Georgetown, TX Housing Market Sees Inventory Surge and Price Corrections: June 2025 Analysis
The Georgetown real estate market has experienced a significant shift during the first half of 2025, with data pointing to rising inventory, widespread price reductions, and softening market conditions. At the start of the year, there were 827 active residential listings in Georgetown. Today, that number has climbed to 1,364, marking a 64.9% increase in available homes. This rapid rise in inventory reflects broader market trends across the Austin area, where elevated mortgage rates and subdued demand have contributed to expanded choices for buyers.
One of the clearest signs of the market correction is the percentage of active listings with price reductions. At the beginning of 2025, 56.1% of listings had dropped their asking prices. As of June 26, that figure has risen to 61.6%. This increase indicates that sellers are adjusting to market realities, as elevated inventory levels and cautious buyer activity have made competitive pricing more important than ever.
The median list price for homes currently on the market in Georgetown stands at $500,000, with an average list price of $587,029. However, sellers are offering significant discounts to attract buyers. The average price drop is $36,268, while the median price reduction is $25,000. These figures reflect a market where buyers have growing negotiating power, and sellers are under pressure to align with buyer expectations.
The rise in inventory has also impacted how long homes stay on the market. The average Days on Market for active listings is now 79 days, with a median of 63 days. This is a notable increase from recent years, when homes sold much faster due to limited inventory and heightened demand.
Recent sales activity confirms the cooling trend. From March 27 to June 26, 2025, a total of 817 residential properties sold in Georgetown. The median sold price during this period was $471,000, with an average sold price of $528,183. Compared to the previous year, the median sold price is down by 3.1%, and the average sold price has decreased by 3.9%. These price adjustments illustrate how sellers are responding to market conditions, particularly as competition among listings increases.
The majority of homes sold in Georgetown during this period closed below the original list price. Data shows that 65.7% of homes sold for less than asking, while 24.4% sold at list price, and just 9.9% managed to sell above list price. This further reflects a shift toward a more buyer-friendly market, with fewer bidding wars and increased price flexibility.
Housing affordability remains a key concern for many buyers. According to current estimates, purchasing a median-priced home in Georgetown, priced at $500,000, requires an estimated monthly payment of $3,811, based on a 20% down payment, a property tax rate of 2.22%, and insurance at 0.68%. Using the standard affordability guideline that suggests housing costs should not exceed 28% of gross monthly income, a household would need to earn approximately $163,316 annually to comfortably afford a median-priced home. For buyers looking at homes priced within the lower percentiles, affordability improves slightly. For example, homes priced at or below the 25th percentile of $399,999 require an estimated annual income of around $130,652 to remain within affordability guidelines.
The current mix of inventory shows that 35.7% of active listings are new construction, while resale homes make up 64.3% of the market. Notably, 62.2% of listings are vacant, which is often an indicator of increased seller motivation and potential for further price reductions.
In terms of long-term market trends, Georgetown has seen steady appreciation over the years. From 2000 to 2025, the city recorded an annual compound growth rate of 4.57% in median home prices. However, recent figures illustrate a market correction rather than continued growth. Median sold prices peaked at $487,900 in 2022 but declined to $450,000 in 2023. While 2024 showed a modest rebound to $460,610, the current median sold price of $455,000 for 2025 suggests that pricing remains under pressure.
With Months of Inventory currently at 5.0, Georgetown sits on the edge of a neutral market. However, given the rapid increase in available listings and the high percentage of price drops, market dynamics are leaning toward buyer advantage. If inventory continues to rise and demand remains muted, further price adjustments and increased days on market are likely.
The combination of increased inventory, widespread price reductions, and slowing sales activity signals a key moment in Georgetown's housing market. Buyers now have more options and negotiating power, while sellers face growing competition and must price strategically to attract offers.
FAQ: Georgetown, TX Real Estate Market – June 2025
Is the Georgetown, TX housing market a buyer's market in 2025?
The Georgetown housing market is transitioning toward buyer-friendly conditions. With active inventory rising nearly 65% since January and over 61% of listings experiencing price reductions, buyers have more negotiating power and a wider range of options than in recent years. Months of Inventory currently stands at 5.0, which technically reflects a neutral market, but the trajectory points toward a buyer's market if inventory continues to grow.
How much have home prices dropped in Georgetown, TX?
Median sold prices in Georgetown have declined by 3.1% compared to the previous year, with the current median sold price at $471,000. The average sold price is down 3.9%, now at $528,183. Many active listings have seen additional price reductions, with the average price drop totaling $36,268 and the median price drop at $25,000.
How long does it take to sell a home in Georgetown, TX?
On average, homes in Georgetown are taking 79 days to sell, with a median of 63 days on market. This is a significant increase compared to the peak of the market in 2021 and 2022, when homes often sold in less than 30 days due to intense buyer competition and limited supply.
What income is needed to buy a home in Georgetown, TX?
To purchase a median-priced home in Georgetown, which is currently $500,000, a household would need an annual income of approximately $163,316 to stay within standard affordability guidelines. This calculation is based on a 20% down payment, a property tax rate of 2.22%, homeowners insurance at 0.68%, and a mortgage rate of 6.78%, ensuring monthly housing costs do not exceed 28% of gross income.
Are price reductions common in Georgetown right now?
Yes, price reductions are widespread in the Georgetown housing market. As of June 26, 2025, 61.6% of active listings have seen price drops. This is up from 56.1% at the beginning of the year, reflecting the increased competition among sellers and the need to adjust pricing to meet buyer expectations.
