Amarillo Market

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Amarillo Area Housing Market Commentary

YTD June 30, 2025

Closed Sales

The Amarillo housing market held steady throughout the first half of 2025, with 1,559 closed sales, a slight 0.60% increase from the 1,550 sales recorded by this time last year. In the second quarter alone, 908 single-family homes closed—up from 885 during Q2 2024.

Single-Family Home Prices

The average sales price for a single-family home year-to-date climbed to $283,064, representing a 3.32% increase over the same period in 2024. The median sales price saw a marginal decrease, dipping slightly to $247,000 from $247,500 a year ago.

For a more refined analysis, the Texas A&M Real Estate Center’s Home Price Index— which uses paired sales to better reflect true price appreciation—reported a 6.4% year-over-year increase for Q1 2025. Historically, this index has shown an average appreciation rate of 4.91% over the past decade.

Days on Market

Homes are taking a bit longer to sell compared to last year. The average days on market during Q2 2025 was 109 days, up from 101 days in 2024. Similarly, median days on market increased to 71 days, compared to 66 days one year ago. These figures are calculated from list date to closing date.

Sales Price to List Price Ratio

Homes in the Amarillo MSA sold for an average of 98.00% of their list price in Q2 2025, up from 97.25% in the same quarter last year.

Months of Inventory

As of June 30, 2025, the months of inventory stood at 3.51 months, based on 1,061 active listings and 908 sales in Q2. This is up from 3.35 months of inventory in Q2 2024. 

Listing Inventory

The number of active single-family listings as of June 30, 2025, was 1,061—an increase of 73 listings (or 7.39%) compared to the same time last year. This gradual rise may offer more options for buyers moving in the second half of the year.  The growth in inventory is contributing to increased downward pressure on home prices.

Building Permits

New construction activity declined in the first half of 2025. The City of Amarillo issued 209 single-family building permits—a 20% drop from the 262 permits issued during the same period in 2024. Additionally, 230 on-site sewer facility permits were issued through mid-2025, down from 251 during the same timeframe last year.  Residential on-site sewer facility permits indicate new construction activity outside the city limits in Potter and Randall counties. 

Foreclosure Activity

Foreclosures remain low—a positive indicator of homeowner stability and overall economic health. Through June 30, 2025, there were 53 foreclosures recorded in Potter and Randall Counties, down from 67 a year ago.

Unemployment and Job Growth

Amarillo’s job market continues to support the local housing economy. According to the Texas Workforce Commission, the Amarillo MSA had a non-seasonally adjusted unemployment rate of 3.1% in March, ranking it as the second lowest among all Texas metro areas. The February 2025 rate was 3.3%, well below the state (4.3%) and national (4.5%) averages. Over the past year, employment in the region grew by 2,700 jobs, a 1.96% increase.

Interest Rates

As of June 26, 2025, the average 30-year fixed mortgage rate stood at 6.77%, slightly down from 6.86% at the same time in 2024, according to Freddie Mac. This small decline may offer some relief for buyers navigating affordability concerns. At the same time, rising homeowner’s insurance costs continue to be a significant hurdle to affordability. These increasing premiums—driven by broader regional and national trends—are impacting monthly housing costs and narrowing the pool of qualified buyers, particularly among first-time homebuyers.

Sources

·       Amarillo Association of Realtors® MLS

·       Texas A&M Real Estate Center

·       City of Amarillo Building Safety & Environmental Health Departments

·       Texas Workforce Commission

·       Amarillo Foreclosure Report

·       Freddie Mac

*Amarillo MSA includes Armstrong, Carson, Oldham, Potter, and Randall Counties