T
he Dallas-Fort Worth housing market is undergoing a significant shift, with the number of homes for sale reaching levels not seen in over a decade and price growth starting to slow. This marks a stark contrast to the pandemic-era frenzy that saw record price growth, bidding wars, and an influx of out-of-state buyers. Analysts attribute the turnaround to a combination of factors, including more sellers re-entering the market after holding off due to interest rate uncertainty, a surge in new construction, and slowing demand as affordability pressures mount.

    Active listings in Dallas-Fort Worth reached nearly 32,000 last month, a 60% increase from the July average over the past five years. According to Nick Gerli, CEO of Reventure, this is "through the roof" and happening across the DFW area. Currently, house prices are down 4.6% year-over-year in Dallas, with an average value of $315,056.

    Reventure forecasts a 7.8% drop in Dallas-Fort Worth home values over the next 12 months, with Gerli describing the market as still "overvalued" by 22%. Harrison Polsky, a Dallas-based agent, notes that the current cooling follows an unusually rapid growth period between 2017 and 2025, during which home values grew from $185,000 to $331,000.

    Polsky sees some increase in supply as normal during warmer months but believes this year's surge goes beyond seasonal patterns. He attributes it to sellers listing their homes after holding off due to rate uncertainty and new construction coming online. Polsky forecasts a 7-8% drop in certain areas, but notes that not all neighborhoods will see such a significant dip.

    For prospective buyers, the shift could bring relief from years of overheated conditions. Polsky advises buyers to be patient and flexible, as prices are softer and sellers more willing to negotiate. Sellers, however, may face a more challenging environment, requiring realistic expectations and a strong presentation to attract buyers.