DFW Monthly Market Update – August 2025

Median Sales Price $387,599 ▼ 2.3% YoY

Prices are easing slightly as affordability pressures and more options temper bidding.

Closed Sales 8,246 ▲ 1.6% YoY

Demand is still present—well-priced homes continue to reach the closing table.

Active Listings 36,404 ▲ 22.4% YoY

More choices for buyers; sellers must compete on price, presentation, and condition.

Months of Inventory 4.7 ↑ vs last year

Approaching a more balanced market (≈5–6 months). Leverage is normalizing.

Median Days on Market 58 +8 days YoY

Homes generally take longer to sell—pricing strategy and marketing are key.

Sale-to-Original List 94.4% —

Negotiation room exists; list accurately to minimize price reductions.

DFW Housing Report Infographic, August 2025 — Source: Texas REALTORS®, NTREIS – Dallas–Fort Worth–Arlington MSA Housing Report, August 2025

📈 What This Means for DFW Homeowners and Buyers

With active listings up 22.4% and months of inventory at 4.7, DFW is rebalancing from a pure seller’s market toward a more typical pace. The median price of $387,599 (▼ 2.3% YoY) suggests buyers have a bit more negotiating room, yet closed sales up 1.6% confirms demand hasn’t disappeared—well-presented homes still move. Expect longer marketing times (58 days) and tighter spreads to list price (94.4%).

For sellers: focus on market-correct pricing, standout presentation, and timely improvements. For buyers: more selection and steadier pricing create opportunities—especially if you’re prepared with strong financing and flexible timing.

Source: MLS data via NTREIS (Dallas–Fort Worth–Arlington MSA), August 2025. Data deemed reliable but not guaranteed.

Breaking News (Sept 12, 2025):Mortgage rates have plunged to roughly ~6.35%, the largest weekly drop this year, and analysts now expect three Fed cuts over the coming meetings. Early signs show purchase applications up sharply year-over-year, as lower rates improve monthly payments and re-activate Buyer demand.
A portion of this drop may already reflect markets pricing in Fed action—don’t assume rates will automatically fall further after a cut.

Interest Rates & Mortgage Costs

Rates remain elevated versus 2020–21, but the recent drop has improved affordability. A ~1% change in mortgage rate can shift principal & interest by ~10%. With markets anticipating cuts, some movement gets priced in ahead of time.

DFW Takeaway: Rate moves directly affect buyer qualification and demand. Sellers benefit from pricing realistically now; buyers should be ready to lock favorable rates quickly.

Inflation & Cost of Living

Inflation has cooled from its peak but remains above the Fed’s 2% target. Elevated everyday costs keep households focused on the monthly payment, which affects price sensitivity and time on market.

Inflation trend chart — Inflation above target influences mortgage rates and real housing costs.

Jobs, Confidence & Buyer Activity

A steady labor market supports housing demand, while signs of cooling can make buyers cautious. Confidence shows up in showing activity, time on market, and the gap between list and sold prices.

Unemployment trend chart, September 2025 — Unemployment has edged higher in recent months, signaling a cooling labor market that could influence both Fed policy and buyer confidence in housing.

Job growth trend chart, Sept 2025 — Job strength underpins buyer willingness to transact.

Construction Costs, Tariffs & New-Home Pricing

Materials and labor costs (influenced by tariffs and supply chains) affect new construction pricing. Builders often respond with incentives—rate buydowns, credits, or upgrades—creating competition for resale listings.

Builder incentives chart, September 2025 — Many builders are offering incentives such as mortgage rate buydowns, closing cost credits, and upgrades to attract buyers in today’s higher-rate environment.

Builder price cuts chart, September 2025 — Alongside incentives, some builders are reducing list prices to stay competitive with resale homes, especially in markets where inventory is climbing.

Price Stabilization & Listing Trends

With more inventory on the market, list prices tend to flatten and pricing dispersion widens by neighborhood and condition. That’s why the $/sf trend can differ from the average price in any given area—mix-shift matters.

List price trends chart, September 2025 — Listing prices have flattened as inventory builds, showing that sellers are adjusting expectations and pricing more competitively to attract buyers.

DFW Takeaway: Pair the macro backdrop with your local data: inventory has risen and days on market lengthened. For sellers, this rewards accurate pricing and standout presentation. For buyers, it means more choice and room to negotiate.

Sources: RealEstateNews.com, Freddie Mac PMMS, MarketWatch, Reuters, and Keeping Current Matters (Monthly Market Report, Sept 2025).