Cedar Park Housing Market Update – May 2025 Sees Inventory Surge and Buyer Shift

Cedar Park Housing Market Sees Major Inventory Growth and Market Shift in May 2025

The Cedar Park housing market is experiencing a significant shift in 2025, with inventory rising rapidly and buyer activity showing signs of cooling. As of May 20, there are 268 active residential listings in Cedar Park. This marks a dramatic 108.8% increase in inventory since the start of the year and a 90.6% increase compared to May 2024. These figures reflect a strong surge in listing activity that has reshaped the balance between supply and demand in this suburban Austin community.

Cedar Park’s current Months of Inventory stands at 4.04. While this is still technically below the 5.0 threshold for a neutral market, the rapid growth from previous months indicates a market moving quickly toward equilibrium. In contrast to the inventory gains, buyer engagement is more restrained. The Activity Index is just 25.8%, meaning only about one in four listings is currently under contract. Homes are also spending more time on the market, with the average Days on Market at 47, up from earlier in the cycle. The slowdown in contract activity combined with increasing inventory levels suggests that sellers must now compete more aggressively for buyer attention.

Pricing data further highlights the ongoing transition. The average list price in Cedar Park is $624,927, and the median is $556,000. However, 51.9% of listings have experienced at least one price reduction, with an average drop of $46,057. Another 45.1% of listings have not changed price, while only 3% have increased. These figures signal widespread price sensitivity and a market where overpricing is unlikely to be successful.

Affordability is also becoming a critical issue for many potential buyers. A median-priced home of $556,000 would require a monthly payment of approximately $4,126 under current interest rates and tax estimates. To qualify under the standard 28% front-end debt-to-income ratio, a household would need to earn at least $176,825 per year. Even at the 25th percentile of home prices—$427,250—a buyer would still need an income of nearly $136,000. These affordability thresholds are limiting the pool of qualified buyers and reinforcing downward pressure on price expectations.

Recent sales data reflects this new environment. In the past 90 days, 199 homes have sold in Cedar Park. Of those, 58.3% sold below list price, 39.2% sold at list, and only 2.5% sold above asking. The median sold price for these homes is $510,000, and the average is $580,852. While these numbers represent a modest year-over-year gain from May 2024, they remain well below the 2022 market peak, confirming that the market is still in the midst of a multi-year correction.

Historically, Cedar Park has seen strong long-term growth, with an average annual appreciation rate of 5.46% since 2000. Yet recent trends show that the market is currently undergoing a period of normalization. Inventory is rising quickly, and many buyers are taking a more cautious approach. Sellers, in turn, are being forced to adjust expectations and pricing strategies. With affordability challenges and economic uncertainty in the background, the Cedar Park real estate market in May 2025 is clearly one of recalibration, where data and pricing precision matter more than ever.

FAQ: Cedar Park Real Estate Market – May 2025

What is the current state of the Cedar Park housing market?

As of May 2025, the Cedar Park housing market is transitioning toward a more balanced or even buyer-favored environment. Active inventory stands at 268 homes, which is up 108.8% year-to-date and 90.6% year-over-year. The Months of Inventory is 4.04, higher than it has been in recent years. Buyer activity is moderate, with a 25.8% Activity Index and longer average days on market. These conditions suggest reduced competition and more negotiating room for buyers.

How much have home prices changed in Cedar Park?

The average list price in Cedar Park is currently $624,927, while the median list price is $556,000. Compared to earlier peaks, prices have softened. The average sold price over the past 90 days is $580,852, and the median sold price is $510,000. This represents a 5% increase from May 2024 but remains below the high points of 2022. A significant number of listings—over half—have seen price drops, indicating downward pricing pressure.

What does a 4.04 Months of Inventory figure mean for buyers and sellers?

A Months of Inventory figure of 4.04 means that if no new homes were listed, it would take just over four months to sell all current listings at the current pace. While this is not yet a full buyer’s market, it represents a significant increase in available housing options and a shift away from the seller-dominated conditions of recent years. It implies that sellers will need to price competitively and that buyers have more room to negotiate.

Are homes in Cedar Park affordable in 2025?

Affordability is a growing concern. A median-priced home of $556,000 requires a household income of roughly $177,000 to qualify under the standard 28% debt-to-income rule, assuming a 20% down payment and current interest rates. Even homes in the 25th percentile require incomes above $135,000. These affordability barriers are limiting demand and contributing to increased time on market and price adjustments.

How has buyer behavior changed in Cedar Park?

Buyer behavior has shifted in response to rising inventory and affordability limits. Only 2.5% of homes sold above asking price in the past 90 days, while 58.3% sold below list. Buyers are taking longer to make decisions and are less likely to compete in bidding wars. With more options on the market and reduced urgency, many buyers are adopting a wait-and-see approach or negotiating more assertively when making offers.