Major Correction in Texas Housing Market: Prices Are Declining

The Texas housing market is experiencing a significant correction due to an increase in supply and a decline in demand. As of 2025, home prices have noticeably dropped in several cities, especially in Austin, Dallas, and San Antonio.

The main reasons behind this trend include rising mortgage interest rates, higher construction costs, and a slowdown in migration. Higher mortgage rates are limiting buyers’ purchasing power, which reduces demand. At the same time, an increase in available homes is putting downward pressure on prices.

Recently, the number of homes for sale across Texas has surged, giving buyers more options and greater negotiating power. Experts expect this downward trend in prices to continue throughout 2025.