Overview

The Dallas–Fort Worth housing market is continuing its transition into a more balanced environment — and in many areas, conditions are increasingly favorable for buyers.

Home prices across much of the metroplex remain below last year’s levels, and, mortgage rates have eased to their lowest point in three years! Additionally, inventory levels are giving buyers more negotiating power than we’ve seen in recent cycles.

For sellers, serious buyers are still active — but they are more selective, payment-conscious, and value-driven than in recent years. Homes that are strategically priced, properly prepared, and marketed effectively are still moving. The key difference in today’s market is that pricing precision and positioning matter more than ever.

Here’s a comprehensive look at what’s happening across DFW.

Mortgage Rates: A Three-Year Low

Mortgage rates have declined to 6.13%, their lowest level in three years. While the Federal Reserve recently chose to hold its benchmark interest rate steady — a move widely expected by economists — mortgage rates are influenced by broader market forces and investor sentiment rather than directly by the Fed.

Rates are now nearly one full percentage point lower than they were a year ago (when they were hovering near 6.9%), offering buyers improved affordability.

Recent labor reports have come in stronger than expected, which has reduced the likelihood of multiple rate cuts in the near term. If inflation remains stable, economists anticipate the possibility of one rate reduction in the first half of 2026 — but sustained job growth would make aggressive easing less likely.

Looking ahead, most forecasts call for modest stability. Fannie Mae’s January 2026 Housing Forecast projects mortgage rates to average around 6% through 2026 and 2027.

Bottom line: Financing conditions are meaningfully better than a year ago, even without additional Fed cuts.

Median Home Prices: Down in Most Counties

Year-over-year pricing trends across DFW show softness in many areas, though performance varies by county.

Resale Home Prices (Year-Over-Year)

  • Dallas County: +1.5%
  • Collin County: -5.4%
  • Denton County: -5.1%
  • Tarrant County: Flat
  • Kaufman County: -6.0%
  • Rockwall County: +3.3%

Most counties are seeing moderate price corrections, particularly in the northern suburbs where supply has increased. Dallas and Rockwall counties remain relative bright spots.

New Construction: Greater Price Adjustments

New construction pricing has softened more aggressively than resale in most areas — creating competitive pressure on existing homes.

New Construction Median Prices (Year-Over-Year)

  • Dallas County: -2.2%
  • Collin County: -9.5%
  • Denton County: -4.4%
  • Tarrant County: -4.8%
  • Kaufman County: -4.2%
  • Rockwall County: +5.9%

In several northern submarkets, builders are pricing below resale to maintain absorption:

  • Denton County:
    • Resale: $425,000
    • New Construction: $420,000
  • Collin County:
    • Resale: $475,000
    • New Construction: $380,000

This pricing gap is significant and is reshaping buyer decision-making in key growth corridors.

Listings & Inventory: Fewer New Listings, But Supply Remains Elevated

New listings have declined across much of the metroplex:

  • Rockwall County: -6.7%
  • Kaufman County: +0.2% (essentially flat)
  • Denton County: -3.8%
  • Tarrant County: -10.5%
  • Dallas County: -9.1%
  • Collin County: -3.5%

Despite fewer new listings coming to market, overall inventory remains elevated. Months of supply is averaging approximately 4 months across DFW, with Rockwall and Kaufman Counties closer to 5 months.

A 4–5 month supply is typically considered a transitional, balanced market — but trending toward one that favors buyers.

Homes are taking longer to sell, price reductions are more common, and concessions are increasing.

What This Current Real Estate Trend Means

For Sellers

This is no longer a “name your price” environment.

  • Price competitively from day one.
  • Be strategic with marketing.
  • Monitor new construction pricing closely — especially in northern DFW where builders are undercutting resale in some cases.

Homes that are properly priced and well-presented are still selling. Overpriced listings are sitting.

For Buyers

This is a window of opportunity.

  • Rates are meaningfully lower than last year.
  • Prices are down in most counties.
  • Inventory is giving you leverage.
  • Builders are offering incentives and aggressive pricing.

Make offers — below asking price when justified by market data. Many homes are sitting longer, and sellers are negotiating.

Market Positioning: Transitional & Opportunity-Driven

The DFW housing market is not in distress — but it has clearly shifted out of the ultra-competitive seller’s market of recent years. We are in a balanced, negotiating environment, with improving affordability and selective opportunity across the metroplex.

For strategic buyers, this may be one of the more favorable entry points we’ve seen in several years.

For sellers, preparation and precision matter more than ever.

About M&D Real Estate

At M&D, we are redefining what clients deserve. What truly sets M&D apart is our collaborative, team approach. When you choose M&D, you’re not hiring just a top-rated agent—you’re gaining the strength of an entire team working hard for you. Our firm is powered by a team of skilled agents and staff specialists who combine innovative strategies with deep market expertise to deliver outstanding results—whether you’re buying, selling, or leasing residential properties.

Submitted Press Release
Danny Perez / Paige Kimball
M&D Real Estate
Rockwall, TX 75032