Murphy, TX Housing Market Update

Murphy, TX Housing Market Update – March 2026

Reporting Period: Feb 1–Feb 28, 2026 • Data via NTREIS

Murphy is a tight-knit Collin County community — well-regarded schools, established neighborhoods, and a price profile that attracts families upgrading from entry-level suburbs. February's data is thin, and the volume drop warrants a careful read rather than a reflexive reaction. Eight transactions in a single month can produce headline numbers that look alarming when they're really just the natural volatility of a small market.

PRICES
Murphy's February median came in at $579,000 — a 5.1% decline from a year ago — and price per square foot landed at $182.43, down 5.0%. Both figures are influenced by the eight homes that happened to close in February, and both deserve the small-sample caveat. What the price distribution confirms is that Murphy operates almost exclusively in the $500–$749k range: 87.5% of February closings fell there, with the remaining 12.5% in the $400–$499k band. No sales occurred below $400k or above $750k. That concentration in a single tier means the median is less susceptible to compositional distortion than some other markets — which lends modest credibility to the modest year-over-year softening.

SALES ACTIVITY
Eight closed sales is half the volume of February 2025's 16 — a 50% decline that sounds dramatic but translates to a difference of just eight transactions. In a community where monthly closings routinely fluctuate between single digits and the low twenties, one slow February doesn't establish a trend. What's more instructive is the pace data: homes averaged 57 days on market — up 24 days year over year — while total transaction time came in at 75 days, up 14 from last February. Days to close actually improved sharply to 18 days, down 10 from a year ago, confirming that under-contract transactions are moving to close quickly once a buyer commits.

INVENTORY
Active listings jumped to 43 — a 34.4% increase from 32 a year ago — and months of inventory rose to 3.4, up a full month year over year. That inventory expansion is the most meaningful structural shift in Murphy's February data. More listings relative to a smaller buyer pool translates directly into more buyer leverage and a longer time to contract. At 3.4 months, Murphy sits in balanced territory, but the trend line is moving toward buyers — sellers who priced optimistically in early 2025 may find the current environment less forgiving.

MARKET BALANCE
The close-to-list ratio of 94.1% — down from 97.2% in early 2024 — tells the market balance story cleanly. Buyers have recovered roughly three percentage points of negotiating room over the past two years. In Murphy's $500k–$750k price range, that translates to real money. The combination of rising inventory, extended days on market, and a declining close-to-list ratio all point in the same direction: sellers still transact, but the environment demands more realistic pricing and more patience than it did twelve months ago.

2026 Murphy Housing Market Forecast

Murphy's spring 2026 outlook hinges on whether the inventory expansion seen in February continues or moderates as seasonal demand builds. With 43 active listings and only 8 closings in February, the absorption rate suggests the market could carry elevated supply through at least mid-year without a meaningful demand catalyst.

If mortgage rates ease in the second half of 2026, Murphy's $500k–$750k price tier is well-positioned to attract pent-up demand from buyers who've been waiting for improved affordability. The community's Collin County fundamentals — schools, infrastructure, established neighborhoods — provide durable demand support that should limit any meaningful price deterioration.

Given the small monthly transaction volume, multi-month trends are a more reliable guide to Murphy's direction than any single month's data. Watch the spring closings for confirmation of whether February's softness was seasonal or structural.

Source: NTREIS MLS (Feb 1–Feb 28, 2026) with February 2025 comparison metrics from the Texas REALTORS® Data Relevance Project, in partnership with the Real Estate Center at Texas A&M University.

Murphy Real Estate Overview

A Quiet Collin County Gem with Room to Live and Easy Access to Everything

About Murphy, TX

Murphy is one of the most underappreciated cities in Collin County — a small, tight-knit community of roughly 22,000 residents tucked between Wylie, Sachse, and Plano along the SH-544 corridor. It lacks the name recognition of Allen or the rapid growth narrative of Wylie, but for buyers who discover it, Murphy often checks every box: good schools, well-maintained neighborhoods, reasonable lot sizes, and a price point that frequently offers more value per square foot than comparable cities to the west.

Murphy incorporated in the 1990s and grew steadily through the 2000s, developing a cohesive suburban character with a predominantly residential focus. There's very little commercial clutter — Murphy doesn't have a large retail core — which means neighborhoods feel quieter and less congested than in more commercially dense cities nearby. Residents typically do their shopping in Wylie, Sachse, or Plano, all within a short drive.

What sets Murphy apart for buyers is its combination of Plano ISD schools, competitive pricing relative to Plano itself, and a genuinely neighborhood-oriented feel that's hard to manufacture in newer, faster-growing communities.

Homes for Sale in Murphy, TX

Murphy's housing stock is largely composed of established single-family homes built between the mid-1990s and early 2010s, with some newer construction filling in remaining parcels. Lots in Murphy tend to be more generous than in Plano or Richardson, and the neighborhoods are generally well-established with mature trees and landscaping that newer developments can't replicate.

Property types include:

Established single-family homes in mature neighborhoods, typically offering three to five bedrooms, two-car garages, and lot sizes that allow for meaningful outdoor living space

Move-up homes in the $400k–$600k range, well-suited for families upgrading from starter homes in surrounding cities who want to stay within Plano ISD

Newer construction on remaining lots and infill parcels, where builders continue to bring updated floor plans and finishes at price points that remain competitive with the broader Collin County market

Custom and semi-custom homes in select communities, for buyers seeking more architectural distinction than standard production builds provide

The majority of Murphy's resale activity concentrates in the $380k–$580k range — a sweet spot that attracts buyers who want Collin County quality and Plano ISD schools without paying Plano prices.

Why Buyers Are Choosing Murphy

Murphy doesn't make headlines the way Frisco or McKinney do, but that's part of its appeal. For buyers who want a solid, stable community without the congestion and price premium that comes with higher-profile Collin County cities, Murphy delivers consistently.

Top reasons buyers are making the move:

Plano ISD schools, including access to Plano East Senior High School and its feeder campuses — one of the most significant factors driving demand in Murphy and keeping resale values stable over time

Competitive pricing relative to Plano, where the same square footage and school access often costs significantly more — Murphy gives buyers more house for their budget without sacrificing the things that matter most

Low commercial density and a quiet residential character, with less traffic, less noise, and more of the neighborhood feel that buyers moving from denser areas specifically seek out

Proximity to employment corridors in Plano, Richardson, and Garland, with SH-544 and US-75 providing reasonable commute access without requiring a Plano address

Established neighborhoods with mature landscaping and long-term homeowners who take pride in their properties — a different experience from newer communities still finding their identity

Strong long-term value retention, driven by school district access and location, that gives buyers confidence in their investment even during broader market softening

For buyers comparing Murphy to Wylie or Sachse, the school district is often the deciding factor. Plano ISD's reputation creates consistent demand that supports values independent of broader market cycles.

Your Local Experts in Murphy Real Estate

Murphy's market moves quietly — inventory is limited, well-priced homes attract serious buyers quickly, and the neighborhood nuances matter more than they might in larger, more homogeneous suburban cities. Knowing which streets, which sections of the city, and which school feeder patterns are most in demand makes a meaningful difference in both buying and selling outcomes.

Cindy and Cory Dunnican of The Dunnican Team at Coldwell Banker Apex, Realtors® have served buyers and sellers across Collin County and Northeast Dallas for more than 25 years. Whether you're buying in Murphy for the schools, the value, or the neighborhood character — or selling a home you've owned for years in a market that rewards accurate pricing — they bring the local knowledge and strategic approach to help you navigate it with confidence.