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Texas Housing Insight August 2025 Summary

This image presents four key real estate market indicators, each accompanied by a percentage change and a directional arrow. The first section shows "August Home Sales" with a blue upward triangle and a value of 3.5% year-over-year (YOY) increase. The second section, "Home Price Index," features a blue downward triangle and a value of 0.5% YOY decrease. The third section, "Active Inventory," shows a blue upward triangle and a significant 23.6% YOY increase. The fourth and final section, "Single-Family Permits," displays a blue downward triangle, indicating an 8.1% year-to-date (YTD) decrease. Each metric is clearly labeled, and the percentages use brown text for emphasis, while the directional arrows and timeframes are in blue, making it easy to compare trends at a glance.

August typically marks the tail end of the peak spring/summer homebuying season, with activity slowing following the surge from April through July. In that regard, this August is no different, posting fewer sales than the prior month. However, year over year (YoY), August sales made another solid monthly gain to widen the lead over last year’s levels and outpace national trends. 

Despite affordability pressures from elevated mortgage rates, Texas home sales have posted YoY gains for the past three consecutive months. On the supply side, high inventory continues to exert pricing pressure on sellers. This sustained increase in transaction volume suggests that both buyers and sellers are actively adjusting their expectations in response to market dynamics. 

Inventory declined in August, reflecting a notable slowdown in new listing activity. A part of a typical seasonal softening, new listings tapered sharply since summer, though they remain in line with last year’s pace. However, active inventory is still significantly higher than it was at this time a year ago. 

While overall inventory is contracting due to fewer new listings, August saw divergent inventory trends across price tiers. From July to August, inventory in the entry level and more affordable segments (homes under $350,000) continued to expand, reaching a new high for the current market cycle. In contrast, inventory in the higher-priced tier (above $600,000) declined sharply, while the “move-up” market ($350,000-$600,000) saw a modest pullback. These uneven inventory patterns reflect the disproportionate affordability challenges facing many first-time buyers.  

Home prices continue to cool broadly through summer, though the pace of the decline varied by region. Statewide, average home prices weakened for a second consecutive month. As the market transitions into fall and winter, continued downward pressure on home prices is expected as sellers grow more motivated. 

August Posts Another Monthly Gain, Extending Lead Over Prior Year

The image shows a data table titled “August 2025 State & National Sales,” comparing real estate market figures for Texas and the United States. The table lists five columns: Closed Sales, Year-over-Year (YoY) Change, Year-to-Date (YTD) Change, Median Price, and Pending Sales YoY. For Texas, there were 30,187 closed sales, a 3.5% YoY increase, a 1.0% YTD increase, a median price of $335,000, and a 5.4% YoY increase in pending sales. For the U.S. overall, closed sales totaled 376,000, which is a YoY decrease of 0.8% and a YTD decrease of 1.2%, with a higher median price of $422,600 and a 3.8% YoY increase in pending sales. The negative percentages in the national row are shown in red to highlight declines. The table uses alternating white and gray backgrounds for the state and national rows, with column headers set against a dark gray background for clear separation.

Notes: The sales numbers reflect actual sales, not seasonally adjusted.
Source: Texas REALTORS and National Association of REALTORS data (accessed at Haver Analytics)

In August, Texas recorded 30,187 closed home sales—including both new and existing homes—accounting for 8 percent of all U.S. home sales that month. Year to date (YTD), the state’s share stands at 8.4 percent.

  • August posted the third straight month of sales growth with a 3.5 percent YoY increase, following gains of 4.1 percent in July and 7.4 percent in June. YTD, home sales grew 1 percent. 
  • Pending home sales in August were up 5.4 percent YoY, signaling sustained momentum going into the fall.  
  • August’s median home prices were $335,000, softening from the previous month ($339,000) and August 2024 (also $339,000). 
  • Nationally, seasonally unadjusted home sales declined 0.8 percent YoY, with YTD sales trailing 2024 levels by 1.2 percent. The median home price of existing single-family homes was $422,000, up from $414,200 in August 2024. 
  • (Not shown) Regionally, YoY sales were down 4.4 percent in the West and 2 percent in the Northeast, remained flat in the Midwest, and rose 0.6 percent in the South. Year-to-date, sales were down considerably at 8.3 percent in the West and 1.4 percent in the South, while increasing 1 percent in the Northeast and 0.2 percent in the Midwest. 

