Amarillo, TX Housing Market Report

The Amarillo housing market entering December 2025 presents a unique landscape characterized by tightening inventory and steady, incremental value growth. With a median home value of $199,945, the market remains one of the most affordable urban centers in Texas, yet the 10.37% year-over-year decline in active listings suggests a growing scarcity of available homes. This contraction in supply has accelerated the pace of sales, with homes now spending an average of 75 days on the market, nearly a week faster than the previous year. While the sale-to-list ratio of 0.98 indicates that buyers are still successfully negotiating small discounts, the overall momentum is shifting toward a more competitive environment for purchasers.

Price trends over the last six months demonstrate a consistent upward trajectory, with values rising every month since July 2025. This steady climb, culminating in a 1.56% annual increase, reflects a stable demand base that is largely insulated from the volatility seen in larger Texas metros. The rental market is experiencing even more significant pressure, with median rents rising 5.42% to $1,212. This divergence between modest home value growth and robust rent increases suggests that Amarillo remains an attractive destination for real estate investors seeking yield, as well as first-time buyers looking to lock in housing costs against rising rental rates.

Looking ahead, the Amarillo market is positioned for continued stability with a slight lean toward sellers due to the inventory crunch. Buyers should be prepared for a faster-moving market than in years past and should expect less room for negotiation as the number of active listings remains near 1,063 units. For sellers, the current conditions are favorable for a timely sale, provided the property is priced accurately near the median. As long as inventory levels remain constrained, the steady appreciation seen in the latter half of 2025 is likely to persist into the first quarter of 2026.