Dallas-Fort Worth, TX Housing Market Forecast 2024 – 2025

In this report: A review of recent trends within the Dallas-area housing market, with a forecast extending into 2025, explained by the Home Buying Institute.

With stable home prices, slightly more inventory, and more price cuts from sellers, the Dallas-Fort Worth real estate market has become a lot friendlier toward home buyers in 2024.

The most notable trend in the DFW housing market has to do with price reductions from sellers. According to data collected by Zillow, nearly 27% of Dallas-area homes listed for sale in January of 2024 had a price reduction.

Here’s the latest forecast for the Dallas real estate market through 2024 and into 2025, with commentary from HBI’s analysts.

Dallas Home Price Trends and Forecast: 2024 – 2025

We begin with recent home-price trends and predictions for the DFW housing market, a major topic of interest for home buyers. And the news here is mostly flat. Literally.

Multiple sources show that house values in the Dallas metro area declined slightly over the past year. According to Zillow, for example, the median home value in the Dallas-Fort Worth-Arlington metropolitan area declined by -0.3% over the past year.

In February, the company wrote: “The average Dallas-Fort Worth-Arlington home value is $366,690, down 0.3% over the past year…”

That might seem like a marginal decline hardly worth mentioning. But it stands out for one important reason. Over the past year, home prices in most major U.S. cities rose slightly. The nationwide median home value, for example, rose by a little over 3% during the past year.

So the Dallas real estate market is one of a handful of metro areas that bucked the national trend and experienced a price decline over the past year.

A February housing market update from Realtor.com also showed a decline in prices for the Dallas area. According to that report, the median listing price for the DFW metroplex declined by -0.7% from January 2023 to January 2024.

Looking forward, however, forecasts for the Dallas real estate market predict that prices will rise through the rest of this year. Zillow’s most recent forecast for the DFW housing market suggests that prices could rise by around 4.4% during 2024.

That prediction was issued in February and extends into the first part of 2025.

A Less Stressful Housing Market for Buyers?

As mentioned, home prices within the Dallas-area real estate market have remained flat over the past year and are expected to rise modestly over the coming months.

This is good news for DFW home buyers, because it removes some of the urgency buyers experienced over the past few years. Buyers won’t feel the same kind of pressure as those who purchased a home two years ago, when prices were skyrocketing.

Recent reports and forecasts also show that the Dallas real estate market is moving at a slower pace these days, compared to the home-buying frenzy of previous years.

Overall, home buyers who enter the DFW housing market in 2024 could have a more relaxed house-hunting experience.

More Sellers Are Slashing Their Prices

Here’s another prediction for the Dallas real estate market that should please local home buyers. Data published recently by Zillow revealed that more than 26% of homes listed for sale in the DFW area had a price reduction January 2024.

In a real estate context, a price reduction occurs when a homeowner comes onto the market at one price and later reduces the asking price. These cuts are typically caused by a lack of offers from buyers, which occurs more often in a sluggish real estate market.

Last month, the Dallas-area housing market had the sixth highest rate of price reductions among the nation’s 50 largest metropolitan areas. And the overall percentage of cuts has increased over the past year.

The DFW real estate market has also experienced a huge drop in the percentage of homes selling about the list price. Last spring, about 70% of homes sold in the metro area ended up selling for more than the original list price.

But by January 2024, that metric had declined to around 14% of transactions.

Forecasts for 2024 suggest that the DFW housing market will offer the most “buyer-friendly” conditions we’ve seen since before the pandemic. And the trends mentioned above give credence to such predictions.

More Properties to Choose From

Dallas-area home buyers could also have more properties to choose from in 2024, due to inventory gains that occurred over the past year or so.

According to a February report from Realtor.com, the total number of active real estate listings in the DFW area rose by 7.6% over the previous 12 months.

At the start of 2024, the DFW area had about a 3.4-month supply of homes for sale. That was up from the all-time record low of 1-month supply recorded at the start of 2022. So clearly the supply situation has improved over the past two years.

These trends reinforce some of the predictions stated earlier, regarding a more buyer-friendly real estate market in Dallas.

