What the Latest Housing Market Data Means for DFW Buyers and Sellers

I recently attended a powerful class taught by Dr. Jessica Lautz, Deputy Chief Economist for the National Association of Realtors, and walked away with insights that every homeowner, buyer, and seller in the DFW area needs to know. These data-driven takeaways provide a clear snapshot of where our housing market stands and how to navigate the rest of 2025 with confidence.

The Dallas-Fort Worth real estate market is unique. While it benefits from Texas’ economic growth and steady migration trends, it is also facing challenges like affordability and inventory shortages. Understanding the current market data is essential whether you are preparing to sell a home in Burleson , search for a home in Mansfield , or explore DFW suburbs for the first time.

Home Sales Are at a 30-Year Low

One of the most striking points from Dr. Lautz’s presentation was that U.S. home sales are currently at a 30-year low, despite a population increase of more than 75 million people since 1995. This slowdown is largely due to limited inventory, higher interest rates, and homeowners staying put because they do not want to give up their historically low mortgage rates.

In the DFW area, this trend means that while fewer homes are selling, demand is still strong when the right property hits the market. Well-prepared homes priced correctly are still moving quickly, especially in popular areas like Burleson , Mansfield , and Arlington.

Housing Affordability Hinges on Interest Rates

Dr. Lautz highlighted how sensitive affordability is to even a small change in mortgage rates. For example, if interest rates drop by just 1 percent, from 7 percent to 6 percent, it would allow approximately 145,000 more households in the DFW area to afford the typical home. That is a staggering number, and it shows why so many buyers are waiting for rates to shift.

For buyers, this means timing is everything. While current rates may feel high compared to 2021, creative financing solutions such as temporary buydowns or adjustable-rate mortgages can bridge the gap until refinancing becomes an option. Sellers should understand that if rates do fall, buyer demand could surge — making now a strategic time to prepare their homes for sale.

Home Equity Has Soared

One of the silver linings for homeowners is the incredible equity growth we have seen in recent years. According to the class data, the typical Texas homeowner has gained over 50 percent in equity within the last five years. This surge in property values offers sellers a unique advantage, even if they are concerned about higher interest rates on their next purchase.

For many, this equity represents a chance to move up to a larger home, downsize, or even buy an investment property. If you are curious about your current equity, I can provide a personalized analysis through my Free Home Value Report.

Cash Is King — Even for First-Time Buyers

Another surprising trend is that nearly 1 in 10 first-time buyers are now paying in cash. This is often made possible by gifts from family members, inheritance, or the liquidation of other assets like stocks, 401(k)s, or cryptocurrency. For sellers, this trend is important because cash offers mean faster closings and fewer contingencies.

Buyers should remember that cash buyers have a competitive edge, but there are still ways to stand out. Working with a skilled Realtor who can help craft a strong offer with flexible terms is key when competing against cash.

Generational Shifts Are Reshaping the Market

The class revealed some fascinating insights into generational homebuying trends. Baby Boomers now make up the largest share of homebuyers, surpassing Millennials. The median age of a first-time buyer is now 38 years old, up from 29 in 1985. Generation X is leading the way in multigenerational homes, with 21 percent of buyers choosing this setup. Only 27 percent of buyers have children under 18, compared to 58 percent in 1985, reflecting broader cultural shifts.

These changes highlight how lifestyle needs are evolving, with more families looking for homes that accommodate aging parents, adult children, or flexible spaces.

Pets Are Driving Purchase Decisions

You might be surprised to learn that pets are a major factor in today’s homebuying process. From fenced yards to walkable neighborhoods, pet-friendly features are influencing buyer decisions more than ever. The pet industry is now a 152 billion dollar industry, and this is shaping everything from yard size to flooring choices.

Sellers with pet-friendly properties can highlight these features to attract a wider pool of buyers.

DFW Is Still a Top Migration Destination

Texas continues to draw new residents, with over 560,000 people relocating to the state in recent years. The Dallas-Fort Worth metroplex remains one of the top migration destinations in the country, thanks to job growth, affordability, and a strong quality of life.

Suburbs like Burleson , Mansfield , and smaller towns like Joshua are especially appealing for families who want more space without sacrificing access to big-city amenities.

What This Means for Sellers

For sellers, the market is still favorable, but strategic preparation is key. Homes need to look move-in ready to stand out — buyers expect updated properties with modern finishes and good curb appeal.

I help sellers with every step of the process, from staging recommendations to professional photography and pricing strategies. When done right, homes in DFW are still selling quickly and at strong prices.

What This Means for Buyers

Buyers now have slightly more negotiating power compared to the highly competitive market of the past few years. With inventory up and homes spending more time on the market, there is room to find well-priced properties without intense bidding wars.

The key is to get pre-approved, understand your budget, and work with a Realtor who knows the local market. I can help you identify neighborhoods like Burleson or Mansfield where you can get the most value for your investment.

Conclusion

The DFW real estate market is in a phase of balanced opportunity. While interest rates and inventory challenges have slowed sales, strong migration trends and long-term equity growth mean that buying or selling now can still be a smart move.

If you are curious about your home equity, want to explore homes in Burleson or Mansfield , or need tailored guidance on timing your next move, I am here to help.