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Texas Housing Market Overview

Housing prices in Texas show a 1.1% YoY growth as of January 2025. The constant growth in home prices indicates the strength of the housing market. Currently, the Texas median home price is $335,600. The number of homes sold has decreased by 1.2% YoY.

You can also check the market competitiveness through median days on the market. Homes in Texas now spend 72 days on the market before going under contract. All these metrics indicate the pace and affordability of the current housing market in Texas.

What Does It Mean for Home Buyers and Sellers?
  • If You're a Buyer: You get more negotiation power due to extended median days on the market. Stabilized mortgage rates at around 6.6% make it even better. So, whether you are looking for a condo in Houston or a single-family home in Dallas, you can easily afford your dream Texas home.
  • If You're a Seller: You can still make profits if you sell before prices decline any further. With the rate of home sales dropping, you must be ready to offer concessions to buyers.

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Texas Housing Supply

Texas is among the most affordable states in the country. Living expenses are lower than the national average. The number of homes for sale in Texas constantly grows to fulfill the demand of people moving here. It increased by 14% year over year in January 2025. About 142,352 homes for sale are available in Texas. Presently, the Texas market is balanced with 6 months of supply. Fewer months indicate a seller’s market and more months indicate a buyer’s market.

What Does It Mean for Home Buyers and Sellers?
  • If You're a Buyer: You have an advantage with the increased number of homes for sale. The increasing inventory will potentially meet the demand and stabilize house prices in Texas. Also, lower taxes attract more buyers.
  • If You're a Seller: You must act fast and sell your home before more supply hits the Texas real estate market. Rising inventory could lower demand and lead to fewer offers from buyers. To attract buyers, focus on staging and marketing your home.
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    Texas Housing Demand

    The percentage of homes selling above the list price is a key indicator of housing demand. When more homes sell for more than the list price, it shows strong buyer competition and high demand. A decline suggests more supply.

    Only 10.6% of homes in Texas sold above the list price in January 2025. On the other hand, 30.4% of homes had price drops. The 96.9% sale-to-list price suggests fewer bidding wars and more price flexibility for buyers.

    What Does It Mean for Home Buyers and Sellers?
  • If You're a Buyer: The current Texas housing market shifts in your favor with better deals. 30.4% of homes with price drops suggest fewer bidding wars and better affordability for Texas home buyers.
  • If You're a Seller: You'll need patience as only 10.6% sell above the list. You will have to wait till spring and summer when housing demand increases. During summer, you may experience high demand and more bidding wars for homes. Right now, the Texas real estate market favors buyers with less demand and more negotiation power.
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    Is It a Buyer’s or Seller’s Market?

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    Seller’s Market

    Seller: Housing demand exceeds supply and drives the prices up. Homes sell fast and get multiple offers from buyers.

    As of January 2025, the Texas housing market leans towards home buyers due to increased inventory and extended days on the market. Buyers have more leverage in Texas as the number of homes for sale increased by 14% YoY.

    However, higher mortgage rates (6.5%-7.%) may reduce buying power, and a rise in new active home listings may attract home shoppers. Market trends can vary by region and should be assessed locally.

    Texas Housing Market Insights

    The housing market in Texas has seen significant shifts in recent years. Rising property prices in Texas have become a defining shift driven by high demand and limited inventory. The market faces new construction challenges and an influx of relocation buyers, particularly from high-cost states.

    However, real estate in Texas may face headwinds with the increase in mortgage rates. Housing markets like Dallas and Houston have cooled off due to low competition. Homes in such cities spend an average of more than 60 days on the market. Overall, Texas’s housing market favors home buyers. If you’re buying a property in Texas, you must check for moving expenses and HOA fees as well. Looking ahead, Texas housing market predictions for 2025 suggest continued growth as the market stabilizes and adjusts to ongoing economic factors.

    Nationwide Migration Trends

    Affordable cost of living, better climates, and strong job markets drive migration patterns across the states. The Lone Star State has experienced rapid migration growth. There are plenty of affordable places, like Wichita Falls, Abilene, and San Antonio, with median prices ranging from $199k to $255k.

    The state’s lower income tax and job growth have contributed to a migration surge from California, Chicago, and the East Coast. Families and professionals tend to move here from expensive areas like San Francisco, Los Angeles, and Washington.

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    Frequently Asked Questions

    Will the housing market crash in Texas in 2025?

    Are home prices dropping in Texas?

    Which city has the cheapest housing market in Texas?

    Should I wait for some time before buying houses in Texas?

    How can I list my home for sale in Texas?

    What is the average mortgage rate for buyers in Texas?

    How does Texas's housing market compare to the national market?

    Is now a good time to buy or sell a home in Texas?

    How have home prices changed in Texas over the past years?

    What are the Texas housing market predictions for 2025?

