Austin’s housing market holds steady but leans toward buyers as inventory remains elevated and sales pace lags historical norms.

Market Overview

The Austin real estate market on August 12, 2025, continues to reflect a supply-heavy environment, with 17,495 active residential listings—a 15.6% increase from the same time last year when active listings stood at 15,149. While the current inventory is down from the June 30 high of 18,146, it still represents a sizable selection for buyers. Notably, 59.0% of active listings have experienced at least one price reduction, underscoring the competitive pressures many sellers are facing. This is a clear indicator of softening demand and an environment that requires strategic pricing to attract offers.

Year-to-date cumulative new listings have reached 35,381, which is +0.1% year-over-year and +18.0% above the historical average. This consistent inflow of properties has kept buyers in the driver’s seat, despite seasonal slowdowns. Pending listings currently stand at 4,250, a modest 2.6% gain compared to last year’s 4,142. However, cumulative pending sales from January through August are -9.4% year-over-year, reflecting ongoing demand headwinds.

Housing Prices

The median sold price in Austin is now $452,807, marking a 17.67% decline from the May 2022 peak of $550,000—a difference of $97,193. Average sold prices are also down 7.07% from the $681,939 peak, sitting at $633,516. While these price declines have been significant over the past two years, recent stability suggests that prices may be finding a bottom.

Price trends are mixed across market segments. Homes in the top 25th percentile—often representing luxury or high-end properties—have seen a 4.00% year-over-year increase in median price, though their price per square foot has fallen by 3.02%. In contrast, the bottom 25th percentile—more entry-level inventory—has seen prices dip 0.61%, with a 3.83% decline in price per square foot. This split reflects stronger resilience in the higher end of the market compared to more affordable segments, which remain under greater price pressure.

Regional Trends

City-level data shows that 11 cities in the Austin area have recorded year-over-year median price increases, while 19 cities have seen declines. This uneven performance highlights the importance of hyperlocal analysis when pricing and marketing properties. Some suburban areas continue to see competitive conditions, particularly where new construction is more limited, while others with larger inventories are still working through price adjustments.

List-to-Sale Price Performance

The market’s sold-to-active ratio—a measure of how quickly inventory is being absorbed—is 16.05%, roughly half the historical average of 31.88%. This indicates that while homes are selling, the pace is much slower than in past years, giving buyers more negotiation leverage. The Activity Index, which compares pending listings to active listings, sits at 19.5%, down from 21.7% last year, further confirming the slower demand.

The Monthly New Listing to Pending Ratio is 0.63, meaning that for every 100 new listings, only about 63 are going under contract that month. The year-to-date ratio is slightly higher at 0.69, still well below the 25-year average of 0.82.

Peak Value Trends

Based on the 25-year compound appreciation rate of 5.007%, if August 2025 marks the bottom of this correction, the Austin market would take an estimated 50 months—until September 2029—to return to its May 2022 peak median price of $550,000. This projection assumes steady appreciation and no significant market disruptions.

Supply and Inventory Outlook

Months of inventory are currently at 6.25, a 17.1% increase from last year’s 5.34 months. This is firmly in buyer’s market territory, where supply exceeds demand. New construction accounts for 27.5% of the market, compared to 16.9% for resale properties. This imbalance suggests that builders remain aggressive in their offerings, potentially contributing to downward price pressure in some segments.

The Market Flow Score, a composite measure of supply-demand balance, is 4.25, well below the historical average of 6.60. This reinforces the message that while there is activity in the market, momentum remains slow.

Implications for Buyers, Sellers, and Agents

For buyers, this environment presents expanded choice, reduced competition, and better negotiating conditions—especially on homes that have been sitting on the market with price drops. For sellers, realistic pricing strategies and strong listing presentation are critical. Overpricing in this climate often leads to extended market time and eventual reductions.

Real estate agents should focus on market education, ensuring clients understand the importance of positioning their properties competitively from day one. For investors, the soft conditions and price declines—especially in the entry-level and mid-market segments—may create selective opportunities.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for August 12, 2025.​