Austin Housing Market Cools: Inventory & Prices Shift in 2025

Buyer’s Market Grows in Austin: 2025 Real Estate Data Revealed : The Austin real estate market has undergone a significant transformation between February 2024 and February 2025. With shifting inventory levels and evolving market conditions, buyers and sellers are navigating a landscape that looks markedly different from a year ago. A detailed analysis of the data reveals a notable cooling trend, with fewer seller’s market zip codes and an increase in neutral and buyer’s markets, suggesting a shift toward more balanced conditions.

​In February 2024, the market was heavily tilted in favor of sellers, with 45 zip codes categorized as seller’s markets, meaning they had less than 4.9 months of inventory. Neutral markets, which have 5 to 6.9 months of inventory, accounted for 12 zip codes, while 18 zip codes were considered buyer’s markets, with over 7 months of inventory. A year later, in February 2025, the number of seller’s markets dropped to 34 zip codes, while neutral markets expanded to 18 zip codes, and buyer’s markets grew to 23 zip codes. This redistribution highlights the rising availability of homes and a cooling demand.

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The shift is further underscored by changes in inventory levels. The median months of inventory increased from 4.32 in February 2024 to 5.27 in February 2025, while the average months of inventory rose from 5.14 to 5.85. These numbers indicate that homes are staying on the market longer, giving buyers more negotiating power and making it less favorable for sellers compared to the previous year.

The impact of this transition is evident in home prices across various zip codes. In Downtown Austin (78701), the median home price fell from $850,000 to $765,000, a 10% decrease. Similarly, East Austin’s 78702 zip code saw a sharper decline of 18%, with the median price dropping from $849,945 to $699,992. South Austin (78704) also experienced a decrease, with median prices shifting from $985,000 to $930,000. While some luxury markets, such as West Austin’s 78703, maintained relative stability with only a 2.5% decrease, the broader trend suggests a slowdown in price growth across most areas.

Days on Market (DoM) also provide insight into the market’s cooling. In Austin’s core neighborhoods, such as 78701, 78702, and 78703, the median DoM in February 2024 ranged from 56 to 86 days. By February 2025, that range tightened to 45 to 53 days, indicating that despite the overall slowdown, well-priced properties in central locations are still moving. However, suburban markets tell a different story. Areas like Pflugerville (78660), Cedar Park (78613), and Leander (78641) saw DoM increases, with homes taking longer to sell compared to the previous year.

Among all zip codes, some experienced the most significant surges in inventory. The largest increase in active homes for sale occurred in Smithville (78957), where inventory rose by 85%, followed by Georgetown (78626) with a 78% increase. Southwest Austin’s 78749 saw a 72% jump, while 78724 in East Austin experienced a 62% rise. Meanwhile, Hutto’s 78634 inventory climbed 62% as well. These increases, coupled with significant growth in months of inventory, further emphasize the cooling market conditions. Notably, Hutto’s months of inventory rose by 175%, while Georgetown (78626) saw an increase of 156%.

The increase in available homes and inventory duration is reshaping market dynamics. In 2024, multiple-offer scenarios and seller-driven negotiations were common, but the current data suggests buyers now have more leverage. Sellers need to be more competitive with pricing and offer incentives to attract buyers. While some neighborhoods are holding steady, many are adjusting to these changing conditions, making it crucial for buyers and sellers to stay informed about evolving trends in the Austin real estate market.​