We're roughly six months into 2026, and for the first time in about half a decade, "the DFW market" actually requires more than one sentence to describe. For five years it was easy: prices up, inventory down, multiple offers, get over it. That market is gone. The market we have right now is more nuanced, more honest, and — if you know what to look for — full of opportunities that didn't exist a year ago.
If you're a buyer trying to decide whether now is the time, a seller wondering if you missed the window, or just a homeowner watching your neighbors' for-sale signs and wondering what's going on out there, this is the mid-year check-in. The data is fresh. The picture is clearer than it's been in a while. Let's walk through it.
Where Prices Actually Sit Right Now
The median single-family home in DFW closed somewhere between $385,000 and $395,000 in the first quarter of this year, depending on the source and the snapshot date. Year-over-year, that's a soft drop of roughly 1 to 2 percent. Not a crash. Not a correction in any dramatic sense. A gentle slope down from a peak that, frankly, had to give a little.
The forecasts most economists at the Texas Real Estate Research Center are putting out have the median sliding a little further through summer — possibly into the $375,000 range — before stabilizing in the second half of the year. The phrase being used in the trade press is "DFW's price correction is largely complete." What that means in practice is that the air has come out of the most overheated submarkets, and the price you see in May is reasonably close to the price you'll see in December.
The interesting story is not the metro-wide median. It's how different submarkets are behaving inside it.
Allen, Plano, and the strongest school-driven submarkets in north Collin County are still moving fast — homes in those zip codes that are properly priced and presented sell in the teens of days. Frisco is a mixed story; new-build supply is heavy and resale is competing against builder incentives. North Fort Worth has its own version of the same dynamic — significant new construction, aggressive concessions, and a buyer pool that has more options than it used to. Aledo, Burleson, the further reaches of Crowley and Northwest ISD — those markets have softened more visibly, with longer days on market and more price reductions, but they're also where the value plays are.
The Inventory Picture
For the first time since 2019, DFW has real inventory.
Active resale listings hit around 25,000 to 36,000 across the metro depending on which counting method you use, and the trend has been up steadily for fifteen months. Resale months-of-supply is sitting around 5.6 — economists consider four to six months "balanced," meaning neither buyers nor sellers have a structural advantage. New construction inventory is leaner at about 4.2 months, which makes sense — builders are calibrating starts more carefully than they did in 2022.
By county, the spread is interesting: Tarrant is tighter at around 3.2 months, Collin is around 3.6 months, and Rockwall has stretched to 5.1. Anywhere over five is meaningfully tilted toward the buyer.
That additional inventory is showing up in the numbers buyers care about most. Days on market across DFW is averaging in the high 50s — call it 57 on average — up sharply from the 22-day average we saw a year ago in peak spring. Roughly one in five active listings has had a price cut, and the median cut is about $35,000. Sellers are negotiating. Sellers are paying closing costs. Sellers are throwing in rate buydowns and warranty plans and small repair allowances that they would have laughed at in 2022.
The Rate Situation, As of This Week
The 30-year fixed mortgage rate has spent most of 2026 between 6.0 and 6.6 percent. As of late May, the prevailing average has been hovering around 6.5%, with the 15-year fixed running about 5.85% and the typical adjustable-rate mortgage near 5.67%.
The Federal Reserve held its target funds rate at 3.50–3.75% through the spring, and the market spent much of May trying to read the tea leaves on whether the June FOMC meeting would deliver the first rate cut of 2026. Whatever the Fed actually decided in mid-June, the mortgage rate response is usually muted in the short term. Mortgage rates follow the 10-year Treasury more closely than they follow the Fed funds rate directly, and the spread between the two has held around 1.8 to 1.9 percentage points — squarely within normal range. Translation: expecting any single Fed announcement to drop mortgages back to 5% is wishful thinking. Rates are going to chop in a narrow band around 6.3 to 6.5 for most of the rest of the year unless something macro really breaks loose.
The math on a typical DFW purchase is what most buyers actually want to know. A $400,000 home with 20% down at 6.5% on a 30-year fixed runs about $2,023 a month in principal and interest. Add Tarrant or Dallas County property tax — usually somewhere between $400 and $700 a month, depending on the specific city and any homestead exemption — and homeowners insurance around $100 to $150 a month, and you're at full PITI of roughly $2,500 to $2,700 a month. A half-point swing on the rate — to 6.0% — drops that P&I to about $1,799, a savings of about $224 a month. A half-point the other way — to 7.0% — pushes it to $2,661, a $638 jump. Rates matter. They are also no longer the only thing that matters.