Monthly Market Snapshot: August Sales and Inventory Trends

This image displays a table titled “Housing Market Indicators,” breaking down key metrics for August 2025, August 2024, and August 2019. The first section, labeled “Sales Activity,” contains figures for average days on market, turnover rate, median seller price cuts, and the sale-to-list price ratio. In August 2025, homes sat on the market for 63 days, had a turnover rate of 18.6%, a median seller price cut of $15,350, and a sale-to-list price ratio of 0.95. By comparison, homes in August 2024 sold faster (56 days), with a higher turnover rate (22.2%), lower seller price cuts ($13,000), and a slightly higher sale-to-list price ratio (0.96). The data from August 2019 shows even shorter market times (54 days), the highest turnover rate (28.1%), modest price cuts ($6,900), and the highest sale-to-list ratio (0.97). The second section, titled “Active Inventory,” compares months’ supply and average days on market for each year. In August 2025, supply increased to 5.6 months with homes available an average of 92 days, while previous years had lower supply and fewer days (4.7 months and 84 days in 2024, 3.7 months and 87 days in 2019). The table uses alternating gray and white backgrounds for better readability, and organizes the years in columns for easy side-by-side comparison.

Notes: The turnover rate is calculated as pending sales divided by inventory, where inventory is the average of month-beginning and month-end inventory
Source: Texas Real Estate Research Center analysis of Data Relevance Project and Texas REALTORS data

  • In August, homes sold averaged 63 days on the market, resulting in an inventory turnover rate of 18.6 percent—down from 22.2 percent a year earlier. Normally, turnover rates hovered around 30 percent with some seasonal fluctuations. 
  • August’s median seller price cut increased to $15,350, up from $14,900 in July and $13,000 a year earlier. As the summer selling season wound down, sellers appeared more motivated to close deals.  
  • The median sale-to-list price ratio was 0.95, indicating homes typically sold for 5 percent below asking price.  
  • Month-end active inventory in August stood at a 5.6-month supply. In Texas, a three- to four-month supply is generally considered indicative of a more stable and balanced market.  
  • As of August, active listings averaged 92 days on the market, compared to a 63-day average for properties that have sold. 

Active Inventory Falls Amid Marked Slowdown In New Listing Activity

The image is a bar graph titled “Inventory Down in August,” with a subtitle noting that new listing activity has cooled sharply since summer. The graph tracks monthly data from January to August, comparing two metrics: August active inventory, shown in blue bars, and August new listing activity, represented by green bars. The blue bars, indicating active inventory, show a steady increase from about 120,000 units in January to a peak of around 160,000 units in July and August. In contrast, the green bars for new listing activity fluctuate but are noticeably lower than the active inventory, rising from about 45,000 units in January, peaking between March and May at about 60,000 units, and then declining again in July and August to roughly 50,000 units. The graph visually demonstrates that while active inventory increased over the months, new listing activity has dropped at the end of summer, supporting the key message in the figure caption.

Source: Texas Real Estate Research Center analysis of Data Relevance Project, Texas REALTORS data

  • Active inventory expanded steadily from January through July, growing by one-third (33.6 percent) over the period. This sustained inventory growth led to significantly improved supply conditions during the peak spring and summer homebuying season.  
  • Meanwhile, new listings peaked between April and May (around 60,000 units) and have been tapering off through the summer months. By August, new listings declined to just under 50,000, largely reflecting a seasonal softening. 
  • With new listing activity cooling sharply since summer, active inventory fell in August, down 1.1 percent from July’s peak. By month’s end, active listings totaled 156,468. 
  • Active inventory remains significantly higher (23.6 percent) than last August, while new listing activity is roughly in line with August 2024 levels.  

