Will Dallas Home Prices Go Down in 2026?

If you’ve been wondering whether home prices in Dallas will drop in 2026 — you’re not alone. It’s one of the questions I’m asked most often by both buyers and sellers across the Dallas–Fort Worth area.

As a longtime Dallas Realtor® and D Magazine Platinum Top Producer, I’ve helped clients navigate every type of market — from the bidding wars of 2021 to the more balanced pace we’re seeing today. Let’s look at what’s really happening, what experts predict for 2026, and how it affects your next move.

The Short Answer: No Major Price Drop Expected

Despite what some headlines suggest, there’s no sign of a housing crash in Dallas. Most forecasts show our market remaining steady to slightly appreciating through 2026 — with prices expected to rise between 2% and 4% depending on location, property type, and price range.

That means while we may not see the double-digit growth of recent years, Dallas home values are holding strong thanks to solid local fundamentals: population growth, job creation, and ongoing corporate relocations.

In short — the market is cooling, not collapsing.

Why Dallas Remains One of the Strongest Markets in the U.S.

Dallas continues to attract national attention as one of the most resilient real estate markets in the country. Here’s why:

1. Population & Job Growth

The DFW metroplex adds over 100,000 new residents per year, fueled by major employers like Toyota, Goldman Sachs, and Charles Schwab relocating or expanding here. More people means more demand for housing.

2. Strong Economic Diversity

Dallas isn’t dependent on a single industry. Our economy spans tech, healthcare, finance, education, and energy — creating a healthy, stable foundation for long-term housing demand.

3. Relative Affordability

Even with rising prices, Dallas homes remain far more affordable than coastal markets like Los Angeles, San Francisco, or New York. Buyers from those areas continue moving here for more space, lower taxes, and a higher quality of life.

4. Inventory Is Normalizing, Not Oversupplying

Yes, we’re seeing more listings hit the market, but not enough to create downward pressure across the board. Dallas still has only about a 3- to 4-month supply of homes — a balanced, sustainable level.

Where Prices Might Soften

Not every pocket of Dallas will perform the same.

• Highly desirable neighborhoods like the M Streets, Lakewood, Preston Hollow, and parts of East Dallas should remain strong, with modest appreciation in 2026.

• Fringe or developing areas may see slight dips if new construction outpaces demand.

• Luxury listings ($2 million +) could take longer to sell simply due to a smaller buyer pool.

As always, location, price, and presentation will determine your outcome.

What This Means for Sellers

If you’re thinking about selling in 2026, this is a year for strategy, not guesswork.

• Price smartly from day one. Overpricing can push you into longer days on market.

• Stage and market beautifully. Today’s buyers shop visually — professional photos, video tours, and strong online exposure are essential.

• Partner with an agent who knows your micro-market. A Lakewood craftsman and an Oak Lawn townhome require two completely different marketing approaches.

My average list-to-sale ratio remains strong, even in today’s market — proof that strategy beats timing.

What This Means for Buyers

Buyers finally have breathing room again — and opportunity.

• More inventory means more choices and negotiating power.

• Sellers are motivated, especially those who bought before rates rose.

• Dallas remains a smart long-term investment. Owning in a high-growth metro offers both stability and future equity.

If rates drop later in 2026, we could easily see another surge in demand. Now is the window to buy before that next wave hits.

The Data I Watch

To keep my clients ahead of the curve, I monitor:

• Days on Market by ZIP Code

• List-to-Sale Ratios

• Inventory Levels by Price Tier

• Price-Per-Square-Foot Trends

• Mortgage Rate Movements

• New Construction Starts

• Job Growth & Relocation Announcements

By analyzing this data weekly, I help clients make decisions based on facts — not fear.

The Bottom Line

The Dallas real estate market in 2026 is shifting toward balance, not decline. Home prices may flatten slightly in some areas, but the overall trend remains stable and strong.

Whether you’re buying your first home, selling a luxury property, or building an investment portfolio, the key is working with a Realtor® who understands how Dallas really works — street by street, ZIP code by ZIP code.

 Ready to Talk Strategy?

I’d love to help you understand what this market means for your property or goals.