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Today’s DFW buyer’s market offers advantages beyond the frenzied 2020-2022 period, which was marked by low interest rates but extreme competition. Today, buyers benefit from increased negotiating power and more options, offsetting the higher mortgage rates
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Today (Fall 2025): Negotiating power and increased inventory
| Benefit | How it works for you |
|---|---|
| Increased Inventory | DFW inventory has hit its highest level in over a decade, providing more choices than in the past. In the year leading up to July 2025, DFW saw the fourth-largest increase in active inventory among the largest metros. |
| More Negotiating Power | As homes spend more time on the market, sellers are more willing to offer concessions, which can include price reductions, covering closing costs, or rate buydowns. In August 2025, one in three Dallas-area listings had a price drop. |
| Less Competition | Buyer demand has softened due to higher mortgage rates, giving you more time to find and evaluate properties without the pressure of bidding wars. |
| Return to Normalcy | The market is transitioning from the overheated seller’s environment of recent years to a more balanced market, creating a more sustainable and stable purchasing environment. |
2020-2022: Low rates, high competition
| Benefit | Downside for buyers |
|---|---|
| Ultra-Low Mortgage Rates | While rates dropped to historic lows (below 3% in 2021), this triggered intense demand and a wave of buyers. |
| Rapid Home Appreciation | Home values appreciated at a rapid and unsustainable pace (some areas saw 30-50% growth), but buyers often had to overpay. |
| Extreme Buyer Competition | The low-rate environment and high demand led to frenzied bidding wars, often with dozens of offers per property. |
| Waived Contingencies | Buyers frequently had to waive contingencies, such as home inspections and appraisals, to be competitive. |
| Tight Inventory | Inventory fell to record lows, meaning fewer choices and less time to make a decision. |
The Verdict
While the low mortgage rates of 2020-2022 were attractive, they led to a hyper-competitive, overpriced market where buyers had little to no leverage. Today’s market, despite higher interest rates, offers more strategic benefits for the buyer. The increase in inventory, coupled with moderate price corrections, means you can take your time, have more choices, and negotiate a better deal.
