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Austin Area Home Prices in 2025: Which Cities Are Rising and Falling?

Austin Area Home Prices in 2025: Which Cities Are Rising and Falling?

Published 02/27/2025 | Posted by Dan Price

Austin Area Home Prices in 2025: A Data-Driven Analysis of Market Trends

The Austin area housing market has experienced notable shifts in 2025, with some cities seeing home prices rise while others have faced declines. By analyzing both average and median price changes across the top 30 cities in the region, we can gain insight into how the market is evolving.

So far in 2025, only four cities in the Austin area have seen an increase in their average home prices compared to 2024. Lockhart has led the way with a 7.9% increase in average sold price, followed by Manor at 4.8%, Liberty Hill at 1.2%, and Smithville at 6.9%. However, the majority of cities in the region have experienced price declines. Cities such as Lakeway (-23.3%), Dale (-28.5%), and Manchaca (-17.1%) saw some of the steepest decreases in average home prices, signaling potential market corrections in these areas.


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The median home price trends tell a slightly different story. Eight cities have reported an increase in their median home prices in 2025, reflecting a more mixed picture of price movements. Driftwood has shown the most significant increase, with median prices rising by 13.9% compared to 2024. Smithville follows with a 7.0% increase, Marble Falls with 3.9%, and Cedar Park with 3.0%. On the other hand, cities such as Lakeway (-14.8%), Leander (-11.1%), and Burnet (-10.7%) have experienced notable declines in median home prices.

The fact that more cities saw an increase in median prices than in average prices suggests a potential shift in buyer demand toward more affordable homes. This trend could indicate that higher-end properties are seeing slower sales, while homes at lower price points remain competitive. In areas like Driftwood and Smithville, rising median prices could reflect strong demand for mid-range homes, while the overall declines in cities like Lakeway may point to adjustments in the luxury market.

Another important takeaway from this data is the overall downward trend in home prices across much of the Austin area. The average price decline across all cities analyzed stands at approximately -5.6%, while the median price decline is slightly lower at -3.5%. This trend suggests that while some cities are holding steady or even growing in price, the broader market is facing headwinds that have impacted home values in many areas.

Market shifts like these are important for buyers, sellers, and investors alike. For buyers, the softening prices in many areas may present new opportunities to purchase homes at more favorable price points. Sellers in cities where prices are rising may still benefit from strong demand, while those in areas with declining prices may need to adjust their pricing strategies to remain competitive.

As we move further into 2025, it will be crucial to monitor these trends to see whether the price declines continue or if the market begins to stabilize. By keeping a close eye on city-level data, market participants can make informed decisions based on the latest developments in the Austin area real estate market. 

FAQ Section:

1. What factors are influencing home price changes in the Austin area in 2025?

Several factors are impacting home prices in the Austin area this year, including interest rates, inventory levels, and local economic conditions. Cities experiencing price growth are likely seeing strong demand and limited supply, while areas with declining prices may have higher inventory or shifting buyer preferences.

2. Which Austin area cities have the highest home price appreciation in 2025?

Lockhart, Driftwood, and Smithville have experienced some of the highest home price increases in 2025. These cities saw median and average price growth, suggesting sustained demand for homes in these areas.

3. Should buyers wait to purchase a home in the Austin area, given the price declines?

Market conditions vary by location, but the overall downward trend in home prices may present a good opportunity for buyers. Those looking to purchase should monitor local market trends, interest rates, and inventory levels to determine the best time to buy.

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