At L&P, we know that keeping up with the 2025 housing market update and knowing these Q1 2024 real estate trends like the back of our hand can lead to impactful decision-making on behalf of our clients. With constantly changing inventory levels, interest rates, and price changes, L&P is attuned to how buyers and communities alike are impacted, and we are here to help explain the impact these factors have had on the Texas housing market.
Q1 2025 Real Estate Trends:
Home Prices
Statewide, comparing Q1 of this year to Q4 of 2024, Texas saw a 0.3% Increase in median home price, growing to $331,000. The largest majority of homes sold throughout the state last quarter were in the $200,000-$299,999 price range, with over 27% of homes falling into this pricing category. This includes nearly 25% of homes falling in the $300,000-$399,999 price range, which means that over half of the homes sold in Q1 are in the $200,000-$400,000 range.
Diving deeper into some of the larger metropolitan areas within Texas for Q1 2025 real estate trends, we see a similar 2025 housing market update. Median home prices in Dallas-Fort Worth-Arlington MSA (up 0.5%), Houston-Pasadena-The Woodlands MSA (up 1.4%), and College Station-Bryan MSA (up 1.6%) all saw an increase in median home prices. While throughout the state we saw an increase in median home prices, several large metropolitan areas, including Austin-Round Rock-San Marcos MSA (down 2.1%), San Antonio-New Braunfels MSA (down 0.3%), and Waco (down 5.9%), saw a decrease in the median home price.
Additionally, in Texas, 11.5% of homes were sold above listing price, which is near the lowest point since 2020. Pair this with the fact that 28.2% of homes had a price drop during the time it was listed compared to 26% the year before, means that sellers are having trouble attracting enough buyers at the beginning listing price and are making the shift to accommodate buyers more than they were at this time last year.
Inventory and Active Listings
The amount of active listings on the market can greatly influence whether it is a buyer’s or seller’s market. Compared to Q1 of last year, active listings throughout the state of Texas are up 30.7%, to over 150,000 active listings, the most of any in a month in at least the last 5 years. Paired with this, January 2025 also saw the highest number of months of supply on the market in the last 5 years, with nearly 6 months of inventory to begin the year.
With both active listings and months of inventory available at recent highs, builders, developers, and homeowners now have the most competition they’ve had since the pandemic. These Q1 2025 real estate trends mean buyers now have more options on the market to choose from and can spend more time evaluating their options before deciding to purchase a home. These factors encourage buyers to have more choices, less buying competition, and more time to decide than they have in the past.
Interest Rates
30-year mortgage interest rates in Q1 of this year have stayed between 6%-7%, as they have the past few years. Buyers financing a house may feel that this percentage is too high and may wait to try and get a better rate when purchasing a home, but with the current supply on the market, it looks like lenders are unlikely to lower rates and encourage buyers anytime soon.
L&P Marketing and 2025 Housing Market Update for Q1
L&P Marketing works closely with developers and builders to understand the market and how pricing, inventory levels, interest rates, and consumer behaviors impact home sellers. With this knowledge, we can accurately adjust marketing efforts and communication with buyers based on tendencies we are seeing within the residential real estate industry. To learn more about how L&P utilizes these trends to make informed resolutions to its home-selling clients, contact us today!
