Sales Surge & Price Drops: The Dallas County Market Wrap-Up

An updated analysis of the Dallas County real estate market for December 2025 reveals a dynamic landscape characterized by a seasonal tightening of inventory but a surge in closed sales activity. With the average mortgage rate holding steady at 6.57%—a slight decrease of 0.06% year-over-year—the market continues to offer specific windows of opportunity, particularly regarding negotiation leverage. The report explicitly highlights that current conditions represent "great news for buyers".

New Construction Market: Sales Surge Despite Inventory Drop

The market for newly built homes in Dallas County saw a significant contraction in availability this month, yet buyer activity spiked. There are currently 986 active new construction listings, a substantial 21.1% decrease from November 2025 and a 16.1% decrease from the previous year.

Despite the drop in inventory, sales velocity accelerated. Closed sales jumped to 245, marking a massive 33.2% increase over the previous month, though this is still down 3.5% compared to last year.

Pricing trends offer a mixed but potentially favorable picture for buyers. While the average list price rose to $808.99K (up 1.0% from November), the average closed sales price actually dropped to $644.0K—a 9.0% decrease month-over-month and a 10.4% decrease year-over-year. This disconnect between list and sold prices suggests builders may be offering significant incentives to close deals.

Key New Construction Market Trends:

• Active Listings: 986 (Down 21.1% from Nov; Down 16.1% from last year).

  
  

• Average List Price: $808.99K (Up 1.0% from Nov; Up 13.4% from last year).

  
  

• New Listings: 227 (Down 36.9% from Nov; Down 11.7% from last year).

  
  

• Closed Sales: 245 (Up 33.2% from Nov; Down 3.5% from last year).

  
  

• Average Sold Price: $644.0K (Down 9.0% from Nov; Down 10.4% from last year).

  
  

• Percent of Original Price: 94.7% (Flat vs. Nov; Down 1.5% from last year).

  
  

Resale Market: Buyers Gain Leverage as List Prices Soften

The resale sector in Dallas County is flashing positive signals for buyers. Active inventory has tightened seasonally to 5,050 listings (down 22.0% from November), but notably, this remains 1.0% higher than the inventory levels seen in 2024.

Sellers appear to be adjusting their expectations. The average list price dropped significantly to $478.95K, a 12.1% decrease from November. However, demand remained robust with 1,292 closed sales, a strong 19.4% increase over the prior month. Consequently, the average sold price ticked up to $567.50K, a 6.0% increase from November.

Buyers are successfully negotiating below asking price. The percent of original list price received fell to 92.6%, down nearly 1% from last month, indicating that sellers are accepting offers well below their initial targets.

Key Resale Market Trends:

• Active Listings: 5,050 (Down 22.0% from Nov; Up 1.0% from last year).

  
  

• Average List Price: $478.95K (Down 12.1% from Nov; Down 7.0% from last year).

  
  

• New Listings: 1,394 (Down 31.7% from Nov; Down 6.3% from last year).

  
  

• Closed Sales: 1,292 (Up 19.4% from Nov; Down 3.8% from last year).

  
  

• Average Sold Price: $567.50K (Up 6.0% from Nov; Up 1.4% from last year).

  
  

• Percent of Original Price: 92.6% (Down 0.9% from Nov; Down 1.8% from last year).

Rental Market: Competition Heats Up

The rental market followed the broader trend of tightening supply and increased activity. Active lease listings dropped to 3,297, a 16.0% decrease from November, though supply remains 9.4% higher than the previous year.

Tenant activity was strong to close out the year, with 1,003 closed leases, representing an 18.2% increase in volume compared to November. This demand drove prices upward; the average closed lease price hit $3.10K, an 11.0% increase month-over-month and a substantial 15.3% jump compared to last year.

Key Rental Market Trends:

• Active Listings: 3,297 (Down 16.0% from Nov; Up 9.4% from last year).

  
  

• Average List Price: $2.84K (Down 0.5% from Nov).

  
  

• Closed Leases: 1,003 (Up 18.2% from Nov; Up 13.7% from last year).

  
  

• Average Sold Price: $3.10K (Up 11.0% from Nov; Up 15.3% from last year).

  
  

• Percent of Original Price: 94.6% (Down 0.8% from Nov; Down 2.5% from last year).

  
  

Overall Market Outlook

The December 2025 data paints a picture of a market concluding the year with high energy. While active listings contracted significantly across all categories—likely due to seasonal holiday patterns—sales volume surged, with closed sales up over 33% for new construction and 19% for resale.

For buyers, the environment remains opportune despite the flurry of activity. With the Percent of Original Price sitting at roughly 92.6% for resale and 94.7% for new construction, there is clear evidence that sellers are willing to negotiate. The combination of steady mortgage rates and list price adjustments, particularly in the resale sector, supports the report’s conclusion that current conditions offer "great news for buyers" heading into the new year.

Important Note:

This analysis is based on data from NTREIS (North Texas Real Estate Information Systems) as of December 31, 2025.  Market conditions can change rapidly, and this report is intended for informational purposes only. It should not be considered a guarantee of future market performance.