Texas Housing Insight

Texas home sales fell sharply in November 2025, extending the subdued momentum observed in October.

The Texas housing market ended 2025 on firmer footing than it began, posting moderately higher annual sales than the previous year.

The latest housing data show conditions have shifted in favor of homebuyers as the spring homebuying gets underway.

The Texas housing market reflected ongoing challenges in February 2025, with weak home sales a reminder of low affordability and cautious buyer behavior amid economic uncertainty.

Total home sales declined in first quarter 2025. The recent surge in inventory was not enough to counteract a slowdown in home sales, with February and March contributing to the overall decline.

After a sluggish first quarter, Texas spring home sales declined more sharply in April, marking the weakest performance of the year to date.

Rising inventory is shifting Texas housing toward a buyer’s market, with price cuts and increased negotiation power despite affordability issues.

It’s becoming more apparent that the housing market is facing a concerning supply and demand (more precisely, effective demand) imbalance, as rapidly growing inventory continues to outpace constrained buyer affordability—in Texas especially.

Home sales activity continued to build momentum in July, extending June’s strong rebound with a 3.3 percent year-over-year (YoY) increase.

August typically marks the tail end of the peak spring/summer homebuying season, with activity slowing following the surge from April through July.

Housing market cycles are typically marked by prices and sales volume moving in the same direction. That said, recent market indicators point to a divergence from the usual pattern in the Texas housing market.

The Texas housing market continues to move through a period of adjustment marked by softening prices under elevated inventory levels.