unsold homes.
In summary, the Texas real estate market in 2025 is shifting towards a buyer’s market characterized by rising inventory, stable or slightly declining home prices, more negotiation power for buyers, and an increased number of price cuts. This transition reflects Texas moving from a sellers' market and rapid expansion phase to a more balanced market with stabilized pricing and greater choice for buyers.
| Aspect | Texas Real Estate 2025 | Texas Real Estate ~2010 | |-------------------------|------------------------------------------|-------------------------------------------| | Market Type | Shifting toward buyer's market | Recovering from recession, tighter supply | | Inventory | High and rising (+29.8% year-over-year) | Lower, constrained | | Home Prices | Stable, pausing after long rise | Growing slowly or recovering | | Home Sales | Stable (+0.1% YoY) | Moderate growth | | Days on Market | Longer (~57 days North Texas Q2 2025) | Typically shorter or variable | | New Construction | Slowing (-8% year-to-date) | Increasing but constrained | | Notable Hot Markets | McKinney, Frisco, Richardson thriving | Emerging, less developed |
[1] Source: Dallas Morning News [2] Source: Real Estate Center at Texas A&M University [3] Source: McKinney Real Estate Market Report [4] Source: Frisco Real Estate Market Report [5] Source: Richardson Real Estate Market Report
- In light of the current real estate market in Texas, individuals interested in personal finance and investing might find it advantageous to consider investing in the housing market, given the buyer's market conditions, increased inventory, and stable or slightly declining home prices.
- With the shift towards a buyer’s market in Texas real estate, homebuyers now have more opportunities for negotiation and choice, making it an attractive time for those prioritizing personal finance and seeking to enter the housing market.
