DFW Home Prices Have Dropped: Here Are the Main Reasons Why

Some forecasters expect the downturn in prices to continue for a while.

New data confirm that home prices in the Dallas-Fort Worth-Arlington metro area have declined over the past year. And they might have further to fall.

Here are five things to know about this ongoing trend:

1. DFW home values have declined due to more homes on the market and fewer buyers.

2. High mortgage rates, slower migration, and job cuts are reducing buyer demand.

3. Inventory has significantly increased, giving buyers more choices and negotiating power.

4. The market has shifted to favoring buyers, with many homes selling below asking price.

5. The outlook for prices is mixed, with some forecasts predicting stabilization or slight increases, while others suggest continued downward pressure.

This report examines the main factors that are putting downward pressure on DFW home prices—and what the future might hold.