January ‘25 Market Update

As 2025 begins, we find ourselves with a relatively consistent theme that we have been experiencing over the last 15 months in Texas' four major markets (Austin, Dallas, Houston, and San Antonio).

According to recently released data by Texas A&M Real Estate Research Center, all four markets continue with an upward trend in unit sales for the last 15 months. Contrarily, with this increase in unit sales, we are also experiencing an increasing trend of active listings in these same markets. This is resulting in a mixed market with two opposing forces competing against each other.

Relatedly, yet contradictory in the 4 markets, the average price per square foot has been trending upwards in both Houston and Dallas markets, while Austin and San Antonio markets have the opposite direction of trending downward.

Regardless of their pricing trends, all four markets pricing is well below the trend line for January 2025, which may be solely attributable to seasonality or may be the beginning of pricing showing some weakness that may persist. The backdrop of mortgage rates, directly impacting affordability, has been in a range of 7.44% and 6.18% and currently stands at a recent average of 6.96%. Should mortgage rates fall this spring, pricing may firm and sales increase to stabilize the market. Mortgage rates remain the lynchpin, and their direction will greatly impact the near-term market.