More Expensive Homes Lead August Inventory Decline

This bar chart is titled “August Inventory Trends Diverge by Price Tier” and highlights how supply has risen for lower-priced homes while higher-priced listings have declined. The graph compares July active inventory, shown in blue bars, with August active inventory, shown in green bars, across five price brackets: below $250,000, $250,000–$350,000, $350,000–$600,000, $600,000–$800,000, and above $800,000. For homes below $250,000, inventory increased by 1.5%, and for the $250,000–$350,000 tier, it rose by 1.1%. In contrast, inventory in the $350,000–$600,000 range dropped by 1.8%, while both the $600,000–$800,000 and above $800,000 tiers saw declines of 4.7%. The chart visually emphasizes that supply is growing for more affordable homes (with green bars slightly taller than blue), but contracting for higher-priced homes, where green bars are shorter than blue. Percent change values are shown above each pair of bars for quick reference, and the x-axis clearly labels the different price categories.

Source: Texas Real Estate Research Center analysis of Data Relevance Project and Texas REALTORS data

  • While overall inventory declined, August saw divergent trends across different price tiers, indicating uneven sales activity.  
  • From July to August, inventory in the lower-priced segments continued to expand, with listings under $250,000 rising by 1.5 percent and those between $250,000 and $350,000 increasing by 1.1 percent. This uptick likely reflects persistent affordability pressures facing many first-time homebuyers.  
  • The “move-up” markets—those with a price between $350,000 and $600,000—showed a modest decline of 1.8 percent. August sales volume was the weakest for this largest price segment, consistent with weak demand and pressures from affordability constraints. 
  • Inventory of the higher-price tiers saw sharp declines, driven by a significant pullback in new listing activity as well as strong buyer demand. Sales activity has been most robust in the highest price range, with homes priced above $800,000 leading in YoY sales gains.

TRERC HPI: Texas and Regional Home Price Trends

The image is a bar chart titled “Texas Home Prices on Mild Declines Through Summer,” illustrating monthly percentage changes in home prices across several Texas regions—Austin, DFW (Dallas-Fort Worth), Houston, San Antonio—and for the state overall. The bars represent June, July, and August 2025, with each month shown in a different color (blue for June, green for July, and orange for August). Austin shows the largest declines, with both June and July dropping by -3.5% and August by -2.8%. DFW sees smaller but steady drops: -0.2% in June, -0.6% in July, and -1.0% in August. Houston prices remained flat in June, then fell by -0.6% in July and -0.7% in August. San Antonio declines were moderate at -0.3% in June, -0.4% in July, and -0.9% in August. Across Texas as a whole, prices were unchanged in June, but then declined by -0.4% in July and -0.5% in August. The visual makes it clear that all major cities and the state overall experienced mild price declines over the summer, with Austin seeing the sharpest drops.

Source: Texas Real Estate Research Center analysis of Data Relevance Project and Texas REALTORS data

  • Amid ongoing inventory pressures, home prices continue to cool broadly across the Texas housing market, although the pace and intensity of the decline varied by region. Statewide, home prices declined for a second consecutive month in August, following a flat reading in June. 
  • Austin continues to post the largest and most consistent price declines, although easing slightly to 2.8 percent since June and July. As of August, home prices in the city have dropped 20 percent from the spring/summer 2022 peak levels.  
  • DFW, Houston, and San Antonio each posted moderate price declines driven by elevated inventory and weak buyer activity. As the market transitions into fall and winter, continued downward pressure on home prices is expected, especially as sellers grow more motivated.  

