Dallas-Fort Worth Housing Inventory Climbs to Highest Level in Over a Decade

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The Dallas-Fort Worth (DFW) housing market is undergoing a major shift as the number of homes for sale reaches its highest point in more than ten years, while price growth continues to slow. This is a sharp contrast to the pandemic years when bidding wars, soaring prices, and a rush of out-of-state buyers fueled intense competition.

Experts say the change is being driven by more sellers returning to the market after waiting through periods of interest rate uncertainty, a surge in new construction, and reduced demand due to affordability concerns. Prices have started to decline compared to last year, although they are still well above pre-pandemic levels.

Data from real estate consulting firm Reventure shows that active listings in the DFW area rose to nearly 32,000 last month. This is about 60 % higher than the July average of 20,000 since 2017. Reventure CEO Nick Gerli described the current supply as “through the roof” in a post on X, adding that this is the most selection the market has seen since the end of the 2011 to 2012 downturn. Zillow reports that the average home value in Dallas has fallen 4.6 % over the past year to $315,056.

Reventure projects a 7.8 % drop in home values over the next 12 months. Gerli has also said that the market is still “overvalued” by 22 percent and could see prices fall for a couple of years before finding a bottom.

Dallas-based real estate agent and builder Harrison Polsky of Douglas Elliman and Catēna Homes said this trend is not unexpected after years of rapid price increases. According to Zillow, between March 2017 and May 2025, home values in Dallas climbed from $185,000 to $331,000. “What’s happening in Dallas-Fort Worth isn’t totally surprising,” Polsky told Newsweek. “We had such an explosive run-up in prices during the pandemic and people moving here in droves, low interest rates, tons of investor activity. Now we’re seeing the market catch its breath. A lot of that outside momentum has cooled, and buyers are just being more cautious. It’s not just Dallas; it’s happening in other Texas cities, too, but we’re feeling it here more because we had such a sharp rise to begin with. This is more of a recalibration than a collapse.”

While some increase in listings is common in warmer months, Polsky said this year’s jump goes beyond the usual seasonal pattern. “Some of this is definitely seasonal. We always see more homes hit the market in spring and summer,” he said. “But this year feels different. Sellers who were holding off last year because of rate uncertainty are now listing, hoping to catch buyers before prices dip further. At the same time, we’re seeing more new construction coming online, and fewer out-of-state buyers compared to the pandemic peak. So, it’s not just a seasonal bump. It’s a shift toward a market that’s getting more competitive.”

Polsky believes Reventure’s forecasted 7 to 8% drop is possible in neighborhoods where prices rose quickly. “A 7 to 8 % drop might sound dramatic, but in context, it’s not totally out of bounds, especially in neighborhoods where prices got inflated quickly,” he said. “That said, I don’t think every area will see that kind of dip. Some neighborhoods with strong schools, walkability, or limited inventory will probably hold up better. If rates stay high and inventory keeps climbing, sure, we could get close to that number. But I’d call that the higher end of the range, not a baseline for the whole market.”

For buyers, the current market could present the best opportunity in years to secure a good deal. “If you’re a buyer, this is probably the best shot you’ve had in years to negotiate,” Polsky said. “Prices are softer, sellers are more flexible, and you’re not having to compete in crazy bidding wars like before. I always tell clients, if you’re planning to stay in the home for a while, and you find the right fit, go for it. Waiting for the ‘perfect’ bottom can backfire, especially if rates tick up again. This is a market where patience helps, but hesitation could cost you the right opportunity.”

For sellers, conditions are becoming more difficult. “You’ve got to be honest with yourself about today’s market,” Polsky said. “Gone are the days of throwing out a sky-high asking price and getting multiple offers overnight. Buyers are smarter and have way more options now. The best thing a seller can do is price right from the start, make the home look its absolute best, and be open to conversations. You don’t need to give the house away, but you do need to show you’re serious about selling. Presentation and realistic expectations are everything right now.”