Guy calls me beautiful but then tells me he doesn't like me. Please help very confusing?!?!?

My friend and her brother recently moved to my town. He is one year younger than me and was starting to go to my school so I decided to show him around. As I got to know him I found that he was really smart, funny, as well as cute. We started texting everyday and pretty soon were hanging a lot. I introduced him to all of my friends and we would all hang having a good time. A couple of days after school started he said that I was really beautiful and would flirt with me. I honestly thought that he really liked me. Now two weeks into school he hardly ever texts me or wants to hang out. When we did he didn't really pay attention or acknowledge me like he use to. It was kind of ackward. I was talking with my friend yesterday and apparently he likes someone else in his homeroom who doesn't even like him that way back. She just wants to be friends. So now I'm just left in the lurch with my heart feeling frustrated. I was really starting to like him but the candle was blown out before the flame could grow. What do I do now? Wait until his heart is broken by the girl who doesn't even like him that way and try to catch his interest after that? Or will there ever even be that connection again? Thankyou for any insight you can give, i'm feeling really confused right now.