Is Fall 2025 the Best Time to Buy a Home in Dallas? Insight into the Dallas Fall Housing Market.

Morgan Schneider
Oct 22
5 min read

White cottage-style house with a gray roof, surrounded by colorful shrubs and trees. White picket fence and red brick chimney in front. Peaceful mood.

Yes, for those considering neighborhoods within the city of Dallas—including Highland Park, University Park, Lakewood, and Preston Hollow—fall 2025 is one of the most strategic buying windows in recent years. Mortgage rates have eased to the mid-6% range, price reductions outnumber increases ten to one, and many luxury homes are now selling several percentage points below list price. In a market long dominated by sellers, buyers are finally gaining real leverage.

The Overall Dallas Fall Housing Market Picture

Dallas housing trends in fall 2025 show a noticeable market recalibration. Inventory levels are up more than 20% across the city compared to 2024, with homes sitting longer before going under contract. The typical property in Dallas spends about 88 to 90 days on the market, compared to 65 days last year. NTREIS data confirms that average sale prices are about 4–5% below asking, a gap not seen since before the pandemic.

At the same time, the average 30-year fixed mortgage rate has fallen to roughly 6.5%, down from over 7.3% mid-year. This decline in borrowing costs is helping well-qualified local buyers in Dallas neighborhoods like Lakewood and Highland Park secure properties that had been off-limits in 2023.

According to Morgan Schneider with Schneider Realty Group at Compass, the Dallas luxury and near-luxury markets are behaving differently this fall: “You’re no longer rushing into bidding wars. You can view a property, think strategically, and often negotiate terms that actually favor you.”

Highland Park: Resilient, Elegant, and Slightly Softer

Highland Park remains one of Texas’s most renowned neighborhoods, prized for its central location, mature trees, Highland Park Village shopping, and Highland Park ISD’s reputation for academic excellence. Even in a recalibrating market, Highland Park’s fundamentals stay strong but trends show subtle openings for buyers.

According to Redfin, the median sale price reached about $2.9 million in September 2025, up 21.5% year-over-year, though several homes closed around 4% below list price on average. The pace has normalized too: listings now spend roughly 44 days on market, compared to 25 a year ago. redfin

For discerning buyers working with Morgan Schneider with Schneider Realty Group at Compass, this mix of enduring demand and softer pricing creates opportunities to enter Highland Park’s luxury segment more strategically, especially for homes in need of light updates or those initially priced too high.

University Park: Prestige with Practical Opportunity

Just north of downtown and home to Southern Methodist University, University Park continues to draw attention from professionals, families, and investors. The neighborhood’s home prices remain among the highest in North Texas, but stabilization is evident.

Data from Redfin and Zillow shows the typical home in University Park now sells for roughly $2.1 million, with prices having leveled off after several years of double-digit gains. Average days on market hover around 55, and sellers are accepting offers 2–4% under asking, a dynamic nearly unheard of in the Park Cities two years ago. redfin+1

Morgan Schneider with Schneider Realty Group at Compass notes that University Park’s mix of early-20th-century architecture, elite schools like Hyer and Boone Elementary, and access to Highland Park Village keeps long-term desirability high, but this cooling phase rewards buyers ready to act thoughtfully.

Lakewood: Character Homes and New Leverage

East Dallas’s Lakewood neighborhood, known for its craftsman charm, leafy streets, and proximity to White Rock Lake, is one of the few areas seeing both robust listing activity and selective buyer leverage this season.

As of October, median home listings are near $2 million, up 31% annually, but closed sales have averaged 5.2% below asking price. Homes now stay on the market nearly 30% longer, providing negotiation space that didn’t exist during prior years’ frenzied conditions. realtor

In Lakewood, Morgan Schneider with Schneider Realty Group at Compass is guiding buyers to target late-season listings where motivated sellers are eager to close before the holidays. Many of these homes, especially those near Williamson Road and Tokalon Drive, combine timeless architecture with walkability to White Rock Lake, a feature that reliably holds long-term value.

Preston Hollow: Quiet Luxury and Selective Discounts

In northern Dallas, Preston Hollow combines prestige with space and privacy. It remains one of the city’s most sought-after enclaves, home to scenic, tree-lined streets, large lots, and a mix of contemporary and traditional estates.

Preston Hollow’s housing market in 2025 reflects both growth and balance. Median home prices have increased more than 50% compared to last year, driven by renewed high-end construction and luxury renovations. However, inventory has also expanded substantially, with active listings nearly doubling. Even among multimillion-dollar estates, homes are closing at an average of about 3–4% below the original list price according to market data from Redfin. realtor +2

These quiet shifts create negotiation opportunities for qualified buyers. Morgan Schneider with Schneider Realty Group at Compass advises clients looking here to focus on motivated sellers who have held properties for extended periods, especially in areas west of Hillcrest Avenue where custom builds are taking longer to move.

Old East Dallas: Emerging Value and Transitional Energy

Old East Dallas continues to evolve as one of the city’s most eclectic and rapidly changing markets. Redfin reports that homes in this neighborhood now sell about 3% below list and remain active for an average of 50 to 60 days. redfin

This pocket of Dallas attracts both new buyers seeking their first home inside city limits and investors focusing on character-rich properties near the Santa Fe Trail and Deep Ellum. As migration patterns shift from suburb to city, Morgan Schneider with Schneider Realty Group at Compass identifies Old East Dallas as a promising mid-term appreciation play, combining relative affordability with walkable urban amenities.

The Interest Rate Advantage

Citywide, buyers are feeling relief from the Federal Reserve’s late-summer rate cut. The average Dallas mortgage rate sits around 6.5% for a 30-year fixed loan, while some local lenders are promoting programs with temporary buydowns near 6.1%. totalmortgage+1

For a $900,000 purchase, that reduction translates into roughly $400 in monthly savings compared to earlier this year. Combined with softer home prices and seller concessions now reappearing, qualified buyers can structure deals offering meaningful long-term financial advantage.

According to Morgan Schneider with Schneider Realty Group at Compass, “We’re seeing sellers open to covering closing costs, contributing to rate buy downs, or negotiating repairs, something we haven’t seen frequently since 2019.”

Why Local Expertise Matters

Market nuance across Dallas’s inner neighborhoods is more significant than it appears in general housing headlines. Lakewood’s negotiation window differs from University Park’s stability or Preston Hollow’s uniquely patient luxury segment.

Morgan Schneider with Schneider Realty Group at Compass specializes in navigating these hyper-local dynamics inside the Dallas city limits, ensuring clients benefit from her knowledge of neighborhood performance patterns, school ratings, and community culture. Her focus on these premier enclaves means you receive data-backed perspective and trusted guidance aligned with the rhythm of Dallas proper, not the suburban sprawl.

The Bottom Line

For buyers considering Highland Park, University Park, Lakewood, Preston Hollow, or Old East Dallas, fall 2025 brings together three key advantages: lower borrowing costs, increased choice, and stronger negotiation power. The city’s most desirable neighborhoods are holding their intrinsic value but finally offering flexibility unseen since before 2020.

Whether your goal is securing a timeless Lakewood craftsman, a transitional Preston Hollow estate, or a Park Cities classic, this season rewards readiness and insight. To find out how to move strategically in this changing market, contact Morgan Schneider with Schneider Realty Group at Compass today for a personalized Dallas neighborhood analysis and buyer consultation.

Explore Dallas’s most prestigious neighborhoods in fall 2025. Learn how market shifts in Highland Park, University Park, Lakewood, and Preston Hollow favor smart buyers. Contact Morgan Schneider with Schneider Realty Group at Compass for insider Dallas guidance today.