Austin Housing Inventory Hits New Record in May 2025

Austin Housing Market Hits Record High Inventory, Up 20% from 2024

As of May 26, 2025, the Austin-area housing market has reached a new milestone, with active residential listings climbing to 17,337. This figure marks the highest ever recorded in the region’s MLS and represents a 20.0% year-over-year increase compared to 14,453 active listings in May 2024. The surge in available inventory reflects a widening gap between supply and demand that has intensified throughout 2025. Year-to-date, 23,977 homes have been listed—30.4% above the long-term average—while only 18,062 have gone under contract, producing a 5,915-unit deficit, the largest five-month absorption gap since 2004.

This imbalance is reshaping the market. The New Listing to Pending Ratio sits at 0.54 for May and 0.66 year to date, both substantially below the 25-year historical average of 0.81. This ratio signals a slowing rate of absorption, where buyer demand is failing to keep up with new inventory entering the market. The Activity Index, a metric tracking the percentage of active listings under contract, has dropped from 25.9% in May 2024 to just 22.2% this year, reinforcing the shift to a slower-moving, buyer-driven environment.

Months of Inventory (MOI) has also risen sharply to 6.21, up from 5.09 one year ago—an increase of 22.0%. This MOI level solidifies the market’s current status as favoring buyers, with many properties spending longer on the market and facing more aggressive pricing competition. In fact, 51.4% of all active listings have undergone at least one price reduction.

Price trends continue to reflect this cooling demand. The median sold price for May 2025 is $455,000, representing a 17.3% decline from the May 2022 peak of $550,000. The average sold price has also dropped to $594,340, a 12.85% decrease from the peak of $681,939. Even if the market has bottomed, projections based on a 5.027% annual appreciation rate suggest it could take until May 2029 to return to peak pricing levels.

The broad-based increase in inventory, from central Austin to suburban areas, is putting further pressure on sellers. Submarkets like Marble Falls and Jarrell have seen their Months of Inventory more than double since January. Meanwhile, sales volume has dropped 8.9% year over year, and the number of homes sold per 1,000 REALTORS® is 23.4% below average, indicating reduced buyer participation and heightened competition among agents.

Altogether, the sharp increase in active listings, combined with softened demand and falling prices, paints a clear picture of a real estate market deep in correction. Buyers now hold more negotiating power, while sellers are being forced to adjust expectations in response to rising inventory and slower absorption.

Frequently Asked Questions – Austin Housing Market (May 2025)

1. Why are active listings in Austin hitting record highs in 2025?

Active listings reached 17,337 as of May 26, 2025, due to a sharp rise in new inventory and slowing buyer activity. Year-to-date, new listings are up 30.4% above the historical average, while pending sales have not kept pace. This growing supply without matching demand has pushed active inventory to its highest level on record.

2. How does the current inventory compare to last year?

In May 2024, there were 14,453 active residential listings. The current figure of 17,337 represents a 20.0% year-over-year increase. This jump highlights a significant shift in market dynamics, with more homes available and buyers taking longer to act.

3. What does the New Listing to Pending Ratio mean for sellers and buyers?

The New Listing to Pending Ratio in May 2025 is 0.54. This means for every 100 new listings, only 54 are going under contract. With the long-term average at 0.81, this low ratio shows sellers are seeing slower activity and must price competitively. For buyers, it indicates more options, less competition, and greater negotiation power.

4. Are home prices still falling in the Austin area?

Yes. The median sold price in May 2025 is $455,000—down 17.3% from its peak in May 2022. The average sold price is $594,340, also significantly lower than the previous high. This ongoing price adjustment reflects a market correcting from the rapid appreciation seen during the pandemic years.

5. How long will it take for Austin home prices to recover?

Assuming the market has reached its bottom, a 5.027% annual compound appreciation rate would bring median prices back to their 2022 peak of $552,198 by May 2029. This estimate assumes steady growth and no additional market shocks over the next four years.​