The Texas housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing and sales activity. The Median Sales Price has decreased by 4.3% year-over-year, settling at $335,600. This decline contrasts with the Median List Price, which has increased by 7.1% to $361,500, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics reveal a more stable picture, with the median Price Per Square Foot experiencing a modest increase of 0.4% to $174. Meanwhile, the Median List Price per square foot has risen by 4.1% to $190, suggesting that sellers are optimistic about the value of their properties despite the overall decline in sales prices.

Sales activity has seen a downturn, with the number of Homes Sold decreasing by 1.5% year-over-year to 18,642. Pending Sales have experienced a more significant drop of 10.5%, indicating a potential slowdown in future transactions. However, New Listings have increased by 3.5%, reaching 33,527, which may contribute to the growing inventory levels.

Inventory has risen by 9.6% to 102,791, and the Months of Supply have surged by 50% to 5.5 months. This increase in supply suggests a shift towards a more balanced market, providing buyers with more options and potentially easing the competitive pressures seen in previous years.

The Median Days on Market have increased by 11% to 72 days, reflecting a slower pace in the market. The average sale to list ratio remains unchanged at 96.9%, indicating that homes are generally selling close to their listed prices. However, the percentage of Homes Sold above list price has decreased by 1.4% to 10.6%, suggesting a reduction in bidding wars.

Price Drops have become more common, with a 5.3% increase year-over-year, affecting 31.6% of listings. This trend may indicate that sellers are adjusting their expectations in response to changing market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 1.6% to 19.1%, further highlighting the slower pace of transactions.

Overall, the Texas housing market in January 2025 reflects a period of adjustment, with sellers recalibrating their strategies in response to evolving buyer behavior and market dynamics. While some metrics suggest a cooling market, others indicate resilience and potential opportunities for both buyers and sellers.