Dallas Housing Market Turns, Number of Homes for Sale Go 'Through the Roof'

Newsweek

3 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
The Dallas-Fort Worth housing market is experiencing a sharp shift, with the number of homes for sale hitting levels not seen in more than a decade and price growth starting to reverse.
The surge in available homes in Dallas marks a stark contrast to the pandemic-era frenzy that saw bidding wars, record price growth, and a flood of out-of-state buyers, according to housing experts.
Analysts, meanwhile, point to a combination of factors behind the turnaround: more sellers re-entering the market after holding off during periods of interest rate uncertainty, a wave of new construction, and slowing demand as affordability pressures mount. With prices slipping year-over-year, they remain significantly higher than pre-pandemic levels.
Active listings in Dallas-Fort Worth reached almost 32,000 last month, according to Nick Gerli, CEO of real estate data consulting firm Reventure. That is around 60 percent more than the July average of 20,000 going back to 2017.
Gerli described the current supply situation as "through the roof" in a post on X earlier this month, noting that the inventory surge is "happening pretty much everywhere in DFW."
"[This is] the most selection the market has had since the tail end of the last downturn in 2011–12," Gerli wrote. Currently in Dallas, Zillow says house prices are down 4.6 percent over the last year, with an average value of $315,056.
Looking ahead, Reventure forecasts a 7.8 percent drop in Dallas-Fort Worth home values over the next 12 months. On X, Gerli described the market as still "overvalued" by 22 percent and suggested prices may continue to fall for a couple of years before hitting bottom.
Housing Price Drop 'Isn't Totally Surprising'
For Harrison Polsky, a Dallas-based agent with Douglas Elliman and principal of Catēna Homes, the current cooling follows a period of unusually rapid growth. Between March 2017 and a peak in May 2025, home values in Dallas grew from $185,000 to $331,000, according to Zillow.
"What's happening in Dallas-Fort Worth isn't totally surprising," Polsky told Newsweek. "We had such an explosive run-up in prices during the pandemic and people moving here in droves, low interest rates, tons of investor activity. Now we're seeing the market catch its breath. A lot of that outside momentum has cooled, and buyers are just being more cautious. It's not just Dallas—it's happening in other Texas cities too, but we're feeling it here more because we had such a sharp rise to begin with. This is more of a recalibration than a collapse."
Some increase in supply is normal during the warmer months, but Polsky said the current surge goes beyond seasonal patterns.
"Some of this is definitely seasonal—we always see more homes hit the market in spring and summer," he explained. "But this year feels different. Sellers who were holding off last year because of rate uncertainty are now listing, hoping to catch buyers before prices dip further. At the same time, we're seeing more new construction coming online, and fewer out-of-state buyers compared to the pandemic peak. So, it's not just a seasonal bump—it's a shift toward a market that's getting more competitive."
Stock image/file photo: The Dallas skyline taken in late afternoon.
Stock image/file photo: The Dallas skyline taken in late afternoon.
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Buyer's Market: Prices Drops to Continue
Polsky sees Reventure's 7 to 8 percent drop forecast as plausible in certain parts of the metro.
"A 7 to 8 percent drop might sound dramatic, but in context, it's not totally out of bounds—especially in neighborhoods where prices got inflated quickly," he said. "That said, I don't think every area will see that kind of dip. Some neighborhoods with strong schools, walkability, or limited inventory will probably hold up better. If rates stay high and inventory keeps climbing, sure, we could get close to that number. But I'd call that the higher end of the range—not a baseline for the whole market."
For prospective buyers, the shift could bring long-awaited relief from years of overheated conditions.
"If you're a buyer, this is probably the best shot you've had in years to negotiate," Polsky said. "Prices are softer, sellers are more flexible, and you're not having to compete in crazy bidding wars like before. I always tell clients: if you're planning to stay in the home for a while, and you find the right fit, go for it. Waiting for the 'perfect' bottom can backfire—especially if rates tick up again. This is a market where patience helps, but hesitation could cost you the right opportunity."
Sellers, however, could be facing a more challenging environment.
"You've got to be honest with yourself about today's market," Polsky said. "Gone are the days of throwing out a sky-high asking price and getting multiple offers overnight. Buyers are smarter and have way more options now. The best thing a seller can do is price right from the start, make the home look its absolute best, and be open to conversations. You don't need to give the house away, but you do need to show you're serious about selling. Presentation and realistic expectations are everything right now."