Texas Housing Market Sees Shift with Increased Listings and Stabilizing Prices in 2025

In early 2025, the Texas housing market experienced a significant shift, marked by increased inventory and moderating home prices, signaling a transition toward a more balanced environment for buyers and sellers.

By January 2025, active listings in Texas reached approximately 120,100, a nearly 30% year-over-year increase, leading to a months' supply of about 4.5 months—the highest in a decade and surpassing pre-pandemic levels. source This surge in inventory reflects a combination of factors, including a slowdown in home sales and an uptick in new construction.

In Austin, 80.2% of homes sold below their original listing price in February 2025, positioning the city among the top five major metro areas with the highest percentage of under-list-price home sales. source Similarly, San Antonio saw a reduction in institutional investor activity, with such investors purchasing 9.5% of homes sold in 2024, down from previous years. source

High mortgage rates, hovering near 7%, have dampened buyer confidence and affordability, contributing to the market slowdown. source Despite these challenges, the increase in housing inventory and the decline in home prices across Texas suggest a shift toward a more buyer-friendly market.

The Texas housing market's recent trends indicate a move toward a more balanced environment, offering opportunities for buyers and prompting sellers to adjust strategies in response to evolving market conditions.