Texas Housting Market Predictions for 2025

At Texas United Mortgage, we’re always keeping an eye on market trends to help you make informed decisions about buying or selling a home. Let’s dive into what real estate experts are predicting for the 2025 Texas housing market.
1. Lower Interest Rates Could Boost Home SalesWhile mortgage rates won’t return to the historic lows of 2021, they’ve stabilized since their sharp increases in 2023. If rates remain steady in 2025, we could see a surge in market activity.
According to Jef Conn, chairman of Texas REALTORS®, "Lower interest rates have made buyers and sellers more comfortable with entering the market." Lower rates mean greater affordability, leading to more buyers house hunting and more sellers listing their homes.
2. Home Prices Should Stay StableHome price growth in Texas has slowed, and as of Q3 2024, prices have even dipped slightly in 9 of 26 metro areas. Currently, the market has about 4.8 months of inventory, and historically, four to five months indicate a balanced market. As long as supply continues to meet demand, prices should remain steady throughout 2025.
3. Homes May Take Longer to SellWith increasing inventory, sellers will face more competition, and buyers will have extra time to decide. "We have seen listings taking longer to sell, so homes need to be market-ready and priced well in order to attract an offer," Conn noted. This shift gives buyers more options and flexibility than in previous years.
Will the Texas Housing Market Crash?The short answer: No. If you’re holding out for a market crash, you might be

 waiting indefinitely. A market crash requires a massive oversupply of homes, which isn’t expected anytime soon. While market shifts are natural, Texas’ housing market remains strong.
Should You Buy or Sell in 2025?The key to deciding whether to buy or sell isn’t just about market conditions—it’s about your financial readiness. Here’s what to consider:
For Buyers: Ensure you’re debt-free, have an emergency fund covering 3–6 months of expenses, and save for a strong down payment. Ideally, putting 20% down avoids private mortgage insurance (PMI), but first-time buyers can start with 5–10%.
For Sellers: Be financially prepared for your next move and make sure your home is competitively priced and market-ready.
While industry experts often push minimal down payments and high loan approvals, financial stability is key to long-term success. At Texas United Mortgage, we want to help you make informed choices that align with your financial goals.
Get Expert Mortgage GuidanceWhether you're considering buying or selling in 2025, our team at Texas United Mortgage is here to help. Contact us today to explore your options and navigate the housing market with confidence.