Texas’ housing market continued to soften in February 2025, with home sales sliding to their slowest February pace since 2019, according to the latest data from the Texas Real Estate Research Center. A combination of high mortgage rates and economic uncertainty has pushed many buyers to the sidelines, leading to a 4.5% year-over-year decline in statewide sales.
Just over 23,000 homes were sold across Texas in February, a figure that reflects not only the affordability challenges buyers face but also a more cautious outlook amid broader economic headwinds. Year-to-date, home sales have declined 2.3% compared to the same period in 2024.
At the same time, inventory surged to 124,070 active listings — up nearly 29% from a year ago — marking the 13th consecutive month of rapid year-over-year inventory growth. This increase has pushed supply levels roughly 35% above pre-pandemic norms, fundamentally reshaping the market dynamic.
While the growing inventory offers buyers more choice and time, it also highlights a demand shortfall. The months’ supply of homes climbed to 4.4 in February, compared to 3.5 a year ago. Homes are also staying on the market longer, with the average days on market reaching 50, up from 44 days in February 2024. Inventory turnover, a measure of how quickly homes are selling, dropped to just under 14% — down significantly from 20% the year prior.
In Dallas-Fort Worth, recent data suggests the local market is facing similar slowdowns. According to the April 2025 Texas New Home Sales Report from HomesUSA.com, DFW recorded 1,738 new home sales in March, down 2.8% from 1,788 in February. The average Days on Market rose to 148.47 from 144.91.
“Dallas and Fort Worth new home sales continued to reflect market recalibration in March, despite some improvement in interest rates,” said Ben Caballero, founder and CEO of HomesUSA.com. “While seasonal expectations are typically higher this time of year, pending sales activity indicates the potential for increased transaction volume in the coming months.”
Pending sales in DFW rose 12% month-over-month to 2,534 in March, with statewide pending sales across the four largest metros (DFW, Houston, Austin, San Antonio) increasing to 6,965 from 6,150. This suggests that while current conditions remain challenging, buyer interest has not disappeared.
The median statewide home price in February stood at $328,000, slightly down from $332,700 a year earlier. Price movements varied by region: Fort Worth-Arlington posted the highest annual appreciation at 2.7%, while Austin saw prices drop 1.4%. Houston has now logged 16 straight months of annual gains above 2%.
In DFW, the average new home price fell to $479,298 in March, down from $494,145. “The sales-to-list price ratio in DFW held at 97.70%,” the report noted, “indicating pricing remains close to listing values.”
Statewide, year-to-date building permits are down 6.7%, as concerns over materials, tariffs, and economic outlook weigh on construction plans. Still, Texas leads the nation in new home construction, maintaining a competitive edge in affordability.
