Austin Real Estate Market: A Detailed Analysis of Active Listings : As of January 15, 2025, the Austin real estate market is exhibiting significant shifts in active residential listings, reflecting both seasonal trends and broader market dynamics. Currently, there are 11,120 active residential listings across the Austin area, marking a 12.7% increase from the previous year. Despite this annual growth, the market has seen a substantial decline from the peak of 15,503 active listings recorded in mid-July 2024, representing a 28% drop in available inventory.

Month-over-month, active listings have decreased by 7.99%, signaling a contraction in housing supply as the market adjusts post-peak season. This decline is further emphasized by the daily and weekly reductions in listings throughout December 2024 and January 2025. Notably, the largest daily drop occurred on January 1, 2025, with a reduction of 479 listings.

The Months of Inventory (MOI) currently stands at 3.88, up from 3.45 a year ago, reflecting a 12.4% increase. This suggests a slight shift towards a more balanced market, yet it still leans towards a seller's market. The Activity Index, a critical measure of market demand, is at 23.2%, down from 26.2% in the previous year, indicating a modest decline in buyer engagement.

Breaking down the property conditions, resale homes dominate the market with 6,433 listings, accounting for 57.9% of the active inventory. New construction homes make up 20.2% with 2,246 listings, while properties under construction contribute 12.7% with 1,407 listings. Notably, updated or remodeled homes represent 5.5% of the market, showcasing a significant demand for move-in-ready properties.

Price adjustments have been evident across all property types. Resale homes have seen an average price drop of 6.8%, with an average list price of $730,327. New construction properties have experienced a 7.2% price reduction, bringing their average price to $693,237. Homes under construction have an average list price of $550,852, reflecting a 6.5% decline. These adjustments highlight sellers' responses to market pressures and the need to stay competitive.

Geographically, Austin leads with 2,864 active listings, followed by Georgetown with 894 listings and Round Rock with 417 listings. The distribution of active listings varies significantly by city, with areas like Jarrell experiencing a notable 16.1% activity index, suggesting heightened market movement in smaller, emerging markets.

Foreclosure and distressed properties constitute a small portion of the market. Real Estate Owned (REO) properties account for 0.95% of active listings, while short sales and pre-foreclosure homes make up 0.33% and 0.11%, respectively. This low percentage indicates a relatively stable market without significant distress-driven sales.

Vacancy rates also provide insight into market conditions. Of all active listings, 65.8% are vacant, 30.1% are owner-occupied, and 4.1% are tenant-occupied. Cities like Kyle and Jarrell have higher vacancy rates at 80.4% and 76.8%, respectively, reflecting potential opportunities for buyers seeking immediate occupancy.

The median days on the market for active listings is currently 83 days. Approximately 32.9% of homes have been listed for 50 days or fewer, while 42.4% have been on the market for over 100 days. This distribution indicates a mix of quick sales and longer-standing inventory, offering diverse options for buyers.

Overall, the Austin housing market in early 2025 presents a dynamic environment with increasing inventory levels, moderated buyer activity, and strategic price adjustments. These trends create opportunities for both buyers and sellers to engage in a market that is gradually moving towards equilibrium.