April ‘25 Market Update

The recently released figures by the Texas A&M Real Estate Research Center (which aggregates real estate data across Texas’ Multiple Listing Services used by Realtor Boards) indicate continuing negative trends, even in the prime selling season. For Texas’ four major markets (Austin, Dallas, Houston, and San Antonio), there is a clear and consistent 15-month TREND of 1) declining unit sales, 2) declining price per square foot (excluding Dallas), and 3) an increase in the number of active listings. The four markets are averaging 4.85 months of inventory, resulting in an average of 3.25 months to sell a property.

The rise in the 30-year mortgage rate is keeping demand on the sidelines. Unfortunately, rates have recently risen above the 7% mark, making home affordability more challenging financially and mentally. We believe there is pent-up demand awaiting the lowering of the cost of capital. Should rates reverse recent trends and achieve rates below 6%, we believe the market is poised for a torrid turnaround. However, if rates remain elevated, we believe more of the same softening is in order.