New-home sales fell in Texas as interest rates sidelined buyers in February, according to the Texas New Home Sales Report from HomesUSA.

Across Texas’ four largest cities, new-home sales increased year over year, but decreased month over month.

In Dallas-Fort Worth, there were 1,788 new-home sales in February, up from 1,657 a year prior. There were also 1,847 sales in January — slightly higher than last month.

Prices increased annually: The Metroplex’s average new-home price rose to $494,145, up from $472,877 in February 2024. Month over month, however, the average new-home price decreased by about $2,000.

“Texas new-home sales softened last month largely due to high mortgage rates and economic uncertainty,” Ben Caballero, CEO of HomesUSA, said in a press release. “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. This is confirmed by modest pending sales numbers that are forecasting weak sales the first half of 2025.”

Caballero added, “that could change if interest rates moderate.”