Texas Market Trends

 

– 2025 Housing News –

In 2025, experts predict median sales price will increase due to the market’s tight inventory of homes by approximately 1.2% over last year. However, not every housing market is experiencing rising home prices.

Currently, the ration of sale-to-list price is at 96.9%. Tariffs that are currently targeting construction materials such steel, lumber and aluminum have increased costs raising concerns for both buyers and sellers.

Among the largest metro-area housing markets, approximately 20% are experiencing falling home prices on a year-over-year basis. Many home markets in Texas, Arizona, Louisiana & Florida have now surpassed pre-pandemic 2019 levels and are experiencing price corrections. Declines in Texas are especially evident in Austin (-4.6%), San Antonio (-2.7%) and Dallas (-2.4%).

Soft markets where homebuyers are gaining leverage are located primarily in Sun Belt regions particularly the Gulf Coast & Mountain West. This is compounded by the uptick in new homes. Builders have lowered prices and offered incentives to increase sales contributing to a cooling effect on the resale market. As a result, buyers are opting to purchase new homes offering favorable deals rather than considering existing homes. 

Mortgage News

30-Year Mortgage Rates Experience Ups & Downs In 2025

Calls for lower mortgage rates have become a defining chant of the decade for hopeful homebuyers and homeowners looking to refinance — and it’s easy to see why. 

According to Freddie Mac, the average 30-year fixed mortgage rate is currently around 6.8%, while 15-year fixed rates sit near 6%. That’s more than double the sub-3% rates seen during the pandemic boom.

Still, waiting for rates to drop before making a move might not be your best bet. Experts say meaningful relief isn’t likely in the near future, based on current economic trends and housing market data. 

On top of that, political uncertainty and tariffs on building materials could further impact costs. If you’re ready to buy, it’s not all bad news — just consider shifting your strategy from chasing the perfect rate to focusing on your long-term homeownership goals. A buyer should certainly see equity build up with a long term game in mind. 

Despite elevated pricing buyers may want to consider jumping into the mix and locking in a mortgage rate & purchase in the event rates climb even higher!

Prices Rising Faster In Kid Friendly Neighborhood

200,000 more Americans will turn 32 this year than did last year. That may seem like a random factoid, but it has big implications for the housing market. That is because 32 is the age when many Americans buy their first home. It is also close to the median age of parents with newborns. And with a couple hundred thousand more Americans turning 32 this year – and even more next year – there will be a lot of home buyers looking to buy a home in a family-friendly neighborhood. That means increasing demand for affordable homes at a time when the inventory of homes for sale in those price ranges is lower than normal. The effects can already be seen.

According to one recent analysis, home prices are rising about 3 percent faster in areas with a larger share of kids than they are in Zip codes where there are fewer kids. So, what does this mean for young Americans who are starting families and thinking about buying a home? Well, it means competition and prices will be rising in desirable, kid-friendly neighborhoods, so it is more important than ever to have some savings and your finances in order.

Source: prnewswire.com

Economic News

More Homeowners Now Considered Equity Rich

The gap between what homeowners owe on their mortgages and what their homes are worth continues to widen, according to new numbers from ATTOM Data Solutions. Their most recent U.S. Home Equity & Underwater Report found that 41.9 percent of mortgaged residential properties were considered equity rich. Equity rich refers to when the combined amount of loan balances is no more than 50 percent of a property’s estimated value. In short, it is good news for homeowners – and it is spreading. The percentage of equity-rich properties was up from 39.5 percent in the third quarter and 30.2 percent at the same time the year before.

Todd Teta, ATTOM’s chief product officer, says homeowners benefited from last year’s home-price increases. “As home prices kept rising, so did the equity built up in residential properties, to the point where close to half of all mortgage payers around the country found themselves in equity-rich territory,” Teta said. “No doubt, there are market metrics that pose warnings about how long the boom can last and equity can keep improving … But for now, homeowners are sitting pretty as the wealth they have tucked away in their homes keeps growing.”

