Hi Chelsey,
He most likely started talking to this other woman because you had been pulling back a lot and maintaining some distance from him despite his efforts to take you out on dates, spend a lot of time with you and talk to you all day, everyday.
He may have felt that his interaction with you wasn’t really going anywhere and believed that his efforts would be better served in talking to another woman who is more receptive to him.
He was honest with you about this other woman which does show that he respects you.
Being that he still wants to continue engaging with you, the door hasn’t been closed to the possibility of romance between the both of you.
If you feel that you are ready for the both of you to take the next step, you need to let him know how you feel right now.
If you wait this out and decide to tell him later, it may be too late.
By that point, he may have developed stronger feelings for this other woman.