If you’ve been keeping an eye on the housing market, you’ve likely noticed a shift in recent months. After years of soaring prices and bidding wars, the market is finally starting to cool down—and Texas is feeling the chill. In fact, four of the ten U.S. cities where home prices are falling the fastest are in Texas, according to a recent report from The Daily Mail.
While this may be welcome news for homebuyers who were priced out during the boom, it’s also sparking concern about what’s next—especially with fears of a possible recession still looming in the background.
A Personal Look Back: Wichita Falls Then and Now
Not long ago, it was nearly impossible to find a decent rental or affordable home in Wichita Falls, even for newcomers moving in for work. Just a few years ago, one of our new radio station employees struggled for weeks to find housing—and he was nearly forced to move to a nearby town just to have a roof over his head.
Compare that to ten years ago, when my wife and I bought our home here. The process was simple, with homes available in nearly every neighborhood. Fast forward to today, and while our home has nearly doubled in value since 2013, the rising property taxes and overall market tension make that gain feel less rewarding if you’re not planning to sell.
But that may be changing soon.
For Sale Signs on the Rise
Over the last six months, “For Sale” signs have become more common in Wichita Falls, signaling that the housing market is finally easing up. More listings, longer days on market, and fewer bidding wars suggest that we’re slowly entering a buyer’s market.
That said, fewer people are actually buying homes right now—not because of high prices, but because of economic uncertainty. With talks of a recession still on the table, many are hesitant to make a long-term investment like buying a house.
4 Texas Cities Where Housing Prices Are Dropping Fastest
The Daily Mail recently named the 10 U.S. cities where home prices are falling the fastest, and Texas dominated the list:
1. San Antonio, TX
2. Austin, TX
3. Dallas, TX
4. Fort Worth, TX
These cities have seen steep declines in home prices over recent months. Once among the hottest housing markets in the country, they are now cooling rapidly as buyer demand drops and inventory increases.
Full List of Cities in the Report:
- Jacksonville, FL
- San Antonio, TX
- Montgomery County, PA
- Oakland, CA
- Austin, TX
- Portland, OR
- Dallas, TX
- Sacramento, CA
- Orlando, FL
- Fort Worth, TX
What’s Causing the Price Drops?
Several factors are contributing to this shift:
- Higher mortgage interest rates are making monthly payments harder to afford, pushing buyers to the sidelines.
- Wage growth hasn’t kept up with the cost of living, reducing purchasing power.
- Fear of a coming recession is making people cautious about major financial decisions.
- Overbuilding in certain areas has led to increased supply, causing prices to fall.
These conditions are combining to put downward pressure on housing prices—even in markets that were once booming.
Should You Buy a Home Now?
If you’re in a position to buy and plan to stay long-term, now could be a smart time to start looking, especially in areas like San Antonio, Austin, or Fort Worth where prices are dropping. However, if you’re uncertain about your income stability or are worried about economic changes, waiting might be the safer option.
Buying a home during a cooling market can save you money—but only if you’re financially ready and not planning to move again soon.