As we step into 2025, many homeowners and buyers in Flower Mound are asking: Is now the right time to make a move? With shifting home prices, mortgage rates, and inventory levels, it's crucial to understand what’s happening in the market before making a decision. In this post, we’ll break down expert predictions from a national level down to the Dallas-Fort Worth metro area, then locally right here in Flower Mound. 

In closing, we’ll share our own insights and predictions on what we expect to see in the months ahead. As well as what to do now if you want to make a move this year.

*Watch the video below for all the details. For a short summary, continue reading.

National Housing Market Outlook

Before we zoom in on Flower Mound, let’s look at the bigger picture. National trends set the stage for what happens in our local market.

Home Prices

Experts predict that home prices will rise by around 3% in 2025. This is a shift toward a more stable market compared to the rapid price increases of the past few years. While the frenzy of 2021-2022 has settled, most markets are still experiencing steady appreciation.

Mortgage Interest Rates

Mortgage rates are expected to hover around 6.5%, remaining higher than pre-pandemic levels but more stable than the dramatic fluctuations seen in recent years. While the Federal Reserve has signaled potential rate cuts, it’s uncertain whether mortgage rates will follow suit.

Housing Inventory

The number of homes for sale is projected to increase by 11.7%, meaning buyers will have more options. However, inventory levels are still below where they were before the pandemic, so competition may remain in certain price points.

Key Takeaway: The market is becoming more balanced in some areas, but affordability and inventory challenges will continue to shape buying and selling decisions.

Dallas-Fort Worth Real Estate Predictions

Now, let’s narrow our focus to the DFW metro area, where demand has remained strong due to job growth and migration.

Home Prices in DFW

Prices in DFW are expected to increase by 3-5%, slightly outpacing the national average. With a strong economy and continued population growth, the area remains attractive to both homebuyers and investors.

Market Activity

Dallas-Fort Worth has been named one of the top real estate investment markets in 2025. With steady appreciation and affordability compared to coastal markets, demand is expected to stay high.

Inventory Trends

Inventory levels are rising but still tight in key areas. While more listings will hit the market, move-in-ready homes in desirable neighborhoods will remain competitive. In the luxury market ($1M+), homes are sitting longer, while properties priced under $600K are moving faster.

Key Takeaway: The DFW market remains strong, but price growth is slowing. Buyers may have more choices, but well-priced homes in desirable areas will still see competition.

Flower Mound Housing Market: What to Expect in 2025

Finally, let’s get hyperlocal and focus on what’s happening right here in Flower Mound.

 Home Prices in Flower Mound

• Flower Mound home values are down on average almost 8% from this time last year. But looking at the home prices over the last 5 years is shocking. Home prices have increased on average over $250,000!

• Homes are selling on average at about 96% of the listed price. 

• Homes are sitting on the market on average for 60 days before selling

• Months of inventory is at 1.7, which means it’s still a seller’s market

Inventory & Market Activity

• Active listings or homes for sale are up 6% year over year

• Move-up buyers are driving demand in the $750-$1M range, which we believe is why there is limited inventory in that price band.

• Homes with modern updates are still moving fast.

Buyer & Seller Behavior

• Buyers want value—updated kitchens, home offices, and energy-efficient features are top priorities.

• Sellers who price correctly are still getting top dollar, but overpricing can lead to extended days on market.

Key Takeaway: Flower Mound remains a desirable market, but strategy is more important than ever. The right pricing and home preparation will be key to a successful sale.

Our 2025 Predictions for the Flower Mound Market

Based on expert forecasts and what we’re seeing in the market, here’s what we expect for Flower Mound in 2025:

✅ Home prices will rise, but at a slower pace – Expect a 2-4% increase as demand stays steady.

✅ Mortgage rates will influence market activity – If rates drop below 6-6.5%, we expect a surge in buyer activity.

✅ Inventory will remain tight in the best neighborhoods – Homes in communities with sought-after amenities, as well as  modern updates will still see competition.

✅ Move-up buyers will drive the market – growing families upgrading to larger homes will be the primary force in the market.

✅ Pricing strategy will be critical for sellers – Overpricing could lead to longer days on market, while competitive pricing will attract serious buyers.

What Should Buyers & Sellers Do in 2025?

For Buyers: Get pre-approved now so you can jump on opportunities. Be flexible and patient.

For Sellers: Prep your home properly—updates and pricing strategy will be key to getting top dollar.

If you’re thinking of buying or selling in Flower Mound this year, now’s the time to strategize. Book a call with us at the link below.