Texas Housing Market Update - May 2025
- brian59476
- May 16
- 2 min read
Texas Housing Market Update – May 2025
As of mid-May 2025, Texas's major metropolitan housing markets are navigating a complex landscape shaped by rising inventory, affordability challenges, and shifting buyer sentiment. Here's an overview of the current trends across key Texas MSAs:
Statewide Overview
Home Sales & Prices: In Q1 2025, Texas recorded 70,944 home sales, a 1.5% decrease year-over-year. The median sales price edged up by 0.3% to $331,000. (Texas REALTORS®)
Inventory & Days on Market: Active listings surged by 30.7%, with homes averaging 72 days on the market—an increase of one week compared to the previous year. (Texas REALTORS®)
Affordability: High mortgage rates, hovering around 6.75%, coupled with near-record home prices, continue to challenge affordability, leading to cautious buyer behavior. (WSJ)
Dallas–Fort Worth (DFW)
Inventory Growth: DFW experienced a notable increase in housing inventory, with active listings up significantly, providing buyers with more options. (Texas REALTORS®)
Market Dynamics: Despite the influx of listings, sales have softened, and prices are stabilizing, indicating a shift towards a more balanced market. (HousingWire)
Houston
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. (Houston Chronicle)
Price Movements: Average home prices increased by 5% to $425,150, with luxury home sales surging by 64%. (Houston Chronicle)
Inventory Levels: Active listings in Houston rose by 38%, the highest among Texas's major markets, contributing to a more favorable environment for buyers. (Texas REALTORS®)
Austin
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. (MySA)
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. (MySA)
San Antonio
Sales Activity: In 2024, home sales in San Antonio increased by 7% compared to 2023, totaling 35,230 homes sold. January 2025 saw a 6.6% year-over-year increase in sales. (San Antonio Express-News)
Price Trends: The median sales price in the area was $308,101 in 2024, a 3% decrease from 2023 but a 32.4% increase from 2019. (San Antonio Express-News)
Builder Incentives: Homebuilders are offering incentives such as reduced interest rates and closing costs to attract buyers, amid high mortgage rates and prices.
(WSJ)
Looking Ahead
While the Texas housing market faces challenges, including affordability concerns and cautious buyer sentiment, the increase in inventory and stabilization of prices in several markets suggest a potential shift towards a more balanced environment. Continued monitoring of economic indicators and market dynamics will be essential for stakeholders navigating the remainder of 2025.
For a visual summary of the current Texas housing market trends, you may find the following video informative:
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