August 2025 Home Sales Improve in DFW
Over the past few months, we have seen a year-over-year decline in home prices across the DFW metroplex, but sales are starting to improve.
Key Takeaways
- Home sales continue to improve in the DFW metroplex.
- Despite the increase in sales, prices have continued to decline month-over-month and year-over-year.
- Inventory has declined but remains elevated.
Introduction
The Dallas / Fort Worth housing market continued to show stability in August 2025. For the fifth straight month, we saw prices decline slightly on a month-over-month as well as year-over-year basis, but sales volume picked up, and inventory - though relatively high - declined.
To be honest, this is sort of good news/bad news in a mixed bag. It all depends on your context for viewing the housing market. For existing homeowners, it's not such great news, but for those seeking to get in the market, it is relatively good news. Let's take a look at the details...
The Numbers
First, the numbers.
For the month of August, the Case-Shiller Index showed a year-over-year price decline of -1.19% for homes in the Dallas / Fort Worth metroplex. You may recall that this is similar to the year-over-year decline we saw in July. Per the Texas A&M Real Estate Research Center, the median price of homes in DFW was $387,900 in August.
On a month-over-month basis, DFW home prices were down -0.47% (non seasonally-adjusted) in August. This was the second consecutive month of month-over-month declines for the metroplex.
Nationally speaking, home prices rose 1.51% year-over-year according to Case-Shiller, although there were quite a few metro areas that saw price declines just like DFW. Month-over-month, prices were down -0.30% in August.
In spite of the price decline in DFW, home sales actually improved in August. 8167 homes traded hands, and that is slightly higher than August of 2024. This means that buyers appear to be slowly returning to the market after several years of mostly declining volume.
Additionally, months supply - a closely watched barometer of demand - also improved in August according to the Texas A&M Real Estate Research Center.
Meaning Behind the Numbers
I think it's important to keep in mind that the big picture here is a stable real estate market. The price decline is negligible, homes are still selling (albeit at a slower pace), and inventory remains higher than it was during the crazy years of 2020-2022 but not exorbitantly high on a historical basis. One common question I often get is "Do I think the real estate market is crashing?" The answer to that continues to be a resounding "No." We are nowhere close to experiencing a market crash.
I think people got used to having a real estate market in which prices were appreciating by 25%-30% per year. Now that we've had a few years of a flat market, it feels worse than it actually is. And this brings me to my point about the good and bad of the current market.
Because prices accelerated so much during 2020-2022, homeowners saw their real net worth improve drastically during that time period. Today, with prices remaining flat, most people's net worth is not going up, and that can feel deflating, especially considering the fact that inflation has continued to stubbornly rise.
But the news isn't all bad. For those seeking to enter the housing market, this is the best opportunity many have had in a long time. As I've stated, prices have remained stable for several years now. But in addition to that, mortgage rates have come down some, and this means it's actually a little less expensive for homebuyers right now.
I want to keep things in context. Mortgage rates are nowhere near where they were a few years ago when the Fed was purchasing all the mortgage-backed securities. But now that rates have come back down to the 6% range, many buyers have an opportunity they simply didn't have when rates were at 7%.
Conclusion
With prices and mortgage rates being slightly lower, home-buying has improved over the past few months in Dallas / Fort Worth. Many would-be buyers now have the opportunity to get into a house for less than they would have been able to a year ago. Additionally, higher inventory means that these buyers have more possibilities to choose from in a new home.
While prices are a little lower, sales volume is showing signs of picking up, and this means the overall market is in good condition. The DFW metroplex continues to be a magnet for business relocations and coastal residents seeking less expensive living conditions. As long as this continues, the DFW real estate market will be strong.