Texas
Housing Market
The landscape of the housing market in Texas constantly evolves with shifting home prices and demand. Houzeo’s housing market report tracks constant changes in supply and demand across Texas. Our data offers real-time insights to help you make informed decisions.
Overview
Supply
Demand
Buy or Sell
Market Insights
MigrationTexas Housing Market Overview
Housing prices in Texas show a 1.1% YoY growth as of January 2025. The constant growth in home prices indicates the strength of the housing market. Currently, the Texas median home price is $335,600. The number of homes sold has decreased by 1.2% YoY.
You can also check the market competitiveness through median days on the market. Homes in Texas now spend 72 days on the market before going under contract. All these metrics indicate the pace and affordability of the current housing market in Texas.
What Does It Mean for Home Buyers and Sellers?
You can also check the market competitiveness through median days on the market. Homes in Texas now spend 72 days on the market before going under contract. All these metrics indicate the pace and affordability of the current housing market in Texas.
What Does It Mean for Home Buyers and Sellers?
- If You're a Buyer: You get more negotiation power due to extended median days on the market. Stabilized mortgage rates at around 6.6% make it even better. So, whether you are looking for a condo in Houston or a single-family home in Dallas, you can easily afford your dream Texas home.
- If You're a Seller: You can still make profits if you sell before prices decline any further. With the rate of home sales dropping, you must be ready to offer concessions to buyers.
Texas Housing Supply
Texas is among the most affordable states in the country. Living expenses are lower than the national average. The number of homes for sale in Texas constantly grows to fulfill the demand of people moving here. It increased by 14% year over year in January 2025. About 142,352 homes for sale are available in Texas. Presently, the Texas market is balanced with 6 months of supply. Fewer months indicate a seller’s market and more months indicate a buyer’s market.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: You have an advantage with the increased number of homes for sale. The increasing inventory will potentially meet the demand and stabilize house prices in Texas. Also, lower taxes attract more buyers. If You're a Seller: You must act fast and sell your home before more supply hits the Texas real estate market. Rising inventory could lower demand and lead to fewer offers from buyers. To attract buyers, focus on staging and marketing your home.
What Does It Mean for Home Buyers and Sellers?
Texas Housing Demand
The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply.
Only 10.6% of homes in Texas sold above the list price in January 2025. On the other hand, 30.4% of homes had price drops. The 96.9% sale-to-list price suggests fewer bidding wars and more price flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
If You're a Buyer: The current Texas housing market shifts in your favor with better deals. 30.4% of homes with price drops suggest fewer bidding wars and better affordability for Texas home buyers. If You're a Seller: You'll need patience as only 10.6% sell above the list. You will have to wait till spring and summer when housing demand increases. During summer, you may experience high demand and more bidding wars for homes. Right now, the Texas real estate market favors buyers with less demand and more negotiation power.
Only 10.6% of homes in Texas sold above the list price in January 2025. On the other hand, 30.4% of homes had price drops. The 96.9% sale-to-list price suggests fewer bidding wars and more price flexibility for buyers.
What Does It Mean for Home Buyers and Sellers?
Is It a Buyer’s or Seller’s Market?
Strong
Buyer
Buyer
Balanced
Seller
Strong
Seller
Buyer’s Market
Seller’s Market
Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.
Is It a Buyer’s or Seller’s Market?
As of January 2025, the Texas housing market leans towards home buyers due to increased inventory and extended days on the market. Buyers have more leverage in Texas as the number of homes for sale increased by 14% YoY.
However, higher mortgage rates (6.5%-7.%) may reduce buying power, and a rise in new active home listings may attract home shoppers. Market trends can vary by region and should be assessed locally.
Texas Housing Market Insights
The housing market in Texas has seen significant shifts in recent years. Rising property prices in Texas have become a defining shift driven by high demand and limited inventory. The market faces new construction challenges and an influx of relocation buyers, particularly from high-cost states.
