Austin Housing Market Update: April 2025 Inventory Reaches 10-Year High

Austin Housing Market April 2025: Inventory Hits Highest Level in 10 Years : On April 11, 2025, the Austin-area housing market recorded a significant increase in supply, with the months of inventory rising to 5.57, the highest level for April in over ten years. This figure reflects the amount of time it would take to sell all active listings at the current pace of sales, assuming no new listings are added. The increase in inventory signals a shift in market dynamics, as buyers are presented with more options and sellers face growing competition.

Comparing this to recent years, the growth is notable. Just four years ago, in April 2021, the months of inventory was only 0.81. Since then, the market has steadily moved away from the record-low inventory levels brought on by pandemic-era demand and limited supply. The April 2025 figure represents a 17.1% increase from April 2024, when the months of inventory stood at 4.76. This also marks a 152.9% increase from April 2022, when inventory was 2.2 months.

The long-term historical perspective shows how rare this level of supply has been in the region. Between 2015 and 2019, April inventory ranged between 2.7 and 4.1 months, suggesting that the 2025 value is not only the highest in over a decade but well above the pre-pandemic norm. During the 2020 to 2022 boom, inventory dropped sharply—falling below 1.0 month in 2021. Since then, as buyer urgency cooled and more homes entered the market, inventory levels began returning to a more balanced state.

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This trend is supported by broader data from the residential inventory report. In April 2025, the number of active residential listings in the Austin-area MLS reached 15,234, up from 13,951 in April 2024, representing a 9.2% year-over-year increase. Meanwhile, the number of new listings surged by 17.7%, totaling 7,094 in April. Despite this growth in supply, buyer activity appears to be lagging. Pending sales decreased by 3.9% year-over-year, and total sales fell 4.2% compared to April 2024.

These patterns directly influence the months of inventory calculation, which depends on both supply (active listings) and demand (sales). The slower rate of pending and closed sales means more homes remain on the market longer, contributing to the elevated inventory levels. Additionally, the gap between active and pending listings grew to 10,452, up from 8,977 the previous year, showing further slack in buyer demand relative to supply.

The City of Austin reflects a similar trend, with 5.80 months of inventory in April 2025—a 14.5% increase from April 2024. This city-specific figure slightly exceeds the broader MLS figure, indicating that inventory is building even more quickly within Austin city limits.

From a market perspective, an inventory level of 5 to 6 months is traditionally viewed as balanced—not clearly favoring either buyers or sellers. However, given how far the Austin market had leaned in favor of sellers over the last several years, the current level of supply is a clear departure from previous conditions. With more homes available and fewer buyers submitting offers, sellers may need to adjust expectations on pricing, negotiations, and time on market.

In summary, April 2025 marks a pivotal point in the Austin housing cycle. The increase in months of inventory—from both a short-term and long-term perspective—suggests the market is entering a new phase, where supply is rising faster than demand. This trend will likely influence pricing behavior, marketing strategies, and transaction timelines throughout the remainder of the year.