Dallas TX Housing Market Update – March 2025
The Dallas housing market continues to evolve—marked by rising sale prices, expanding inventory, and renewed buyer activity as spring unfolds. Behind the numbers, however, the trends point to a market that’s becoming more dynamic, competitive, and strategic on both sides of the deal.
Let’s take a closer look at what the March 2025 data reveals and how you can move smartly in this shifting environment.
Market Supply: Inventory Expands Sharply
Months of Inventory: 5.47
Month-over-Month Change: +6.01%
12-Month Change: +45.1%
Dallas is inching closer to a buyer-leaning market. Inventory is up 6% from February and over 45% higher than March of last year. With 5.47 months of supply, we're still within “balanced market” territory—but just barely.
This shift in supply means buyers are gaining negotiation power. Sellers who price too optimistically could see their listings sit longer or result in price cuts. If you're planning to list, timing and competitive pricing are critical before even more listings hit the market in Q2.
Sales Pace: Homes Are Moving Faster
Median Days on Market: 36
Month-over-Month Change: -26.5%
One of the most surprising trends in March: homes sold faster compared to February, despite rising inventory. Median Days on Market dropped by 26.5%, suggesting that serious buyers are active and acting quickly—especially on well-priced, well-marketed homes.
This is a sign that despite more supply, demand hasn’t disappeared. Homes in desirable neighborhoods and those priced at or below $500K are still seeing strong buyer interest.
Pricing Trends: Sales Up, Appraisals Down
Median Sold Price: $450,000
Month-over-Month Change: +4.65%
Sales prices are rising sharply—up 4.65% in just one month. But there’s a growing gap beneath the surface: the median estimated property value declined to $342,310, a -2.3% drop from February and a -0.1% change year-over-year.
This spread of over $100K between sale price and estimated value highlights a growing appraisal risk for financed deals. Sellers should prepare for potential appraisal shortfalls, while buyers may be able to negotiate when valuations don’t align.
Price Per Square Foot: Sellers Aim High, But Market Pushes Back
Active Listings: $276/sqft (+5.3% MoM)
Pending Listings: $259/sqft (+1.6% MoM)
Sold Listings: $255/sqft (+2.4% MoM)
This breakdown shows that sellers are continuing to price aggressively, but the gap between listing and closing prices suggests buyers are still negotiating.
The fact that sold $/sqft is still rising—despite inventory growth—confirms that buyers are willing to pay for the right home, but only when the value makes sense. The pending $/sqft also shows a modest increase, indicating continued demand for move-in-ready inventory.
Strategic Insights
For Sellers
Now is still a strong time to list, especially while buyers are acting quickly. But don’t assume every home will move fast—buyers have more choices now, and presentation matters. If your home needs updates or is priced above nearby comps, expect pushback. Align with current sold prices, not hopeful list prices.
For Buyers
You have more leverage than you’ve had in the past two years. More inventory means fewer bidding wars, slower negotiations, and more opportunity for closing credits or repairs. However, updated and fairly priced homes are still going quickly—especially under $500K. Be ready to move fast when you find the right fit.
For Investors
This is a market where equity can be captured—but timing is key. The $/sqft spread between active, pending, and sold listings shows opportunity to buy under asking and improve value through light updates. Appraisal gaps can create negotiation openings. Look for homes in the $200–$350/sqft range in transitional neighborhoods.
Final Thoughts
Dallas is no longer the one-sided seller’s market we saw in 2022–2023. Inventory is back, sales pace is healthy, and both buyers and sellers have opportunities—if they move strategically.
Want to buy before rates move again? Thinking of listing ahead of the summer rush? Let’s put a plan in place that fits today’s market realities.
Gustavo Ramos
Realtor – Keller Williams Dallas Metro North
📞 (817) 876-3390
📧 gustavoramos@kw.com
🌐 gustavoramos.kw.com
