DFW Market Report: A Review of May 2025 Housing Trends

The Dallas-Fort Worth real estate market is always a dynamic place, and May 2025 is proving to be no exception. Let's dive into the key trends across new construction, resale, and rental sectors to get a clear picture of what's happening.

New Construction Market: Inventory Up, Prices Adjusting

If you're in the market for a brand-new home in DFW, the number of active listings for new construction has increased compared to last year. Specifically, active listings are up by 12.6% compared to 2024, though they have seen a slight dip of 2.1% from last month. This indicates a healthier inventory for buyers.

However, there are shifts in pricing. The average sales price of a newly built home is now $453.70K.

Key New Construction Market Trends:

• Increased Yearly Inventory: More new homes are available, with active listings up 12.6% year-over-year.

• Price Softening: The average sales price is $453.70K, which is down 3.7% from last month and 3.8% from last year. The average list price is $545.21K.

• Shifting Sales: Closed sales increased by 9.0% from last month but have declined by 1.4% from last year.

• Balanced Market: The market is relatively balanced, with 4.61 months' worth of supply.

• Sellers Negotiating: New homes are selling for about 94.1% of the original list price.

• Time on Market: Properties are staying on the market for an average of 92 days.

Resale Market: Inventory Surge and Price Trends

The DFW resale market is experiencing dramatic shifts, with a significant increase in available homes. Active listings have jumped by a striking 41.6% compared to last year and 12.3% compared to last month. For buyers, this surge means a much wider selection of properties.

Average prices are showing slight year-over-year increases. The average list price is $543.96K, and the average sold price is $478.50K.

Key Resale Market Trends:

• Inventory Explosion: The number of available homes has increased significantly, up 41.6% year-over-year and 12.3% month-over-month.

• Mixed Price Trends: The average list price is $543.96K, down 3.6% from last month but up 0.2% from last year. The average sale price increased to $478.50K, up 2.1% monthly and 0.8% yearly.

• Monthly Sales Increase, Annual Dip: At 6,402, closed sales rose by 5.5% from last month but are down 12.5% from May of last year.

• Shift Towards Buyer's Market: The market is leaning towards balanced, with a 6.42-month supply of inventory.

• Days on Market: Resale homes are taking an average of 54 days to sell.

• Sellers Holding Firm: Sellers are receiving close to their asking price, with homes selling for 95.2% of the original list price.

Rental Market: More Options for Renters

The DFW residential lease market is also showing notable developments. Renters have more options, as active listings are up 10.9% compared to last year and 3.9% compared to last month. The average lease price is around $2,400.

Key Rental Market Trends:

• Growing Inventory: Active listings are at 9,494, showing a 3.9% increase from last month and a 10.9% increase from last year.

• Mixed Leasing Activity: Closed leases totaled 4,307, which is a slight 0.6% decrease from last month but a 4.9% increase from last year.

• Stable Average Lease Prices: The average closed lease price is $2.40K, showing a modest 1.1% increase from both last month and last year.

• Tight Supply: There is a 2.76-month supply of rental properties.

• Leasing Time: Properties are taking an average of 43 days to lease.

• Leasing Close to Asking Price: Properties are being leased at 97.6% of their original listed price.

  
  

Overall Market Outlook

The DFW real estate market in May 2025 presents a mixed but advantageous picture for buyers. Increased inventory across both new construction and resale markets provides more choices and negotiating power. A significant factor for buyers is the average mortgage rate, which at 6.83%, is down 1.4% from last year.

Price adjustments in the new construction sector and a substantial inventory boom in the resale market signal a shift in dynamics. The rental market remains robust with growing inventory and stable pricing. For anyone looking to enter the DFW real estate market, staying informed and strategic is essential.

Important Note:

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