North Texas Housing Market Shows Early Signs of Stabilizing
The North Texas housing market may be finding a more balanced footing.
According to the latest Texas Housing Insight report from the Texas Real Estate Research Center, several market indicators suggest the imbalance between housing supply and buyer demand is no longer worsening. While affordability challenges, elevated mortgage rates, and economic uncertainty continue to restrain the market, inventory growth is slowing, home price declines are moderating, and sales activity is holding steady.
The July report analyzes revised May 2026 housing data from across Texas, including the Dallas-Fort Worth region.
Inventory Growth Is Beginning to Slow
One of the report’s biggest takeaways is that inventory may be starting to level off.
Statewide housing supply remained elevated at 5.3 months, but months of inventory fell slightly below year-ago levels for the first time in the current market cycle. Researchers also found inventory turnover has stabilized, suggesting home sales are beginning to keep pace with available inventory.
North Texas reflects that trend. Dallas-Fort Worth recorded modest year-over-year declines in both active listings and months of supply, indicating the inventory buildup that has defined much of the past year may be easing.
While it’s too early to determine whether this marks a lasting shift, the report suggests the market is no longer softening at the pace seen earlier in the cycle.
Home Prices Continue to Level Off
Home prices also appear to be stabilizing.
Across Texas, home prices were 0.6% lower than a year ago, extending a year-long trend of modest price declines. However, researchers say those declines are becoming less pronounced.
The Dallas-Fort Worth housing market followed a similar pattern. The region’s home price index slipped 0.5% year over year, while the median home price remained $400,000.
Within the metroplex, conditions varied. Dallas recorded a modest price decline, while Fort Worth-Arlington posted a 0.2% year-over-year increase, making it one of the few major Texas markets to show price growth.
Buyers and Sellers Remain Cautious
Despite signs of stabilization, affordability continues to shape today’s housing market.
Higher mortgage rates are limiting purchasing power, homes are taking longer to sell, and many buyers remain cautious. At the same time, sellers are adjusting to changing conditions through price reductions and concessions.
The report also found new listing activity declined more than expected in May, suggesting many homeowners remain hesitant to enter the market as both buyers and sellers navigate ongoing economic uncertainty.
What This Means for REALTORS®
While today’s market looks different than it did just a few years ago, it is becoming more balanced.
For REALTORS®, that means local market knowledge is more valuable than ever. Inventory, pricing, and buyer demand continue to vary across North Texas, making current market data an important tool for setting expectations, pricing listings, and helping clients make informed decisions.
The latest Texas Housing Insight report doesn’t signal a dramatic market rebound. Instead, it suggests the North Texas housing market may be entering a more balanced phase—one where conditions continue to improve gradually, even as affordability and mortgage rates remain key challenges.