Dallas, TX Housing Market Report

The Dallas real estate market as of December 2025 has transitioned into a period of stabilization following a year of modest price corrections. With a median home value of $300,462, the market has seen a 4.1% decrease year-over-year. However, the most recent six-month data suggests that prices have found a floor, showing a slight upward tick from October through December. This shift indicates that the aggressive downward pressure on valuations has eased, moving the market toward a more balanced environment that slightly favors buyers due to increased inventory and longer holding periods.

Inventory levels have surged by nearly 8% over the past year, with 29,930 active listings currently available across the Dallas-Fort Worth-Arlington metro area. This influx of supply, combined with an average of 82 days on market—a 12-day increase from last year—gives buyers significantly more leverage during negotiations. The sale-to-list ratio of 0.98 further confirms this trend, suggesting that most sellers are accepting offers roughly 2% below their initial asking price. Sellers must now be more strategic with pricing and property condition to stand out in a more crowded field.

Looking ahead, the Dallas market appears to be entering a phase of slow, sustainable growth. While the rental market remains flat with a marginal 0.14% increase, the stability in home prices over the last quarter suggests that the local economy continues to support housing demand despite higher inventory levels. For buyers, the current window offers a rare combination of stable prices and high selection. For sellers, the key to a successful transaction in 2026 will be patience and flexibility, as the days of rapid-fire bidding wars have been replaced by a more methodical and price-sensitive pace.