Dallas, TX Housing Market Update – MARCH 2026
Reporting Period: Feb 1–Feb 28, 2026 • Data via NTREIS
Dallas proper is a city of contrasts in almost every way — and its housing market is no exception. February's numbers tell a story of quiet softening at the top, rising inventory across the board, and a buyer pool that's gaining ground after years of being outmaneuvered. None of the shifts are dramatic, but together they paint a picture of a city gradually redistributing leverage between buyers and sellers.
Key Highlights | Dallas Housing Market Update
- Median Sale Price: $410,000 (↓ 1.2% YoY)
- Closed Sales: 681 (↓ 3.5% YoY)
- Active Listings: 3,816 (↑ 10.3% YoY)
- Months of Inventory: 4.7 (↑ 0.6 months YoY)
- Median Days on Market: 66 (↑ 8 days YoY)
- Median Price per Sq Ft: $233.22 (↓ 2.9% YoY)
- Close-to-Original List Price: 93.8%
PRICES
The Dallas median sale price came in at $410,000 in February — a modest 1.2% dip from a year ago. Price per square foot slipped to $233.22, down 2.9% year over year. Neither number signals a correction; they reflect a market where buyers are doing more deliberating and sellers who overpriced are adjusting. The price distribution tells an interesting story too — the $200–$299k range led active inventory at 18.9%, while the $500k–$749k band held a surprisingly robust 17.6% share of closings. That breadth suggests demand remains healthy across multiple price points, even as the median itself edges lower.
SALES ACTIVITY
With 681 closed sales in February — down 3.5% from the same month last year — transaction volume is holding reasonably well for a winter month in a city this size. Homes are taking longer to move, averaging 66 days on market (up 8 days from last February), and total time from listing to close reached 95 days. That's a full 10 days more than a year ago. The message to sellers is clear: the urgency that once compressed Dallas timelines to a matter of days is no longer the operating assumption. Buyers are deliberating, and the market is accommodating that pace.
INVENTORY
This is where the real shift is happening. Active listings in Dallas reached 3,816 in February — a 10.3% increase year over year. That's a meaningful expansion of choice for buyers navigating one of Texas's most storied urban markets. Months of inventory climbed to 4.7, pushing Dallas solidly into balanced-to-buyer-leaning territory by conventional benchmarks. Buyers who've been waiting for more selection — and more negotiating room — are finding it. The question now is whether that inventory expansion continues into the spring or whether seasonal demand absorbs the surplus.
MARKET BALANCE
At 4.7 months of supply and a close-to-list ratio of 93.8%, Dallas is operating in a notably more balanced environment than it has in years. That 93.8% figure mirrors the DFW metro average — meaning buyers in Dallas proper are extracting roughly the same concessions as buyers across the broader region. Homes in the $1M+ range accounted for 15.9% of closed sales, a reminder that Dallas's luxury market remains active. But across price bands, the tone has shifted — negotiation is a real part of the transaction again, and sellers who treat their pricing as non-negotiable are often learning otherwise.
What Sellers Need to Know
- Active listings are up 10.3% year over year — you're competing in a more crowded field, and first-impression pricing matters more than ever.
- Homes are averaging 66 days on market; buyers are not in a rush, and an overly ambitious list price will sit longer and likely close lower.
- The close-to-list ratio of 93.8% means you can expect offers in that range — sellers who price with that reality in mind tend to transact faster.
- The $500k–$749k band and the $1M+ segment remain active — if your home competes there, condition and presentation are your strongest differentiators.
What Buyers Need to Know
- 3,816 active listings means you have genuine options — this is not the scarcity-driven market of 2021 or 2022, and you have time to be selective.
- At 4.7 months of inventory, Dallas leans toward balance — and negotiation on price, repairs, or concessions is increasingly on the table.
- Homes are spending 95 days total from listing to close — use that extended timeline to do your due diligence without feeling rushed.
- The median year built is 1977 — older Dallas neighborhoods require careful inspection budgeting; don't waive due diligence protections in this market.
2026 Dallas Housing Market Forecast
Dallas enters spring 2026 with more inventory and more buyer leverage than it's had in several years — a meaningful shift for a city that spent much of the early 2020s as one of the most competitive markets in the country. If active listings continue to climb toward or past 4,000, the balance of power could tilt more decisively toward buyers before the traditional spring surge arrives.
Pricing at the median level is likely to remain stable within a narrow band. The composition of what sells each month — particularly the mix of older, smaller properties and higher-end urban homes — will continue to create month-to-month variability that doesn't necessarily reflect individual property value movement.
If mortgage rates ease even modestly in the second half of 2026, sidelined buyers could re-enter with enough force to absorb the current inventory surplus and tighten conditions again. For now, this is a market that rewards preparation and patience — on both sides of the transaction.
Source: NTREIS MLS (Feb 1–Feb 28, 2026) with February 2025 comparison metrics from the Texas REALTORS® Data Relevance Project, in partnership with the Real Estate Center at Texas A&M University.
Ready to buy or sell in Dallas? The Dunnican Team works across the city and knows what the data means for your specific situation. Contact us today to talk through your options.