General Forecast for the Dallas Real Estate Market

Overall, the 2024 – 2025 forecast for the Dallas-Fort Worth housing scene remains favorable for home buyers.

Mortgage rates have eased since the 20-year high reached last fall. More homes are trickling onto the market. Prices have leveled off. And buyers have more negotiating leverage, as shown by recent sales trends within the housing market.

Forecasts suggest that 2024 could be a good year to buy a home in Dallas, with the prospect of steady price growth ahead.

Here are the key takeaways from this report:

• Nearly 27% of Dallas-area homes listed for sale in January 2024 had a price reduction.
• DFW house values declined slightly over the past year, contrary to the national trend.
• But forecasts suggest that prices could rise modestly during 2024.
• The market is moving at a slower pace with a more relaxed buying experience.
• Inventory gains of the past year have given buyers more properties to choose from.

About the Dallas-Fort Worth Metroplex (DFW)

The Dallas-Fort Worth Metroplex, colloquially known as “DFW,” is a sprawling metropolitan area located in North Texas. It is the fourth-largest metropolitan area in the United States and the economic and cultural center of the region.

Major Cities

The Metroplex encompasses two major urban centers and numerous suburbs and smaller cities. Here’s a breakdown:

• Dallas: The most well-known city in the Metroplex, Dallas is a hub of commerce, finance, and culture, home to numerous Fortune 500 company headquarters.
• Fort Worth: Often described as “Where the West Begins,” Fort Worth maintains a distinct cowboy and Western heritage while having its own dynamic business and cultural scene.
• Other Major Cities: Plano, Irving, Arlington, Garland, McKinney, Frisco, and Denton are among the other notable cities within DFW.

Population

As of the most recent U.S. Census, the DFW Metroplex has a population of over 7.6 million residents. It continues to be one of the fastest-growing metropolitan areas in the nation, adding hundreds of thousands of new residents each year. This brings more home buyers into the Dallas-Fort Worth housing market, boosting competition and putting upward pressure on prices.

Geography

DFW encompasses 13 counties in North Texas, covering a vast expanse of over 9,200 square miles. The landscape is primarily flat prairie with areas of gently rolling hills. Trinity River is the major waterway flowing through the Metroplex.

Economy

The Dallas-Fort Worth economy is highly diversified, providing a broad range of employment opportunities across numerous industries. Key sectors in 2024 include:

• Corporate headquarters: Major Fortune 500 companies headquartered in DFW include AT&T, ExxonMobil, American Airlines, Southwest Airlines, Texas Instruments, and more.
• Finance and banking: The region boasts a strong presence in financial services.
• Technology: DFW is sometimes called the “Silicon Prairie” due to its expanding tech sector.
• Healthcare: Numerous major hospitals and medical centers are headquartered in DFW.
• Logistics and Distribution: The Metroplex’s central location and strong transportation infrastructure make it a key hub for logistics and distribution.

Things to Know for Relocation

• Cost of Living: DFW generally has a lower cost of living than many major coastal cities, especially when it comes to housing market costs.
• Culture and Attractions: The region offers a wealth of cultural and entertainment options, including world-class museums, performing arts venues, professional sports teams (Dallas Cowboys, Texas Rangers, Dallas Mavericks, etc.), and popular nightlife and dining districts.
• Tex-Mex Cuisine: DFW is considered one of the epicenters of Tex-Mex cuisine.
• Transportation: The region has a network of major highways, but can experience traffic congestion. DART (Dallas Area Rapid Transit) provides light rail and bus services. DFW International Airport and Dallas Love Field are major air transportation hubs.
• Climate: The Metroplex is classified as humid subtropical, meaning hot summers and generally mild winters with occasional cold spells.

Additional Resources

• Visit Dallas: https://www.visitdallas.com
• Fort Worth Convention and Visitors Bureau: https://www.fortworth.com

Disclaimers: This report contains forecasts and predictions for the Dallas-area real estate market extending through 2024 and into 2025. Such projections represent an educated “best guess” based on current housing market conditions. No one can predict future real estate trends with complete accuracy. The Home Buying Institute (HBI) makes no claims about future trends.