What most people don’t know about the Rockwall Real Estate Market (May 2025 Update)

Hey there—let me ask you something:

What happens when the market doesn’t behave the way it’s “supposed” to?
Because that’s exactly what we’re seeing in Rockwall County right now.

Inventory is up, prices are… also up? Some areas are cooling off fast, while others are somehow heating up. Builders are shaking up everything with incentives, and the resale market is feeling the squeeze.

So whether you're actively in the market or just trying to make sense of what your home's worth, this update will help you understand what’s really going on—and why it matters.

Let’s start with inventory—because that’s where the biggest shift is happening.

Compared to this time last year:

• Inventory in Rockwall County as a whole is up 42.9%

• In the city of Rockwall, it’s up 69.1%

• In Heath, it’s up 48.4%

• And in Fate, it’s actually down 7.6%

So… is the market balanced now? Sort of—but not exactly.

The old rule was that 6 months of inventory meant a “balanced” market. But what we’ve learned over the last few years is that 4 to 6 months feels more balanced in practice.

• Under 4 months? Still a seller’s market

• Over 6 months? Now we’re talking buyer’s market

Let’s apply that to our main Rockwall County submarkets

Fate is looking great as far as months of supply. They’re actually down almost 20% from last year and only have 3.7 months of inventory.

The city of Rockwall has 6.1 months of inventory and is up a whopping 60.5% in inventory compared to this time last year.

Heath. Oh man. Heath is a story all to itself. In Heath, we currently have 10.4 months of inventory. My data goes all the way back to 2003 and there is no time that we’ve seen these kind of inventory levels in Heath.

So if you’re a buyer who’s felt beaten up by crazy competition over the last few years, this might finally be your moment.

Now, with inventory way up, you'd expect prices to go down. But that’s not what we’re seeing—at least not across the board.

Rockwall County overall is actually up 1.2% year-over-year, with a median price of $420,000.

City of Rockwall? Prices are up a staggering 36.6% year-over-year to a median of $585,000—which defies all logic at first glance.

Fate, where inventory is tighter, actually saw prices drop 4.7% to about $380,070. That may be driven in part by builders offering deep incentives, which pull down the value perception of nearby resale homes.

And Heath, where inventory is overflowing, saw prices fall 15.5% to $748,500—which is exactly the kind of market reaction you’d expect with that much supply.

Would it surprise you to learn that homes are taking longer to sell now?

Across Rockwall County, the median days on market is now 56, which is nearly double what it was this time last year.

The good news? That number has been trending down since January, which could be an early sign of buyer activity picking back up.

And remember—median means half of homes are selling faster… but the other half? They’re lingering.

Now let’s talk about the elephant in the room: new construction.

Builders are shaping this market more than people realize—especially when it comes to pricing power and incentives.

One of their biggest levers? Interest rate buydowns.
Here’s why it matters:

The general rule of thumb is that for every 1% drop in mortgage rates gives a buyer about a 10% increase in purchasing power. So if a builder offers a 5.99% fixed rate instead of 6.99%, that’s $42,000 more buying power on a $420,000 home.

And if you're a seller competing with those builder homes—especially when your prices are similar and you don’t have incentives—that could explain why you’re not getting traction.

Also, new construction is everywhere:

29% of current listings in the city of Rockwall are new builds

30% of current listings in Heath are new builds

And 36% of homes listed on the market in Fate are new construction homes.

And that’s just what’s on the MLS. Builders often have even more inventory that isn’t publicly listed yet.

So… back to that question: What happens when the market doesn’t behave the way it’s supposed to?

It creates opportunity—for some—and confusion for everyone else.

If you’re a buyer, especially in Heath or Rockwall, this may be your best shot in years to negotiate strongly and avoid bidding wars.

If you're a seller, it means strategy matters more than ever. Pricing, presentation, timing, and understanding how your home compares to new builds could make or break your sale.

And if you're just trying to keep tabs on your biggest asset—your home—understanding these shifts helps you make smart decisions when the time is right.

If we haven’t met yet, I’m Jennifer Templeton. I’m a Realtor and Broker Associate here at Keller Williams Rockwall. I like to make sense of the market—without the jargon or hype—so you can make smart, confident decisions about your biggest investment.

So, if there’s something about our local real estate market that’s confusing, surprising, or just plain weird, let me know. I’d love to dig into it in a future video—drop your question in the comments or shoot me a message.