Dallas-Fort Worth’s housing market appears to be slowing, according to the latest data from Dallas-based HomesUSA.com.
While new home sales in the metroplex were up 8% year-over-year in February, they slipped slightly from levels seen the month prior. Home prices, too, have softened in Dallas-Fort Worth since the start of 2025. Together, the metrics suggest the DFW market shows signs of a slowdown.
Pending home sales in North Texas remain essentially flat, while time on the market has increased markedly.
Last month, The Dallas Express reported that prospective buyers in the region saw an increase in available options, with houses sitting on the market for more than three months on average. For comparison, the average was closer to two to three weeks during the height of real estate activity coming out of the pandemic lockdowns. The latest data shows the average home spent 144.9 days on the market in February, up from 129.7 days in January.
HomesUSA.com said that elevated mortgage interest rates continue suppressing new home sale activity in all of Texas’s major markets.
“This is concerning because spring is the traditional start of the home sales season, but right now, the numbers are telling us to expect only a moderate bounce,” Ben Caballero, founder and CEO of HomesUSA.com, said in the report. “This is confirmed by the modest pending sales numbers that are forecasting weak sales the first half of 2025, but that could change if interest rates moderate.”
In February 2025, North Texas recorded 1,788 new home sales, down from 1,847 in January 2025 but up from 1,657 in February 2024. In terms of prices, the average in North Texas was $494,145 in February 2025, down from $496,498 the month before but up from $472,877 in February 2024.
Despite the recent price drop, North Texas still maintains the state’s most expensive new home market.