Plano just ranked among the top five cities in the nation for the steepest home price declines – and it's not alone. Across North Texas, home prices are falling, inventory is rising, and the market is shifting in buyers' favor.

Prices Decline Across North Texas

A recent SmartAsset study found that between 2025 and 2026, home values dropped in 70% of the 100 largest U.S. cities, declining by 1.04% on average. Plano landed in the top five nationally with one of the steepest one-year declines. Typical home values in Plano fell 5.1% from February 2025 to February 2026, going from $528,510 to $501,564 – a drop of over $25,000.

Other North Texas cities also had meaningful declines in home prices: Dallas down 3.79% to $305,523; Arlington down 3.41% to $307,792; and Fort Worth down 3.08% to $295,822.

Prices per square foot in North Texas have also trended downward. Between March 2025 and March 2026, the average price per square foot ($203.51) was down 2%, and the median price per square foot ($186.35) was down 3%.

Prices Are Still Up from Pre-Pandemic Times

Context matters. This is not a bubble collapsing or a market in distress – there's no cause to wait for rock-bottom prices. DFW home prices are still 32.4% higher than they were in 2021. The recent price drops are a market normalization.

Why Prices Are Softening

Rising inventory is the primary driver. The cooling in Plano reflects broader trends across North Texas, where increased inventory has put downward pressure on prices.

Between March 2025 and March 2026, active listings in North Texas rose by 3%, and inventory reached a 3.8-month supply. As between four and six months of inventory is considered a sign of a balanced market, this increase shows a move toward a sustainable environment compared to recent years.

What It Means for Buyers

In North Texas, inventory is up 3% year-over-year, and homes are sitting on the market longer than in recent years. Sellers are increasingly open to negotiating – on price, repairs, closing costs, and interest rate buydowns.

This combination of lower prices and motivated sellers may not last through the peak spring selling season. To take advantage of this window and explore your financing options, contact our team at (972) 591-3097 or connect with us online.