May ‘25 Market Update

GROUNDHOG DAY: stubborn mortgage rates, higher inventories, less sales, and lower prices continue. For the last while, and according to recently released figures by Texas A&M Real Estate Research Center), we see continuing overall negative trends, even in the prime selling season.

More specifically, for ALL of Texas’ four major markets (Austin, Dallas, Houston, and San Antonio), each of these markets, in May 2025, have declines in unit sales and average price per square feet compared to the same period last year, while experiencing ever increasing inventories month over month, since December 2024.

On average, for these 4 markets on a Year-Over-Year basis: 1) Average Price Per Square Feet DECREASED 2.25%, 2) Unit Sales DECREASED 3.73%, 3) Months of Inventory INCREASED by 28.4%, and 4) Active Listings INCREASED by 31.2%.

This indicates a continuing deterioration of the market that is now a Buyer’s market in our opinion. With slowing sales and increased active listings, this allows Buyer’s larger selections and more negotiating room. Pricing and sales have been in a decline trend line for the last two years, while mortgage rates have hovered around 6.75 to 7.0%, which is not enticing buyers off the sidelines.  With current macroeconomics, the housing market remains challenging for some Sellers, but the adage of “location, location, location” provides some relief to other Sellers.