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Map of Dallas–Fort Worth counties with rising inventory and shifting home prices in 2025.

How the DFW Market Is Shifting in 2025

July 14, 20253 min read

How the DFW Market Is Shifting in 2025

by Steve

Map of Dallas–Fort Worth counties with rising inventory and shifting home prices in 2025.

Introduction

You’ve probably noticed it—more homes on the market, prices adjusting, and buyers gaining leverage. The Dallas–Fort Worth market is shifting as we move deeper into 2025. Here's a detailed look at what’s changing, why it matters, and what it means for you.

Neighborhood Spotlights

Frisco & McKinney

These fast-growing suburbs are stabilizing. Homes here now often linger a bit longer, giving buyers a chance to negotiate.

Dallas & Tarrant Counties

These core markets are leaning toward balance: 4–6 months of inventory. Dallas experienced flat pricing month-over-month, while Tarrant saw a slight uptick (CandysDirt.com).

Outlying Counties (Collin, Denton, Kaufman, Rockwall, Hunt)

These areas entered buyer’s market territory. Inventory in Denton rose 63%, Collin’s median prices dipped 3.7%, and Hunt County saw over six months of supply (CandysDirt.com).

Local Market Trends (2025 Update)

  • Inventory surge: Active listings in DFW jumped over 55% year-over-year—from about 23k to over 35k by May 2025 .

  • Prices cooling: Median home prices in DFW are down ~2.2% year-over-year, with Dallas alone dipping about 4.6% .

  • Sales volume: Closed transactions are down by 2–6% compared to last year .

  • Days on market: Homes now sit about 11–28 days longer, depending on the county .

  • Mortgage rates: Averaging 6.8%–7%, offering a bit more breathing room after all-time lows .

What’s Driving the Shift?

  • High mortgage rates (around 7%) are discouraging some buyers .

  • Rising inventory: Metro listings are now 55% above last year, easing seller conditions .

  • Economic fundamentals: DFW remains strong—pop growth, job creation, Fortune 500 presence lighting up the local economy (New York Post).

  • Niche buyers’ markets: Suburban and rural counties now offer negotiating power with longer days on market and higher inventories .

Cost Breakdown: What Buyers and Sellers Should Know

  • Negotiation timing: More inventory = more wiggle room. Sellers may need to consider incentives or price adjustments.

  • Professional help: Work with local agents or lenders to lock in terms and pre-approvals fast—especially before rates change.

  • Financing options: Low-rate buyers may grab opportunities; sellers holding low-rate mortgages often hesitate to sell—impacting supply.

Builder & Community Insights

  • Spec homes piling up: Builders are offering incentives to move inventory. Expect lot premiums or upgrades thrown in .

  • New Construction hotspots: Suburbs like Prosper, Celina, Wylie, and Ferris are growing thanks to affordable land and energy/infrastructure projects .

  • Workforce and demand: Investments in tech and AI centers are fueling demand in certain corridors—opening opportunities for build-to-rent and new communities .

Financing & Incentives

  • Mortgage options: With rates at ~6.8%, explore 15-, 20-year fixed or adjustable-rate loans before any Fed decisions.

  • New home incentives: Builders often offer perks like mortgage buydowns or closing-cost credits.

  • Rental route: Some sellers are retaining properties as rentals instead of adjusting prices immediately—but renters face 26% rent hikes year-over-year .

  • Get pre‑approved now: Get Pre‑Approved

  • Construction rebate? Check trending builder deals: New Construction Rebate Program

Conclusion

The 2025 shift in DFW means more choices for buyers, negotiation power, and thoughtful planning. Sellers need to adapt—pricing smart and considering incentives. Whether buying, selling, or building, be ready and informed.

Download the Lone Star Living App now. It helps you browse listings, get pre-approved, track new inventory, and connect with top agents. Let’s make your next move in DFW with confidence.

You're Always Home With Refind Realty!

FAQs (5–7)

  1. Is it still a seller’s market in DFW?
    Not right now. With inventory up 55% and slower sales, it's shifting toward balanced or buyer-friendly in several counties .

  2. Are home prices dropping in Dallas?
    Yes. Dallas saw ~4.6% decline year-over-year; metro-wide, the drop is ~2.2% (New York Post).

  3. How long are homes staying on the market?
    In DFW, average days on market rose by 11–28 days, depending on the area .

  4. Should buyers wait for rates to drop?
    Higher rates are discouraging some buyers, but inventory gains mean opportunity. Consider locking in now.

  5. Are incentives available from builders?
    Yes—builders are offering discounts, upgrades, or closing-cost offsets due to slower new-home sales .

  6. Is renting a better option now?
    Rental supply is growing, but rents are up about 26%. Still, flexibility may make leasing appealing for some .

DFW buyer’s market trendsDFW market shift 2025Dallas Fort Worth housing inventory 2025Texas mortgage rates 2025DFW home price declineDFW real estate buyer advantageDallas suburbs inventory growth
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Owned and Operated by Thomas & Thomas Financial Group, LLC

Steven J. Thomas

Steven J. Thomas has been in the financial services industry for the past 19 years and started my career as a Financial Planner for American Express Financial Advisors. I entered into banking with JP Morgan Chase as personal banker in 2003 and was promoted several times up to Small Business Specialist. I earned multiple Million Dollar Club awards and was ranked in the top 5 Small Business Specialist before I branched out in 2005 to start my own Financial Management Company. I ran a successful company before family circumstances lead me to Wachovia Bank in 2008 where I worked as a Senior Financial Specialist. As a Sr. Financial Specialist; I was responsible for the P & L and revenue growth of my banking center. The elimination of my role thru a bank merger lead me to BBVA Compass. I have held various leadership roles at BBVA Compass including Personal Relationship Manager, Branch Retail Executive, Workplace Solutions VP, and his current role as a Retail Manager. As the Regional Workplace Solutions VP, I was responsible for the strategic, tactical, and execution of Partnership Banking relationships, promotion and activity with corporate and non-profit companies in my footprint. I was responsible for the acquisition production for three districts, which includes 51 banking centers and over 300 employees. In May of 2014, I joined the team at Refind Realty and became one of the managing partners in mid-2015.

