The Texas housing market in February 2025 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes in Texas stands at $339,300, reflecting a modest year-over-year increase of 1.3%. This indicates a slight upward pressure on home prices, albeit at a slower pace compared to previous years.

In contrast, the Median List Price has risen by 3.4% year-over-year, reaching $374,800. This suggests that sellers are optimistic about the market, potentially anticipating higher returns. However, the median Price Per Square Foot has decreased by 0.9% to $176, indicating a slight decline in the value buyers are willing to pay per square foot.

Sales activity has experienced a downturn, with the number of Homes Sold decreasing by 7.8% year-over-year to 21,550. Pending Sales have also dropped by 9.7%, totaling 28,938. This decline in sales activity could be attributed to various factors, including economic conditions or buyer hesitation.

New Listings have decreased by 3.9% year-over-year, with 36,159 homes entering the market. Despite this decline, inventory levels have increased significantly by 11.7%, reaching 109,296 homes. This rise in inventory, coupled with a 90% increase in Months of Supply to 5.10, suggests a shift towards a more balanced market, potentially favoring buyers.

The Median Days on Market have increased by 12% to 75 days, indicating that homes are taking longer to sell. This could be a result of the increased inventory and slower sales activity. The average sale to list ratio has slightly decreased by 0.3% to 96.8%, suggesting that homes are selling closer to their list prices, but with less competition driving prices above asking.

The percentage of Homes Sold above list price has decreased by 1.1% to 11.6%, further indicating a cooling in competitive bidding. Price Drops have increased by 3.8% to 29.8%, reflecting sellers' adjustments to align with market conditions. Additionally, the percentage of homes going off-market in two weeks has decreased by 4.1% to 23.1%, suggesting a slower pace in buyer decision-making.

Overall, the Texas housing market in February 2025 exhibits a mix of rising prices and declining sales activity, with increased inventory and longer market times. These trends suggest a market in transition, potentially moving towards more favorable conditions for buyers.