Featuring the perspectives of:

Steve Allcorn
General Manager, RE/MAX DFW Associates

Jason Bell
Vice President of Sales, Briggs Freeman Sotheby’s International Realty

Carol Drake
Managing Broker, United Real Estate

Ayoub Rabah
Regional President, Midwest, Coldwell Banker Realty

What do you expect for the overall housing market for 2025? Up, down or stable? Why?

Jason Bell: All indications point toward the North Texas housing market, particularly the DFW area, experiencing relative stability in 2025. After significant price appreciation during the pandemic years, housing prices in the area have leveled off this year. That may feel like a pullback to some, but it’s not. We’ve been used to 20%+ appreciation year over year, so when that slows to only 2-3%, it feels like a decline. We are just returning to normal. Anyone waiting for prices to come down will likely be waiting for a while.

The DFW area has long been insulated from national real estate trends due to the diversity of the job market and rapid population growth. We are not heavily reliant on any one industry, like oil and gas, technology, manufacturing, etc. We have it all. Companies from all over the globe continue to move to the area, providing a favorable balance to the real estate market.

The biggest unknown going into 2025 is interest rates. The industry got spoiled by historically low interest rates throughout the pandemic, which we are feeling the effects of now. Many homeowners refinanced their mortgages down to 3% or lower, and if they want to move, are now faced with rates in the 6-7% range. Those would-be sellers have to think long and hard about the financial impact of a move. Likewise, a buyer’s purchasing power is much less at 6-7% than it was at 3%, so we are experiencing a real squeeze on buyers, particularly first-time homebuyers.

Steve Allcorn: For the 2025 market, I see it stabilizing with the results from the election. The biggest factor will be the interest rates. We will be stable with rates averaging in the mid to low sixes. If rates go as low as the fives, we will see a major upswing.

Carol Drake: Predicting the Texas housing market for 2025 depends on several factors, including economic conditions, population growth, interest rates and housing inventory. Overall, a moderate price increase is a plausible expectation due to persistent demand pressures, but local conditions will vary across cities.

Ayoub Rabah: The 2025 market will come down to more choice. More choice for buyers and sellers in who will represent them in their transactions as well as more inventory choice for buyers. With market conditions such as interest rates and prices stabilizing a bit, we could see more negotiating power on the buy side. Inventory across nearly all price points is also expected to increase slightly. This, in turn, offers more options for homebuyers.

Sellers may need to reset their expectations to current market prices and conditions as we are seeing days on market times climb. A well-priced home, however, that shows well will still have the potential to get multiple offers.

What growth, if any, do you expect for your company next year?

Rabah: At Coldwell Banker, we foresee continued growth in the luxury real estate market — both nationally and in Dallas. In 2024, there was a record number of purchases completed in all cash, and this trend is likely to continue and possibly grow in 2025. Such deals give the buyer more negotiating power.

Allcorn: We are anticipating a 15-20% growth in agent count over the next 12-14 months.

Drake: Predicting growth for United Real Estate in 2025 depends on industry trends, market conditions and the company’s strategic initiatives. United Real Estate has been expanding rapidly in recent years by leveraging a technology-driven platform and focusing on agent recruitment. United Real Estate is well-positioned to grow driven by agent network expansion, increased transaction volume in high-growth regions, continued focus on technology and acquisitions.

What will be the biggest challenges for agents in 2025 and how can they overcome those challenges?

Rabah: With the election behind us, it removes uncertainty for some people and this will increase demand in the market. The agents who stay on top of the trends, are experts on their local markets and who have a multi-faceted marketing approach will be the agents who experience the most success.

Additionally, some 40% of residential transactions taking place in the DFW marketplace are currently new construction. Inventory levels are starting to rise, and we are seeing builders starting to offer attractive incentives for both buyers and buyer’s agents. This will put additional pressure on existing homes for sale on the market.

Allcorn: One of the biggest challenges to date and for the next year will be educating sellers and buyers about the changes in broker compensation disclosures, to meet the DOJ’s new requirements. We have been extremely proactive in training our agents every step as the lawsuit progressed. When the final ruling came out, our agents already had a solid understanding of the changes. RMDFW agents’ biggest challenge will be convincing sellers that very little has changed. Sellers now have more choices in their offer of compensation. Although more options are available, the traditional offering will still deliver the best outcome for them. Educated agents will be able to explain the complicated shell game between list price and compensation. Agent challenges for buyers will simply be helping them to understand that signing a buyer representation agreement was optional in the past but now is a requirement and needs to be addressed immediately.

Bell: That’s a great question. There is still a lot of competition among real estate agents. There continues to be an influx of new ideas, alternative brokerage models and a general challenge to how real estate is transacted. With that comes pressure to set yourself apart and create a brand or identity that shows your value to customers and attracts the clientele you desire to build your business around. The old saying, “A jack of all trades is a master of none,” comes to mind. Find your niche. Master it. Set yourself apart. Is that luxury? Is that farm and ranch? Is that new construction? Is that first-time homebuyers? It’s time to double down on what you do best!

That said, I firmly believe this has always been, and will always be, a people business. Invest in relationships. Lean into the people around you. More times than not, customers will choose to work with someone they know and trust over a stranger offering a “good deal.” Focus on building and strengthening relationships with your clients, past clients, friends and family. Those are the people who will use you time and time again AND refer you time and time again. You MUST stay in touch. Handwritten notes. The occasional text. A phone call. Meet for coffee. Every human being has an innate need to be heard and seen. I will forever believe that relationships matter most in this business.

Which DFW suburbs have the brightest housing outlook in 2025?

Allcorn: Growth in DFW tends to follow the school district’s size and ratings, coupled with new construction. The patterns tend to be North and Northwest. Northern markets in Celina, Prosper and McKinney, including smaller cities within. Northwest markets (Fort Worth) in Aubrey, North Fort Worth and Flower Mound with several more rural areas in-between.

Rabah: The city of Dallas has a lot of development happening. Fair Park, located right in the middle of the city, is experiencing a refresh as well as some mixed-use development coming into the area.

Frisco is one of the top five fastest growing communities in the entire country. Several major companies have moved headquarters to the Frisco area and this has been one of the contributing factors to the area’s boom. Plano, just 15 minutes from Frisco, is also expanding. Other suburbs, such as McKinney, Celina and Prosper, are also undergoing growth, and Coldwell Banker serves all these North Dallas markets.

Drake: Several neighborhoods and suburbs in the Dallas-Fort Worth area stand out due to favorable economic and development trends. Those include Frisco, Plano, and McKinney, which remain highly attractive due to ongoing job growth, particularly in the tech sector, and community expansions like Phillips Creek Ranch in Frisco. Home values in these areas are projected to grow steadily, around 3-4%, supported by strong demand and new residential developments. In addition, Prosper and Allen are benefiting from their proximity to corporate expansions (for example, Toyota and PepsiCo) and a focus on family-friendly amenities, making them popular for both buyers and investors. Southlake and Trophy Club continue to attract affluent buyers with excellent schools, luxury homes, and proximity to urban amenities while maintaining a suburban charm.

Check out this year’s other predictions below!