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Dallas-Fort Worth Real Estate Market Trends: February 2025 Analysis

Updated: Mar 24

The Dallas-Fort Worth (DFW) real estate market is a dynamic landscape, and understanding the latest trends is crucial for buyers, sellers, and investors. This report dives into the key insights from February 2025, analyzing new construction, resale, and lease activity.


New Construction Market: More Choices, Shifting Prices

If you're looking to buy a brand-new home in DFW, there's good news! The number of active listings for new construction has increased significantly. Specifically, active listings are up 19.5% compared to last year.  This means buyers have more choices and potentially more negotiating power.   


However, the surge in inventory is occurring alongside a decrease in prices. The average price of a newly built home has decreased to around $502,790.  This represents a change from previous trends where new home prices consistently climbed.   


Key New Construction Market Trends:

  • Increased Inventory: More new homes are available (active listings up 19.5% year-over-year).    

  • Price Adjustments: Average prices are decreasing, with the current average around $502,790.    

  • Slower Sales: Fewer new construction homes were sold this February compared to last year.    

  • Balanced Market: The market is relatively balanced, with about 4.8 months' worth of new construction inventory.    

  • Mortgage Rate Impact: Mortgage rates are a factor, currently around 6.63%, which can affect affordability for buyers.    

  • Strong Seller Position: Sellers are still getting close to their asking price, with new homes selling for nearly 95% of the original list price.    




Resale Market: Inventory Surge and Price Stabilization

The DFW resale market is also experiencing significant shifts. A key trend is the dramatic increase in active listings, providing buyers with a wealth of options. Active listings are up by a substantial 40.5% compared to last year.    


Despite this surge in available homes, average prices have only seen modest increases. The average list price is slightly higher, at $531,240, and the average sold price has also increased to $457,500.    


Key Resale Market Trends:

  • Inventory Explosion: Available homes have increased significantly (up 40.5% year-over-year).    

  • Stable Prices: Average list prices are up slightly (0.6%), and average sold prices are also up (2.7%).    

  • Sales Slowdown: Fewer resale homes were sold this February compared to last year (down 14.5%).    

  • Balanced Market with Shifting Dynamics: The market is moving towards balanced, with 4.69 months' worth of inventory, but the increasing inventory could shift it further.    

  • Mortgage Rate Influence: Mortgage rates are at 6.63%, impacting affordability and contributing to slower sales.    

  • Increased Days on Market: Homes are taking longer to sell, with an average of 74 days on market.    

  • Sellers Holding Firm: Sellers are generally receiving close to their asking price, with resale homes selling for 94% of the original list price.    



Rental Market: More Options, Softer Demand

The DFW residential lease market is also showing interesting trends. Renters will be pleased to know that there's been a notable increase in available rental listings. Active listings are up by 12.8%    


However, the number of new listings is down, and the average lease price is relatively stable.


Key Rental Market Trends:

  • Increased Rental Inventory: Available rental listings are up (12.8% year-over-year).   

  • Stable Rental Prices: Average lease prices are relatively stable.    

  • Fewer Leases Signed: Fewer leases were signed this period compared to last year.    

  • Balanced Market with Growing Inventory: The rental market is leaning towards balanced, but the increasing inventory could shift it further.    

  • Increased Days on Market: Rentals are taking longer to lease, with an average of 56 days on market.    

  • Landlords Holding Firm: Landlords are generally receiving close to their asking price.






Overall Market Outlook

The DFW real estate market presents a mixed picture. Inventory is generally up across new construction, resale, and rental markets, offering more options. However, sales activity is showing signs of slowing, and increased days on market suggest a softening in demand. Mortgage rates continue to play a significant role in affordability and market dynamics.



Important Note:

This analysis is based on data from NTREIS (North Texas Real Estate Information Systems) as of February 28, 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.    

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