Home prices are expected to continue softening through 2025 and into 2026, particularly in markets like Austin and Dallas-Fort Worth.
Inventory levels are likely to remain elevated, giving buyers more options and creating a more balanced market.
Sellers may need to offer incentives to attract buyers in this competitive environment.
Mortgage rates are forecast to stay relatively stable, continuing to influence affordability and buyer demand.
As prices become more attractive, buyers on the sidelines may return, supporting a gradual market recovery.
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