Local Housing Market Indicators 

This image features a comprehensive table titled “Metro-Level Home Sales, August 2025,” outlining monthly real estate sales performance for metropolitan areas across Texas. The table is organized into five columns: Texas Metros, Monthly Sales, Year-Over-Year (YOY) Sales Percentage, Year-To-Date (YTD) Sales Percentage, and Median Price. Major metro areas such as Austin-Round Rock-San Marcos, Dallas-Fort Worth-Arlington, Houston-Pasadena-The Woodlands, and San Antonio-New Braunfels are printed in bold text for easier navigation. Austin-Round Rock-San Marcos reports the highest median price in the table at $440,000, while Houston-Pasadena-The Woodlands shows robust sales with 7,965 transactions and an 8.6% increase YOY. Dallas-Fort Worth-Arlington holds the largest sales volume at 8,167. Certain regions, such as Abilene and San Angelo, demonstrate significant YOY sales growth—33.3% and 35.0% respectively—whereas others, including San Antonio and Sherman-Denison, show negative YOY percentages highlighted in red to indicate decreases. The rural area and some metros have smaller sales counts but trends that vary from slight increases to substantial drops, with red text for negative changes and black for positive or neutral. At the bottom, a summary row for Texas states totals: 30,187 monthly sales, up 3.5% YOY and 1.0% YTD, with a median price of $335,000. The formatting uses alternating background shading to help distinguish rows and provide clear comparison between regions.

Source: Texas Real Estate Research Center analysis of Data Relevance Project and Texas REALTORS data

This image is a detailed table titled “Metro-Level Inventory, August 2025,” displaying housing inventory indicators for various metropolitan regions across Texas. The table has five columns: Texas Metros, Active Listings, Active Listings Year-Over-Year Percentage (YoY%), New Listings YoY%, and Months’ Supply. Each metro area is listed in a bold or normal font, with major regions like Austin-Round Rock-San Marcos, Dallas-Fort Worth-Arlington, Houston-Pasadena-The Woodlands, and San Antonio-New Braunfels highlighted in bold for quick reference. The data shows considerable variation by region. For example, Houston leads with 40,007 active listings, a 32.0% annual increase. Several metros, such as Texarkana and Tyler, have the strongest percent growth in inventory, above 38%. In contrast, Abilene and Amarillo show inventory declines, with Abilene down by 13.2% YoY, highlighted in red text to indicate a negative trend. New listings mostly show small growth, but some regions—like Odessa, Lubbock, and Wichita Falls—experienced double-digit declines in new listings, also marked in red. Months’ supply, indicating the balance of inventory versus sales pace, ranges from as low as 2.6 in Odessa up to 9.4 in Eagle Pass, with the average for Texas at 5.6 months. At the bottom of the table, summary figures for Texas show an overall active listing count of 156,468, up 23.6% YoY, but only a 1.0% increase in new listings. Alternating row colors and use of bold text provide clear visual structure for comparison across metros.

Source: Texas Real Estate Research Center analysis of Data Relevance Project and Texas REALTORS data

This image displays a table titled “Single-Family Housing Permits, August 2025,” detailing permit activity in metro areas throughout Texas. The table is organized into five columns: Texas Metros, Year-to-Date Units, Year-over-Year Percentage (YoY%, YTD), Permit Unit Value for August, and Unit Value YoY%. Major metro areas are highlighted in bold print, including Austin-Round Rock-San Marcos, Dallas-Fort Worth-Arlington, Houston-Pasadena-The Woodlands, and San Antonio-New Braunfels. The data reveals notable trends: several areas experienced declines in permit activity, with negative YoY percentages highlighted in red—for example, Dallas-Fort Worth-Arlington is down 13.1%, Houston-Pasadena-The Woodlands down 7.9%, and San Antonio-New Braunfels down 16.6%. Abilene and San Angelo stand out with significant increases in year-to-date units: up 83% and 51.5% respectively. Median permit unit values for August vary, from $191,265 in Brownsville-Harlingen to a high of $331,933 in Lubbock. The “Unit Value YoY%” column shows mixed results, with some metros posting positive gains while others, like Texarkana and Laredo, post double-digit declines. At the bottom, overall Texas figures reveal 101,906 year-to-date permits, an 8.1% annual decrease, with a median unit value of $293,328, roughly flat year-over-year at -0.2%. The table uses alternating background shades and red text for negative statistics, making it easy to compare trends and highlight areas of concern or growth among the different regions.

Notes: Permit value is builder estimated construction costs of the residential structure, excluding land acquisition costs.
Source: Survey of New Construction of U.S. Census Bureau

Source: Texas Housing Insight | August 2025 | Texas Real Estate Research Center (by Yanling Mayer)

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