Source: attomdata.com

Real Estate Trend #1: Slim Pickings for Home Buyers

What Slim Pickings Mean for Buyers

Low inventory means you need to be on your toes when you go house hunting—the best homes will likely be snatched up fast. That doesn’t leave much time to hem and haw over your home search. If you want to find a good home in this slim market, here’s some advice:

• Sacrifice some wants. If you can’t find the house you want be willing to give up some “nice-to-haves” for your “must-haves.” Find the least expensive home in the best neighborhood you can afford and upgrade over time.
• Expand your search. What if your desired location to buy is too competitive? You might be surprised at the gem you can find in a less popular neighborhood. Working with a Realtor© such as Cyndex Realty is the best way to find a home that fits your budget and lifestyle.
• Get pre-approved ASAP. Getting preapproved before you go house hunting is a must in any market. With such a limited home supply, not doing this legwork ahead of time gives a “pre-approved” buyer the ability to swipe the home you want right out of your hands.

What Slim Pickings Mean for Sellers

Low inventory means low selling competition! You can probably expect to see offer letters flooding your mailbox. Since your home will be one of the (relatively) few listed on the market, you could be in the driver’s seat. So enjoy possibly picking the best offer and moving at a pace that best suits your timeline.

But after your home is sold, you probably won’t be in the driver’s seat anymore (if you’re now a buyer), so decide on plans for your next home before you sell.

Real Estate Trend #2: Home Prices Are Still Rising

Next up: home price trends. Existing home prices grew a whopping 15%, rising to a national median of well over $300,000! This marks more than 100 straight months of year-over-year price gains.⁴ Sellers, this should put a big smile on your face! And hang tight, buyers—we have some advice for you too.

What Higher Prices Mean for Buyers

If you’re going to buy a home in this expensive market, you absolutely must find out how much house you can really afford. Commit to staying within that budget amount no matter how much pressure you feel watching competitors pluck good homes off the market.

To feel confident about buying a home this year, follow these tips:

• Limit your house payment to no more than 25% of your monthly take-home pay. This payment includes principal, interest, property taxes, homeowner’s insurance and, if your down payment is lower than 20%, private mortgage insurance (PMI). Plus, don’t forget to consider homeowners association (HOA) fees when preparing your budget.
• Save at least a 10–20% down payment. A 20% or more down payment helps you avoid Private Mortgage Insurance (PMI)—the extra fee added to your mortgage to protect your lender (not you) in case you don’t make payments. Anything less than 10% down will drown you in extra interest & fees. Saving a big down payment like this is possible! If you’re patient and motivated, you can save for a five figure down payment by this time next year.
• Choose a 15-year fixed-rate conventional mortgage. The overall lowest cost home loan is a 15-year fixed-rate mortgage. Rip-off mortgages like the 30-year mortgage, FHA, VA, USDA, and adjustable-rate ones will charge you so much extra in interest & fees and keep you in debt for decades. No thanks!

What Higher Prices Mean for Sellers

A nice profit may be on the horizon! And that’s great news because you’ll really want that extra money when buying your next home. To get the best offer for your home, work with an experienced Realtor© such as Cyndex Realty who really knows your local market.

And be sure to wait for the right offer. Some buyers may try to gut punch you with a low number. If you aren’t in a hurry to move, wait for an offer that gives you the most profit. Remember, the less desperate person always has the upper hand during negotiations.

Real Estate Trend #3: Mortgage Interest Rates

The average mortgage interest rate (that fee lenders charge as a percentage of your loan amount) has been unpredictable of late. However, they have stayed within a range. In fact, the average rate for a 15-year fixed-rate mortgage was 6.21% as of the 1st quarter of 2025.⁵ And now economist geeks think interest rates will continue to hover around this rate in if not drop slightly in 2025, which is still pretty low.⁶

What Rates Mean for Buyers

Sure, interest rates have dropped slightly from highs during 2024—which can help with affordability. Just be careful not to let that pressure you into buying a house when you aren’t really ready. A lower interest rate on a house you can’t afford is still a bad deal. So remember to stick to our advice on monthly payment limit, down payment amount and mortgage type (see Trend #2) and you’ll be in great shape!

What Lower Rates Mean for Sellers

If interest rates stay steady, buyers will be more motivated to buy your home sooner than later. But if interest rates do start to increase later in the year, just plan for your house to be on the market a little longer. If you don’t plan on moving anytime soon, you might be in a good position rate wise given you took a mortgage or refinanced when rates were in the 2-4% range.

