Texas Real Estate: Statewide Median Price Declines Despite Metro Gains

Event summary

  • The statewide median home price in Texas decreased by 1.2% in 2025, reaching $335,000.
  • While the statewide median declined, prices increased in a majority (14 of 26) of Texas metropolitan areas.
  • Home sales increased statewide by 1.3% in 2025, with Abilene experiencing the largest jump (26.4%).
  • The average time homes stayed on the market rose to 67 days, and months of inventory increased to 4.6 months, indicating a more balanced market.
  • Active listings increased statewide by 23.1%, contributing to the longer selling times.

The big picture

The contrasting trends of rising prices in many metros alongside a statewide decline signal a maturation of the Texas real estate market. The rapid price appreciation seen in major cities is moderating, while smaller markets are experiencing continued growth. This divergence suggests a redistribution of demand and investment across the state, potentially driven by affordability concerns and changing lifestyle preferences. The increase in inventory and days on market further indicates a move towards a more balanced market, reducing the urgency for buyers and potentially impacting future price trends.

What we're watching

Regional Divergence
The disparity between metro-level price increases and the statewide decline suggests a potential shift in investment patterns, with capital flowing to smaller or previously undervalued markets while larger urban centers experience cooling.
Inventory Levels
The continued increase in inventory and days on market indicates that the seller's market conditions of recent years are easing, potentially impacting future price appreciation and requiring adjustments in pricing strategies.
Market Sensitivity
The report's emphasis on hyper-local market conditions highlights the increased sensitivity of Texas real estate to localized economic factors and demographic shifts, demanding more granular data and analysis for informed decision-making.