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I used this realtor and it was a great experience. He was patient and very helpful with our journey. He also helped us find a great lender with little hassle on the process, also got us approved for well above the market of our original home so we were able to get more house with a lower mortgage rate. So to anyone who is interested in buying a home take my advice give Steven a call. It’s worth it 😁

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Steve was absolutely amazing! Everything was easy! Very professional in all aspects. Punctual, responsive, and diligent. He goes above and beyond to ensure you get to see as many homes as you’d like no matter the location. Not only was he knowledgeable about home buying, he also has a resourceful network for new home owner needs. I recommend Refind Realty to everyone!

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Ask Us Anything

Frequently Asked Questions

Why do you need a Realtor?

When buying or selling a home, there are so many options…which can also present a lot of obstacles. Laws change, forms change, and practices change all the time in the real estate industry. Because it’s our job to stay on top of those things, hiring a realtor reduces risk, and can also save you a lot of money in the long run.

When you work with me as your Realtor, you’re getting an expert who knows the area; knows how to skillfully guide your experience as a seller or buyer; can easily spot the difference between a good deal and a great deal. My job is to translate your dream into a real estate reality, and I work hard to earn and keep my business. This also means earning your trust: When you work with me, you’ll be working with a realtor who looks out for your best interests and is invested in your goals.

Which loan should you choose?

There are two different types of loans conventional loans and government-backed loans. The main difference is who insures these loans:

1 - Government-backed loans (FHA, VA and USDA):

(a) - Are, unsurprisingly, backed by the government.

(b) - Include FHA loans, VA loans, and USDA loans.

(c) - Make up less than 40 percent of the home loans generated in the U.S. each year.

2 - Conventional loans

(a) - Are not backed by the government.

(b) - Include conforming and non-conforming loans (such as jumbo loans).

(c) - Make up more than 60 percent of the loans generated in the U.S. each year.

What is the difference between FHA, VA and USDA loans?

1 - FHA LOANS:

FHA loans, which are insured by the Federal Housing Administration, are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment of as little as 3.5 percent and a credit score as low as 580.

FHA loans are often called “helper loans,” because they give a leg up to potential borrowers who may not be able to secure one otherwise. For this reason, FHA loans have maximum lending limits, which are determined based on housing values for the county where the for-sale home is located.

Because the agency is taking on more risk by insuring FHA loans, the borrower is expected to pay mortgage insurance both at the time of closing and on a monthly basis, and the property must be owner-occupied.

2 - VA LOANS:

VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100 percent financing, meaning VA borrowers are not required to make a down payment.

Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.

3 - USDA LOANS:

You may also hear about USDA loans, which are backed by the United States Department of Agriculture mortgage program. USDA loans are intended to support homeowners who purchase homes in rural and some suburban areas. USDA loans do not require a down payment and may offer lower interest rates; borrowers may have to pay a small mortgage insurance premium in order to offset the lender’s risk.

What’s a conventional loan? Understanding what it means to be conforming and non-conforming

Buyers who have a more established credit history and a larger down payment may prefer to apply for a conventional loan. These loans may offer a lower interest rate and only require the home buyer to purchase monthly mortgage insurance while the loan-to-value ratio is above a certain percentage, so a conventional loan borrower can typically save money in the long run.

Conventional loans are divided into two types: Conforming loans and non-conforming loans.

1 - CONFORMING LOANS:

Conforming loans are those that meet (or conform to) predetermined standards set by Fannie Mae and Freddie Mac — two government-sponsored institutions that buy and sell mortgages on the secondary market. By selling the loans to "Fannie and Freddie," lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.

The main standard for conforming loans is that the amount borrowed must be under a certain amount; in Alaska, a single-family home loan must be under $647,200 in order to be considered conforming.

Properties with more than one unit have higher limits.

2 - NON-CONFORMING (JUMBO) LOANS:

But what happens if a borrower wants to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they would have to apply for a “jumbo loan,” which is the most common type of non-conforming loan.

Because the lender cannot resell the jumbo loan (or any non-conforming loan) to Freddie Mac or Fannie Mae, jumbo loans are considered to be riskier than a conforming loan. To protect against this risk, the bank will typically require a higher down payment; the interest rate on a jumbo loan may also be higher than if the same borrower applied for a conforming loan.

What kind of rate should you choose?

Rate types: Fixed-rate vs. adjustable-rate mortgages.

In addition to the loan type you choose, you’ll also have to determine if you want a fixed-rate mortgage or an adjustable-rate mortgage (ARM). A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.

An adjustable-rate mortgage typically offers an initial introductory period with a low-interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate on an ARM can sometimes be locked in for different periods, such as one, three, five, seven, or 10 years. Once the introductory period is over, the interest rate typically readjusts annually.

Office 1229 E. Pleasant Run Ste 224, DeSoto TX 75115

Call :(713) 505-2280

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Owned and Operated by Thomas & Thomas Financial Group, LLC