The Houston, TX metro area housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes stands at $325,000, reflecting a slight decrease of 0.5% year-over-year. In contrast, the Median List Price has increased by 2.8% to $359,900, indicating a divergence between seller expectations and actual sale prices.

Price Per Square Foot metrics show modest changes, with the median Price Per Square Foot at $162.29, up by 0.2% from the previous year. The Median List Price per square foot has risen more significantly by 3.9% to $176.43, suggesting that sellers are pricing homes higher on a per-square-foot basis compared to last year.

Sales activity has slowed, with 6,004 Homes Sold, marking a 5.6% decline year-over-year. Pending Sales have dropped even more sharply by 15.3%, totaling 7,267. New Listings have decreased slightly by 1.8% to 9,847, while inventory has increased by 11.6% to 26,478 homes. This rise in inventory, coupled with a 70% increase in Months of Supply to 4.4 months, indicates a shift towards a more balanced market, potentially favoring buyers.

The Median Days on Market have increased by 6% to 61 days, suggesting that homes are taking longer to sell compared to last year. The average sale to list ratio has decreased slightly by 0.5% to 96.3%, indicating that homes are selling for slightly less than their list prices. The percentage of Homes Sold above list price has also decreased marginally by 0.2% to 11.9%.

Price reductions are more common, with 34.8% of listings experiencing Price Drops, up by 5% from the previous year. Additionally, the percentage of homes going off the market within two weeks has decreased by 2.5% to 26.2%, further highlighting the slower pace of sales.

Overall, the Houston housing market in February 2025 is characterized by a cooling in sales activity and a rise in inventory, leading to longer selling times and more price adjustments. While sellers are listing homes at higher prices, the actual sales prices are slightly declining, reflecting a market in transition.