The Amarillo real estate market in May 2025 continued to reflect a balanced, yet subtly shifting environment for both buyers and sellers. While home prices remain strong, there are signs of softening demand and growing inventory—factors that could influence strategies moving into the summer months.
đź“Š Key Highlights
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Median Sales Price: The median home price rose to $244,000, marking a 2.1% increase from the previous month. This moderate rise indicates that property values are still appreciating, albeit at a more sustainable pace than we saw in previous years.
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Total Homes Sold: Only 277 homes were sold, which represents a .4% decrease in total sales. This slight dip could reflect buyer hesitation due to interest rates, affordability concerns, or simply a cooling seasonal demand.
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Days on Market: The median number of days on market increased to 84, up 5% from the prior period. Homes are staying on the market slightly longer, which may suggest a shift in negotiating power back toward buyers in certain segments.
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Inventory: A notable development is the 17.1% increase in housing supply, which now sits at 4.1 months of inventory. While still under the 6-month benchmark that typically signals a balanced market, this increase gives buyers more choices and eases some of the competitive pressure.
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List-to-Sale Price Ratio: Sellers are receiving approximately 95.9% of their original list price, down slightly by 0.3%. This may be an early indicator of a softening market, where buyers are negotiating more and sellers may need to be more flexible with pricing.
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New Listings: There were 474 new homes listed in May, a 2.4% increase, contributing to the rise in overall inventory. This increase in supply could help stabilize prices if buyer activity doesn’t pick up at the same pace.
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Price per Square Foot: The median price per square foot rose to $150, a 3.4% increase. This shows continued value appreciation even as transaction volume dips.
🧠What This Means for Buyers & Sellers
For buyers, this could be a promising time to explore the market. More listings and longer days on market mean more options and better negotiating power. While prices are still rising, the pace has slowed, making it easier to plan long-term.
For sellers, it’s important to stay competitive. Pricing your home accurately from the start, preparing it well for showings, and being open to negotiation can make all the difference in today’s market climate.
💬 Let’s Talk Strategy
Whether you’re looking to buy your first home, upgrade, downsize, or sell, understanding these trends is key to making informed decisions. Want to talk about how this market update applies to your goals? Reach out—we’re here to help!