However, real estate in Texas may face headwinds with the increase in mortgage rates. Housing markets like Dallas and Houston have cooled off due to low competition. Homes in such cities spend an average of more than 60 days on the market. Overall, Texas’s housing market favors home buyers. If you’re buying a property in Texas, you must check for moving expenses and HOA fees as well. Looking ahead, Texas housing market predictions for 2025 suggest continued growth as the market stabilizes and adjusts to ongoing economic factors.
However, real estate in Texas may face headwinds with the increase in mortgage rates. Housing markets like Dallas and Houston have cooled off due to low competition. Homes in such cities spend an average of more than 60 days on the market. Overall, Texas’s housing market favors home buyers. If you’re buying a property in Texas, you must check for moving expenses and HOA fees as well. Looking ahead, Texas housing market predictions for 2025 suggest continued growth as the market stabilizes and adjusts to ongoing economic factors.
Nationwide Migration Trends
Affordable cost of living, better climates, and strong job markets drive migration patterns across the states. The Lone Star State has experienced rapid migration growth. There are plenty of affordable places, like Wichita Falls, Abilene, and San Antonio, with median prices ranging from $199k to $255k.
The state’s lower income tax and job growth have contributed to a migration surge from California, Chicago, and the East Coast. Families and professionals tend to move here from expensive areas like San Francisco, Los Angeles, and Washington.
The state’s lower income tax and job growth have contributed to a migration surge from California, Chicago, and the East Coast. Families and professionals tend to move here from expensive areas like San Francisco, Los Angeles, and Washington.
Frequently Asked Questions
Will the housing market crash in Texas in 2025?
According to the Texas housing market forecast, it’s very unlikely that the market will crash in 2025. Prices are projected to experience sustained growth through 2025.
Are home prices dropping in Texas?
No, property values in Texas aren't dropping drastically, but they show varied local trends. Statewide prices rose 1.1% year over year in January 2025, and markets like Dallas and Austin saw significant gains. Experts forecast continued 3.5% growth in 2025, though increased homes for sale in Texas may moderate prices in overvalued areas.
Which city has the cheapest housing market in Texas?
If you choose to move to Texas from expensive places like New York or California, you will save at least 26.6% to 56% on your overall spending. El Paso ($259k) and Wichita Falls ($199k) are among the most affordable housing markets with the lowest median sale prices. You can also check the cheapest places to live in Texas.
Should I wait for some time before buying houses in Texas?
As a buyer, you can get a fair deal with stable prices and a growing inventory of homes. The average home price in Texas is $335,600. If you’re buying a Texas house, you should first get a mortgage pre-approval. You will also need to budget for a down payment of at least 10%.
How can I list my home for sale in Texas?
You can list your home for sale with a Flat Fee MLS Texas listing service. High-tech MLS listing sites like Houzeo automatically assign the right MLS paperwork based on your location. 🚀
What is the average mortgage rate for buyers in Texas?
The average mortgage rate for buyers in the Texas real estate market fluctuates between 6.25% and 6.91%. When you apply for a mortgage, always check your credit score and the current interest rates with lenders.
How does Texas's housing market compare to the national market?
Texas's housing market is outperforming the national market, with higher price growth and demand due to factors like relocation from other states and favorable tax conditions. The cost of living in Texas is 6% to 7% lower than the US average.
Is now a good time to buy or sell a home in Texas?
You must check the current trends in housing prices and inventory in your city. Sellers can benefit from high demand and rising prices. However, if mortgage rates are stable and the months of supply are more than six months, that’s the best time to buy a house in Texas.
How have home prices changed in Texas over the past years?
Average median home prices in Texas have continued to rise over the past years, driven by high demand and low inventory. The median house prices in Texas have increased at an average growth rate of 1.1%, with some regions seeing double-digit percentage growth. You can check your home’s fair market value with our free home value estimator
What are the Texas housing market predictions for 2025?
TThe housing market in Texas is expected to stabilize in 2025, with slower price growth and rising mortgage rates. Housing inventory will increase enough to stabilize the price growth.
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