    Data provided by Redfin, a national real estate brokerage.

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    TREC: Info About Brokerage Services, Consumer Protection Notice.

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    Frequently Asked Questions

    What's the average cost of a house in Texas?

    The average cost of a house in Texas is $351,600. Home prices have decreased by 1.4% compared to last year. Moreover, the cost of living in Texas is 2% lower than the national average.

    Where is it cheapest to buy a house in Texas?

    The cheapest place to buy a house in Texas is Wichita Falls, with a median home value of $163,276. It also has a cost of living 23.7% below the national average, making it ideal for affordable homeownership.

    Other budget-friendly cities include Abilene, Brownsville, Killeen, and Amarillo, where median home prices are typically under $220,000. These cities also offer a lower cost of living, typically below the national average.

    Is Texas a good place to live?

    Yes, Texas is considered a good place to live for many people. It offers affordable housing, no state income tax, a strong job market, and a diverse culture. Major cities like Austin, Dallas, and Houston provide urban opportunities, while smaller towns offer a slower pace of life and lower living costs.

    In particular, San Antonio stands out as one of the best places to buy a home, with a median price of around $249,398. It combines a low cost of living (8.7% lower than the national average) with steady population growth, making it an excellent choice for both first-time buyers and long-term investors.

    However, it's important to consider potential drawbacks. Extreme summer heat, high property taxes, and traffic congestion in larger cities can be challenges for some residents.

    Can a foreigner buy a house in Texas?

    Yes, foreigners can buy a house in Texas. There are no federal restrictions preventing foreign nationals from purchasing property in the US, including in Texas. However, some specific types of land, such as agricultural property or areas near military bases, may be subject to additional state or local regulations.

    Is it smarter to buy or rent in Texas?

    Buying vs. renting in Texas depends on your goals, market trends, and financial readiness. The average home costs $351,600, while monthly rent averages $1,875, totaling $22,500 a year without building equity.

    With 20% down and a 30-year mortgage at 6.5%, your monthly payment is about $1,777, excluding taxes and insurance. Property taxes average 1.8% or around $5,400/year on a $300,000 home, but homeowners gain equity and enjoy tax deductions. You can use a mortgage calculator to estimate your exact costs.

    If you're financially stable and plan to stay long-term, buying can be the smarter choice. For example, homes in cities like San Antonio ($250K) and Lubbock ($200K) are below the state average, and values in many areas have appreciated by 5–7% annually.

    What are the disadvantages of moving to Texas?

    Hot summers & extreme weather: Texas experiences long, hot summers and is prone to natural disasters like hurricanes, tornadoes, and droughts.

    Heavy traffic & urban sprawl: Rapid growth in major cities leads to congestion and longer commutes.

    Limited public transportation: Most cities have underdeveloped transit systems, making car ownership almost essential.

    High property taxes: Texas has no income tax, but makes up for it with some of the highest property taxes in the US. (around 1.81%).

    Water scarcity: Droughts and water restrictions are common, requiring mindful water usage.

    Limited access to affordable healthcare: Texas has a high rate of uninsured residents and did not expand Medicaid, which can make healthcare costly.

    What's the safest place to live in Texas?

    Fulshear is considered the safest place to live in Texas. Located just west of Houston, Fulshear consistently ranks at the top for low violent and property crime rates.

    According to recent FBI crime data and Safewise's 2025 safety rankings, Fulshear had zero violent crimes per 1,000 residents and extremely low property crime rates. This makes it ideal for families and retirees seeking peace of mind in a growing suburban community.

    How many homes are available for sale in Texas?

    There are currently 392,846 homes for sale in Texas. Of these, 142 are hot properties and 164 are newly listed properties.

    What are the average HOA fees in Texas?

    The average HOA (Homeowners Association) fees in Texas typically range from $200 to $300 per month. However, the actual amount can vary depending on the property's location, type, and amenities offered.

    In cities like Austin and Dallas, HOA fees typically range from $250 to $500 per month, especially in communities that offer amenities such as pools, gyms, or security services. Meanwhile, areas like San Antonio and Houston tend to have more moderate fees, generally ranging from $150 to $400 per month. Luxury condos and gated communities may have significantly higher costs.

    What is the average utility cost in Texas?

    The average monthly utility cost in Texas is approximately $400. This includes electricity, natural gas, water, trash, and internet services. However, actual costs can vary depending on location, home size, number of occupants, and usage.

    Warmer regions like Dallas and Houston may see higher electricity bills due to air conditioning. In contrast, smaller towns or energy-efficient homes may have lower overall utility expenses.

    For Sale By Owner

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    Houzeo Corp. holds real estate brokerage licenses in Alabama (License No. 000157023 - 0) and Texas (License No. 9013396)

    TREC: Info About Brokerage Services, Consumer Protection Notice.

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