DFW Home Prices Were Flat in March 2025
In light of sales volume decreases, DFW home prices remain flat.
Key Takeaways
- DFW home prices increased by 0.19% year-over-year in March.
- Nationwide, prices were up 3.37%.
- Sales volume remains low in DFW and all of Texas.
March 2025 Home Prices Were Flat
While home sales continue to slide in the Dallas / Fort Worth metroplex, prices are mostly flat on a year-over-year basis. Per the S&P CoreLogic Case-Shiller Index, DFW home prices rose 0.19% in March from a year earlier. On a month-over-month basis, prices were up 0.52%.
This is a far cry from just three years ago when prices were going up nearly 30% year-over-year in DFW. The metroplex continues to experience population growth of nearly 15,000 people per month, but relatively high home prices combined with high mortgage rates are deterring potential buyers, especially first-time homebuyers.
How does this compare with the rest of the nation?
National Home Prices Rise Moderately
Though home prices in DFW were mostly flat in March, the rest of the country saw more modest gains. Nationally, the price of homes rose 3.37% in March - much more in line with longer term averages. Additionally, every other major metro area saw prices rise more than DFW except for Tampa where the prices of homes dipped -2.16% year-over-year.
I know this may be hard to believe - given that so many people have moved to DFW from both coasts - but the largest price increase in March was in New York. The New York metro area saw home prices rise by almost 8% year-over-year.
Conclusion
I think it's clear at this point that buyers in the Dallas / Fort Worth metroplex are simply struggling to afford homes. Those who would like to move find it hard to justify trading a sub-3% mortgage rate for one that's nearly 7%. And those who have never owned a home are finding it nearly impossible to qualify for even "starter homes."
At some point - and this could be years down the road - income and home prices will once again reach a nexus where buyers will come off the sidelines. I think the potential for demand is still present in the metroplex based on continuing migration trends, but the combination of high home prices relative to people's incomes and high mortgage rates is causing that demand to stay pent up. And we are now in what should be the prime buying/selling season of the year!