Understanding Austin's Property Value Drops: 2025 Data Analysis : The Austin real estate market has seen some significant shifts since its peak values, and understanding these changes can help both buyers and sellers navigate the current landscape. According to recent data from Team Price Real Estate, a brokerage in the Austin area, the Austin-Area Multiple Listing Service (MLS) and the City of Austin have both experienced notable declines in property values from their highest points.

Starting with the Austin-Area MLS, the average list price reached its peak in March 2023 at $708,929 but has now settled to $677,781, marking a drop of $31,148, or a decrease of 4.4%. The median list price, which often gives a clearer picture of the middle market, peaked in May 2022 at $539,900. It has since fallen to $473,735, a significant decrease of $66,165, or 12.3%. For those looking at sold properties, the average sold price in the Austin-Area MLS was at its highest in May 2022 at $664,515, dropping to $527,131 currently, showing a decrease of 20.7%. Similarly, the median sold price, which was $538,000 at its peak, has now decreased by 25.7% to $400,000.

When we look at the price per square foot, another crucial metric for understanding value, the average sold price per square foot in the Austin-Area MLS peaked in April 2022 at $324, now standing at $244, a 24.7% decrease. The median price per square foot followed a similar trend, dropping from $280 to $210, which equates to a 25% reduction from its peak.

In the City of Austin specifically, the trends are somewhat different. The average list price reached its peak slightly later, in April 2024, at $945,176, and has since decreased to $924,232, a smaller drop of 2.2%. The median list price in the city, peaking in May 2022 at $658,589, has now reduced to $624,387, a 5.2% decline. The average sold price for homes in Austin was $847,583 at its peak in May 2022, now at $747,023, showing an 11.9% drop. The median sold price dropped from $680,000 to $560,000, which is a 17.6% decrease.

The price per square foot in the City of Austin also shows a significant adjustment. The average sold price per square foot went from $442 in May 2022 to $344, a decrease of 22.2%. The median price per square foot experienced a larger decline, dropping from $393 to $210, a substantial 27% decrease.

These figures from Team Price Real Estate's latest report on February 3, 2025, offer a snapshot of how the real estate market in Austin has evolved, providing vital insights for anyone involved in buying or selling property in the Austin-Area.