The Dallas, TX metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price has increased by 3.0% year-over-year, reaching $417,000. This upward trend in sales prices indicates a continued demand for homes, despite other indicators suggesting a cooling market.

Conversely, the median Price Per Square Foot has decreased by 1.4% year-over-year, now standing at $196.45. This decline suggests that while overall home prices are rising, buyers may be getting more space for their money compared to the previous year. The Median List Price has seen a modest increase of 1.1% year-over-year, now at $439,900, while the Median List Price per square foot has risen by 1.4% to $212.02.

Sales activity has slowed, with the number of Homes Sold decreasing by 6.9% year-over-year to 4,196 units. Pending Sales have also declined by 4.4% year-over-year, totaling 5,696. New Listings have seen a slight drop of 2.5% year-over-year, with 6,638 homes entering the market. Despite these declines, inventory has surged by 26.4% year-over-year, reaching 17,975 homes, contributing to a significant increase in the Months of Supply, which has risen by 110.0% to 4.3 months.

The Median Days on Market have increased by 17.0% year-over-year, now averaging 68 days. This suggests that homes are taking longer to sell, which could be attributed to the increased inventory and slower sales pace. The average sale to list ratio has slightly decreased by 0.3% year-over-year, now at 97.5%, indicating that homes are selling closer to their list prices.

The percentage of Homes Sold above list price has decreased by 3.9% year-over-year, now at 13.4%. This decline, coupled with a 5.8% increase in Price Drops, now at 32.5%, suggests that sellers may be adjusting their expectations in response to the changing market dynamics. Additionally, the percentage of homes going off the market in two weeks has decreased by 7.2% year-over-year, now at 26.2%, further indicating a slowdown in buyer urgency.

Overall, the Dallas metro area housing market in February 2025 reflects a shift towards a more balanced market, with increased inventory and longer selling times. While prices continue to rise, the pace of sales has slowed, and buyers appear to have more negotiating power than in previous years. This evolving market landscape will require both buyers and sellers to adjust their strategies accordingly.