Real Estate Trend #4: Online Real Estate Services Are Growing

No doubt you’ve heard of real estate services like Zillow that allow you to browse or list homes for sale online with the click of a button. But did you know that online services are now offering to buy and sell your house for you?

Third-Party Buyers

Here’s how it works: You tell companies like Zillow or Opendoor about the house you want to sell. They buy it from you, pump some money into it to resell at a higher price, handle all the home processing stuff like inspections, repairs, and home showings, and then charge you pretty much the same as an agent commission for selling costs—plus, some of these companies include an additional service fee (icing on their cake). They promise less hassle, but it may mean less profit for you than working with a top-notch Realtor© such as Cyndex Realty who could sell your home for more money.

Using a “Virtual” Agent

Hybrid services like Redfin aim to reduce traditional agent commissions by handling things online. This gives you partial services that are similar to working with an agent, but for a fraction of the cost. Think of it as a middle ground between selling with an agent and selling by yourself. But when selling a home, be wary of the middle ground. Your home is your biggest asset, and you get what you pay for!

Mobile or Online Closings

In related news, digital technology is also making it easier to handle document-based tasks virtually. For example, many home transactions are using electronic signature apps and remote online notarization to streamline the process. In other words, there’s a chance you can buy or sell a house this year without getting out of your car or ever changing out of your bathrobe and slippers.

Real Estate Trend #5: Risky Buying Options Are More Accessible

Okay, let’s cover some newer “creative” ways to purchase a home that are trending (beware!).

Rent-to-Own

First, if you’re itching to buy a home but can’t quite afford it yet, some sellers like Bill.com (formerly Divvy) offer a rent-to-own agreement. In this deal, you agree to rent the home for a specific amount of time (could be several months to several years) before becoming the owner. The plus side of rent-to-own is that it allows you to bypass the time it takes to save for a down payment and get into a house fast. Also, it means you don’t have to qualify for a mortgage right away.

The downside of rent-to-own is that it makes your rent more expensive because some of your monthly payments will go toward future homeownership. However, if you later decide you don’t want to buy the house or something breaks your contract, all those extra payments will have been a waste. Plus, you may be required to handle repairs and maintenance yourself even while renting! This option leaves you in a very vulnerable place financially.

Bottom line: If you feel like you can’t afford homeownership, it’s best to wait until your financial ducks are in a row.

Loans for Down Payments

Another risky buying option to avoid is taking out a personal loan to fund a down payment. Purchasing a home with no money down is never a good idea. Remember, you want at least a 10–20% down payment. Buying a house with anything less will rob you of your other financial goals by having you pay too much extra in interest & fees. Thankfully, not many mortgage lenders allow you to do this—plus, it can even hinder your ability to qualify for the amount of mortgage you need.

What if I’m Not Buying or Selling a Home This Year?

You may be thinking, All this is great, but I’m not going anywhere anytime soon. We hear you, and here’s what you should know for now:

1. Equity probably will most likely increase through 2025.

With most housing markets at low risk for a downturn, Freddie Mac believes home prices will continue to rise in 2025 with experts predicting increases of 5% or less.⁸ This is still good news for sellers because you’ll likely make a nice profit when you do decide to sell. Continue to monitor how much your home is worth to make sure your equity (what your home is worth minus how much you owe on it) is going up.

2. A real estate market crash looks unlikely.

With all the uncertainty behind everything that has happened you might be wondering if the housing market could collapse. Well, it’s impossible to know for sure, but economists suggest a housing crash is unlikely!

After all, there are still motivated buyers entering the market, which increases demand. Factors like below average inventory levels and increased demand will continue to support prices⁹

3. Regardless of your neighborhood, buyers are interested.

Since home prices have experienced rapid growth over the past few years, some buyers may be less choosy. In fact, determined ones might be willing to consider neighborhoods that don’t have easy access to highways or aren’t in close proximity to a big city. If you think you live in an unpopular neighborhood or believe your home isn’t what buyers are looking for, think again. Now may be your perfect time to consider selling.