Why Dallas Home Prices Are Softening & What’s Ahead

Dallas’ housing market is showing signs of shifting. After years of rapid appreciation, the pace is slowing, and price corrections are emerging in some segments. But softening doesn’t mean collapse—it’s part of the market cycle. In this article, we’ll explore the drivers behind the change and where the market may head next.

Factors Contributing to the Softening

• More homes listed (rising supply)

• Interest rate sensitivity — buyers pushing back when rates are high

• Caution among buyers amid economic uncertainty

How Far Could Prices Adjust?

• Some forecasts see continued declines over the next 12 months

• Which segments or neighborhoods are most impacted, such as overvalued, luxury, or fringe areas?

Safeguards & Strategies

• For buyers: pacing, appraisals, contingencies, benchmarking against recent sales

• For investors: focusing on properties with built-in margins, cash flow, or upside

• For sellers: avoid “testing the market” with overpricing; update, stage, incentivize

What Could Reverse the Trend?

• Lower mortgage rates

• Supply constraints (if new construction slows)

• Resurgent demand from population growth or relocation

If you're looking for a forecast for your street or neighborhood, I've got you covered. Let's chat about what this softening means for your real estate goals. Shoot me an email at anpeters@kw.com.