Is Austin a Buyer's or Seller's Market? A Hyperlocal Analysis

The Austin real estate market is often viewed through a broad lens, but the truth lies in the details. While the city of Austin overall is in a seller's market with 4.67 months of inventory, this number only tells part of the story. Real estate is hyperlocal, meaning conditions can vary dramatically from one neighborhood or zip code to another. Analyzing specific areas within Austin reveals the nuances that the citywide average can’t capture.

For instance, Downtown Austin, represented by zip code 78701, tells a very different story compared to suburban areas like Shady Hollow in zip code 78739. Downtown Austin is deep in a buyer's market, with 11 months of inventory available. This surplus is largely due to the high number of condos on the market, which creates ample opportunities for buyers to negotiate favorable deals. The average list price in this area is $1,302,688, with a median price of $777,000. Properties in this zip code spend a median of 69 days on the market, reflecting the slower pace typical of a buyer’s market.

​Contrast this with 78739, home to neighborhoods like Shady Hollow, which is experiencing a hot seller's market. Here, the months of inventory are incredibly low at just 0.65 months, indicating a scarcity of available homes. The average list price in 78739 is $1,005,809, with a median price of $784,900. Homes are moving quickly, with a median of just 39 days on the market. The Activity Index in this area is robust, reflecting strong buyer demand and limited supply, which puts sellers firmly in the driver's seat.

Looking beyond these two examples, a detailed breakdown of Austin’s zip codes shows a mix of market conditions across the city. Out of the various zip codes analyzed: 

23 are currently in a seller's market

7 fall into a neutral market

13 are in a buyer's market

For example, zip codes like 78717 and 78727 are strong seller markets with 2.43 and 1.89 months of inventory, respectively. On the other hand, zip codes such as 78702 and 78704 are firmly in buyer territory, with 9.08 and 7.09 months of inventory.

The broader city statistics also shed light on these dynamics. As of February 11, 2025, there were 3,107 active residential listings in Austin. The average list price across the city was $1,017,320, with a median price of $600,000. The average days on market for these properties was 94, with a median of 65 days. Vacant properties made up 64.44% of the listings, while owner-occupied homes accounted for 27.49%, and tenant-occupied properties comprised 8.08%.

In summary, while the overall city of Austin is technically in a seller's market, the conditions vary greatly depending on the specific area. Neighborhoods like Shady Hollow in 78739 are experiencing fierce competition among buyers, whereas Downtown Austin in 78701 offers more options and negotiating power for those looking to purchase. This highlights the importance of understanding the local dynamics of the real estate market, as the citywide average is merely an aggregation of many diverse submarkets.

FAQ

1. Is Austin currently a buyer's or seller's market? Austin, overall, is in a seller's market with 4.67 months of inventory. However, market conditions vary by neighborhood and zip code. Some areas like Downtown Austin (78701) are in a buyer's market, while neighborhoods like Shady Hollow (78739) are hot seller's markets.

2. What does months of inventory mean in real estate? Months of inventory refers to the number of months it would take to sell all the current homes on the market at the current sales pace. Less than 4.9 months indicates a seller's market, 5 to 6.9 months suggests a neutral market, and more than 7 months signifies a buyer's market.

3. Why is real estate considered hyperlocal in Austin? Real estate is hyperlocal because market conditions can vary significantly within the same city. Factors such as neighborhood amenities, school districts, and housing types influence supply and demand, leading to different market dynamics even within the same city like Austin.