Has the North Texas Real Estate Market Finally Hit Bottom?

For the past couple of years, the North Texas real estate market has been going through a major adjustment.

Higher mortgage rates, growing inventory, longer days on market, and more price reductions have created a much different environment than the frenzy we experienced just a few years ago.

But lately, we're starting to see something interesting:

The market may finally be showing signs of stabilizing.

Does that mean home prices are about to take off again? No.

Does it mean we've officially hit the bottom? Nobody can know that for certain until we can look back at the numbers months from now.

But there are some encouraging signs worth watching.

Inventory Is Still High — But That's Not Necessarily Bad

One of the biggest changes in North Texas has been the number of homes available for buyers.

For several years, buyers had very few choices. Homes would hit the market and sometimes receive multiple offers almost immediately.

That's certainly not the case today.

Buyers now have choices, and that's forcing sellers to compete for their attention.

The important change may be that inventory growth appears to be slowing rather than continuing to accelerate.

That's one of the things I watch when trying to determine whether a market is beginning to find some balance.

Home Prices Are Becoming More Realistic

We're also seeing sellers adjust to today's market.

A year or two ago, many sellers were still pricing their homes based on what their neighbor sold for during the peak of the market.

Buyers simply aren't playing that game anymore.

Today's buyers are educated, patient, and willing to wait for the right home at the right price.

Homes that are priced correctly and show well can still sell.

Homes that are priced aggressively can sit for weeks or months and eventually require price reductions.

The market is determining the price — not the seller.

That's actually a healthy development.

Buyers Have Negotiating Power Again

This is one of the biggest changes I've seen.

For buyers, purchasing a home isn't just about negotiating the sales price anymore.

Depending on the property and situation, we may be able to negotiate things like:

• Seller-paid closing costs
• Mortgage-rate buydowns
• Inspection repairs
• Home warranties
• Price reductions
• Other seller concessions

A few years ago, buyers were often waiving protections just to compete.

Today, they can actually negotiate again.

Mortgage Rates Are Still the Wild Card

The biggest obstacle remains affordability.

Mortgage rates are still substantially higher than the ultra-low rates buyers became accustomed to several years ago.

That's keeping some potential buyers on the sidelines.

But here's something important to remember:

When mortgage rates eventually decline, those buyers don't disappear — they come back into the market.

And if thousands of buyers begin shopping again at the same time, today's negotiating environment could change quickly.

That's why trying to perfectly "time the bottom" can be difficult.

What Does This Mean for North Texas Sellers?

If you're thinking about selling, today's market requires a different strategy than it did several years ago.

You can't simply put a sign in the yard, pick an optimistic price, and expect buyers to show up.

Price, condition, presentation, and marketing matter again.

The first few weeks on the market are especially important.

If buyers believe your home is overpriced, they may simply move on to the next one.

The homes that stand out — and are positioned correctly against their competition — are the ones most likely to get sold.

What Does This Mean for Buyers?

For buyers, this may actually be one of the more interesting opportunities we've had in several years.

You have more inventory to choose from.

You have more time to make decisions.

And in many situations, you have considerably more negotiating power.

Yes, mortgage rates are higher.

But a buyer who finds the right home today may be able to negotiate a better purchase price and seller concessions — and potentially refinance later if rates improve.

Remember:

You can refinance a mortgage rate. You can't renegotiate the price you paid for the house after closing.

So...Has the North Texas Market Hit Bottom?

Maybe.

There are certainly signs that the market is beginning to stabilize after a significant adjustment.

But I wouldn't make a real estate decision based on trying to predict exactly where the bottom is.

Instead, I would ask a much more important question:

Does buying or selling a home make sense for your life and financial situation right now?

Real estate is incredibly local. What's happening in McKinney may be very different from what's happening in Anna, Melissa, Sherman, Denison, Princeton, or another North Texas community.

Even two neighborhoods a few miles apart can behave completely differently.

If you're considering buying or selling, I'd be happy to take a look at your specific area and show you what the numbers are actually telling us.

Guy Arnold, REALTOR®
Arnold Homes Group
📞 (469) 247-5226

Your GO TO GUY for DFW Real Estate