How’s the Dallas real estate market wrapping up 2025, and what’s ahead for 2026 if you’re looking to sell your home? The Dallas market cooled in 2025 with average home values dropping 4.6% to $303,486 and inventory rising to favor buyers. If you’re planning to sell your home now, focus on competitive pricing and staging to stand out. For 2026, expect an 11% jump in existing home sales as rates ease slightly, making it a stronger time to list.
You’ve probably felt the shifts in Dallas real estate this year—slower sales, more choices for buyers, and questions about timing your move. As we close out 2025, this recap breaks down what happened and shares straightforward predictions for 2026. Whether you’re prepping to sell your condo in Uptown or eyeing a flip in McKinney, these insights help you decide next steps.
2025 Dallas Market Recap: A Shift to Buyer’s Territory
Dallas started 2025 with carryover momentum from prior years, but affordability pressures and rising inventory flipped the script by mid-year. Homeowners who listed early caught higher prices, but later sellers faced longer days on market. Here’s the data you need to know.
Home Prices and Values: Cooling but Stable
Average home values in Dallas dipped 4.6% year-over-year to $303,486 by late 2025. The median sale price hovered around $399,000 in May, down 2.21% from 2024. In the broader DFW area, some forecasts pointed to a 10-20% correction in spots with overbuilding, but Dallas proper held steadier thanks to job growth in tech and finance.
If you’re selling your home, this means pricing right from the start. Overpriced listings sat for 42 days on average, up from 2024.
Sales Volume: Up Slightly, But Uneven
Existing home sales rose 6% overall in 2025, per local reports. New construction bucked the trend with a 10% increase, driven by builders in suburbs like Frisco and Prosper. Nationally, September sales climbed 1.5%, with the South—including Dallas—leading the pack.
Buyers hesitated early due to rates near 6.5%, but more listings eased competition. For sellers, this meant staging and virtual tours became key.
Inventory and Foreclosures: More Options Emerge
Inventory swelled, turning Dallas into a buyer’s market by September. Foreclosures ticked up slightly in Q4, sparking crash fears, but experts call it a healthy correction, not a collapse. Collin County sales value hit $995 million in June alone, showing demand persists despite the glut.
Neighborhood trends varied. McKinney topped U.S. housing markets for 2025, with values up 3% thanks to family-friendly vibes and quick commutes to downtown. Uptown and Preston Hollow saw luxury demand hold firm, with low turnover keeping prices elevated. If your home’s in a transitional spot like East Dallas, expect more interest from first-time buyers.
Key Local Trends Shaping Dallas Real Estate in 2025
Dallas isn’t just numbers—it’s neighborhoods buzzing with change. From new builds near the Trinity River to tech hubs in The Cedars, 2025 highlighted growth amid challenges.
- Suburban Boom: Frisco, Prosper, and Little Elm led new construction, with Perry Homes noting these as top picks for 2025 buyers seeking space without the city grind. Sell your home here? Highlight proximity to Toyota’s HQ or the new PGA Frisco golf course.
- Downtown Revitalization: The new convention center district broke ground, aiming for walkable urban living by 2027. Nearby, Kalahari Resorts’ $950 million waterpark-resort in Grand Prairie draws families, boosting nearby home values by 5%.
- Rental Shifts: With sales softening, rentals tightened—Class B units averaged $1,500 monthly rents by year-end. Investors selling homes to flip into rentals found quick exits.
These developments tie into broader trends like remote work drawing folks from California. But remember, Fair Housing Act rules apply—no steering based on protected classes. Always consult pros for your situation.
2026? Buckle Up—It’s About to Get Good Again
I’m not just blowing sunshine here. Dallas-Fort Worth just snagged the #1 spot in PwC’s Emerging Trends in Real Estate report for 2026. That’s right—#1 in the entire country. Here’s what I’m seeing:
- Existing home sales jumping ~11%
- Rates sliding toward 5.5–6% (buyers can finally qualify for more than a treehouse)
- Prices either flat to +2% in the core, or +4% in the hot suburbs (McKinney, Frisco, Prosper—y’all are still crushing it)
- Spring 2026 could feel downright frisky again
In plain English: more buyers, less inventory, and your equity is about to start growing instead of just sitting there looking pretty.
2026 Predictions: Rebound on the Horizon
Dallas-Fort Worth snagged the #1 spot for real estate potential in 2026. Why? Diverse economy, affordability, and 55% of pros eyeing strong profits.
- Sales Surge: Existing homes up 11%, new builds +5%. Rates may dip to 5.5-6%, per Reddit locals and forecasts.
- Prices Steady: Flat or +2% in core Dallas, with suburbs like McKinney gaining 4%. Inventory eases slightly, but buyers’ market lingers in overbuilt zones.
- Hot Spots: Downtown’s convention push and Frisco’s sports anchors fuel demand. Watch for insurance hikes impacting coastal DFW, but Dallas core stays resilient.
For sellers, 2026 looks brighter—list early spring for peak activity predicts 15% more luxury moves, leveraging their network for top dollar.
| Metric | 2025 Actual | 2026 Prediction | Impact on Selling Your Home |
|---|---|---|---|
| Median Price | $399,000 (-2.21%) | +1-2% | Price realistically to avoid stalls |
| Existing Sales | +6% | +11% | More buyers mean quicker offers |
| Inventory | High (Buyer’s Market) | Moderating | Stand out with updates |
| Rates | ~6.5% | 5.5-6% | Easier financing boosts showings |
So… Sell Now or Wait?
Depends on your vibe.
→ Selling right now (Dec/Jan)? Let’s price it sharp, make it look like it belongs on Netflix’s next design show, and get you closed before the Super Bowl. I’ve got tricks up my sleeve to make your house the one buyers fight over even in a slower season.
→ Can you wait 60–90 days? Early 2026 is looking delicious. That’s when the flood of “new year, new house” buyers shows up with fresh pre-approvals and FOMO in their eyes.
Either way, I’m obsessed with getting my clients the absolute max the market will pay—whether that’s today’s number or waiting for tomorrow’s bigger one.
Let’s Make Your Move the Easiest (and Most Profitable) One Yet
Drop me a text or call and I’ll shoot over a hyper-local, zero-BS breakdown of exactly what your home is worth right this second—and what it could be worth by cherry-blossom season.
No sales pitch, no pressure, just real talk from someone who lives, breathes, and celebrates every Dallas closing like it’s my own.
Can’t wait to help you crush it!
Selden Tual
REALTOR®
m: 512.944.3121
w: SeldenTual.com
e: [email protected]