Ellis County Texas Housing Market: A Mid-2025 Deep Dive

As of late June 2025, the housing market in Ellis County, Texas, presents a dynamic picture, characterized by price reductions, increasing inventory, and the persistent influence of mortgage rates. For both prospective buyers and sellers, understanding these nuances is key to navigating this competitive yet evolving landscape.

Prices Continue Their Ascent, Albeit Moderated

Ellis County continues to see an appreciation in home values, though the pace has somewhat moderated compared to the fervent activity of recent years. In May 2025, the median sale price of a home in Ellis County reached approximately $427,000, representing a 6.3% increase year-over-year. The median listing home price was slightly higher, around $464,500, but showed a slight decrease of 2.9% year-over-year. This disparity between listing and sold prices suggests a market where buyers are gaining a bit more leverage. The median listing price per square foot was around $192.

Looking at May 2025 data, different bedroom configurations saw varying price changes year-over-year:

• 1-bedroom homes saw a decrease of 11.1%.

• 2-bedroom homes increased by 5.3%.

• 3-bedroom homes remained relatively flat, with a 0.4% increase.

• 4-bedroom homes saw a solid 5.5% increase.

• 5-bedroom homes experienced the strongest growth at 7.3%.

This indicates a strong demand for larger family homes, while smaller properties might be facing less competitive pressure.

Inventory on the Rise, Offering More Choices

One of the most significant shifts in the Ellis County market is the notable increase in housing inventory. In May 2025, there were 1,612 homes for sale in Ellis County, a 5.9% increase from April 2025. While this is still not an oversupply, it marks a crucial departure from the extremely tight inventory seen in previous years. Realtor.com reported over 4,300 homes for sale in Ellis County as of May 2025, with 43 newly listed in the last week, further emphasizing the growing supply.

This expanded selection translates into more options for buyers and potentially less intense bidding wars. However, it's worth noting that the total listing count has seen a slight decrease (around -1.72% year-over-year in May 2025), even as active listings have increased (up 7.95% year-over-year). This suggests a dynamic where homes are selling, but new listings are not always keeping pace with overall demand.

Days on Market and Market Competitiveness

Homes in Ellis County are spending a bit more time on the market than they did a year ago. The median days on market in May 2025 was 51 days according to one source, while another indicated 67 days, up from 52 days last year. This increase in time on market, combined with homes selling for approximately 2% below asking price on average, points towards a buyer's market in Ellis County as of May 2025. This means that the supply of homes is currently greater than the demand.

However, the competitiveness can vary by specific zip code. For instance, the 76065 zip code (Midlothian) showed a "somewhat competitive" market, with homes selling for about 1% below list price and going pending in around 83 days in May 2025.

The Enduring Impact of Mortgage Rates

Mortgage rates continue to be a dominant factor shaping the housing market, both nationally and in Ellis County. While 30-year fixed mortgage rates have pulled back from their peak in late 2023, they still hover near 7%. This is significantly higher than the sub-3% rates seen in early 2022, creating affordability challenges for many potential buyers.

Elevated mortgage rates reduce buyers' purchasing power, leading some to delay their homeownership plans or adjust their budget downwards. This directly contributes to the moderation in price appreciation and the increase in days on market. For homeowners who locked in low rates in previous years, there's a strong incentive to stay put, which can further constrain the supply of existing homes for sale.

A Look Ahead: What to Expect

The consensus among real estate experts suggests that the DFW Metroplex, including Ellis County, might see a price correction in 2025, potentially in the range of 10-20%. This is primarily attributed to sustained higher interest rates and the growing inventory levels. As buyers face affordability constraints and sellers contend with more competition, concessions are becoming more common.

However, Ellis County's inherent appeal – including its strong population growth, diverse employment base, and relative affordability compared to denser urban centers – will likely continue to attract residents. The county's real estate assessed values are also up overall by 3% in 2025, signaling underlying strength.

For Buyers: This could be a window of opportunity. With increasing inventory and potentially more motivated sellers, negotiating power is shifting in your favor. Exploring new construction properties, which often come with incentives, can be a smart move. Don't shy away from making offers, even on resale properties, as sellers are more open to concessions.

For Sellers: Patience and flexibility are key. Be prepared to potentially make concessions to attract buyers. Understanding the current market dynamics, including the longer days on market and the likelihood of selling slightly below asking, will be crucial for a successful transaction. The concessions you make on your sale might be recouped when you purchase your next property.

In conclusion, the Ellis County housing market is in a period of adjustment. While price growth has cooled and inventory is increasing, it remains a desirable area. The interplay of mortgage rates, supply, and demand will continue to shape the market in the coming months, offering both challenges and opportunities for those looking to buy or sell in this thriving North Texas community.

Whether you want to buy or sell a home, our team of professional realtors can help you navigate these changing market trends.