L&P Marketing prides itself on keeping up with the current housing market, and specifically the housing market in the Texas area. As most of our clients are located within Texas, keeping up with inventory levels, median home prices, and closed sales numbers is important not only for our knowledge of the industry but also to help us make informed decisions about what is best for our clients. Our Q2 2025 housing market update provides valuable insights into these trends, ensuring we continue to guide clients with the most accurate and timely information available.
Q2 2025 Real Estate Trends:
Home Prices
Statewide, comparing Q2 of this year to Q2 of 2024, Texas saw a 1.4% decrease in median home price, shrinking to $340,000. The largest majority of homes sold throughout the state last quarter were in the $200,000-$299,999 price range, with 26.7% of homes falling into this pricing category. The second largest selling home price was between $300,000-$399,999, with roughly 24% of all home purchases being in this price point. While over 50% of all homes in Texas last quarter were sold between $200,000-$400,000, home prices sales of at least half a million dollars accounted for nearly a quarter of all Texas home sales this month.
Diving deeper into some of the larger metropolitan areas within Texas, we are seeing a drop in median home prices in the larger metropolitan areas, while lower population areas are seeing an increase in median home prices. Austin/Round Rock/San Marcos MSA (-2.1%), Dallas/Fort Worth/Arlington MSA (-1.2%), and Houston/Pasadena/The Woodlands MSA (-1.2%) all saw decreases in the median home price compared to Q1. Even though MSAs such as Beaumont/Port Arthur (+2.3%), College Station/Bryan (+3.2%), and San Antonio/New Braunfels (+1%) saw increases in median home price compared to last quarter, their MSA sizing is smaller than those that saw median home prices fall, so the overall state median home price decreased 1.4% compared to last quarter.
Inventory and Active Listings
L&P, as well as home prices, also closely monitors inventory levels, as we know the supply on the market can greatly influence buyer tendencies and time to purchase for home builders. With more inventory on the market, buyers tend to spend more time weighing their options and can judge which builders and communities are most right for them.
Compared to Q2 of last year, active listings throughout the state of Texas are up 27.8%, to over 160,000 active listings. This means there is more inventory that stays on the market longer, as in Q2 2025, there was an average of 5.7 months’ worth of inventory on the market at any given time. In Q2 2024, this number was around 4.5 months, meaning that the active supply of homes is outpacing the demand.
These Q2 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 a longer buying cycle, as homebuyers will want to shop around for products that best fit them. Builders have noticed this high supply on the market and are trying to differentiate themselves amongst the competition with unique value propositions and incentives, to drive more homebuyers toward their products
Interest Rates
30-year mortgage interest rates in Q2 of this year have stayed between 6%-7%, as they have the past few years. With extended supply on the market, buyers may choose to go with builders that offer them lower interest rates, as many homebuyers feel the rates are currently too high, and may be expecting a rate decrease in the near future. This expectation of a rate decrease may cause buyers to pause in their homebuying journey and wait for a rate that is better suited for their finances.
L&P Marketing & Q2 2025 Housing Market Update
L&P Marketing works hard to ensure it is as up to date as possible on the housing market to make informed strategic decisions to the benefit of our clients. At L&P, knowledge and statistically-based decisions allow us to optimize digital campaigns to more accurately target, serve, and educate potential buyers. To learn how our industry expertise can help with your real estate marketing, contact us today!
