Austin Real Estate Market Update – May 15, 2025

Inventory Reaches New Record as Buyer Activity Slows

Austin’s housing market update for May 15, 2025, reflects a decisive shift toward supply-driven conditions. The MLS now reports 16,687 active residential listings, marking the highest inventory level ever recorded and underscoring the persistent strength in listing activity. Within Austin city limits, active listings have reached 5,281, up sharply from a year ago. This surge is part of a broader trend: year-to-date new listings are 20.1% above the historical average, pointing to a sustained influx of homes onto the market.

In contrast, demand continues to lag. Pending sales have slipped to 5,008, a 1.6% year-over-year decline, while the New Listing to Pending Ratio remains at 0.50, meaning that only one out of every two new listings is converting into a contract. The Activity Index, a leading measure of buyer engagement, has fallen to 23.1%, down from 27.1% a year ago. Pending volume is also 6.6% below seasonal norms, reinforcing a market dynamic where inventory is accumulating faster than contracts are being written.

This imbalance is reflected in the growing gap between supply and absorption. Months of Inventory (MOI) has climbed to 5.94, up from 4.77 in May 2024—an increase of 24.7%. In the City of Austin, MOI has jumped to 6.06, placing most neighborhoods in either a neutral or soft buyer’s market. Surrounding areas such as Marble Falls, Dale, and Spicewood now report MOI levels of 11.00, highlighting acute demand softness in several submarkets.

Home prices continue to show signs of longer-term correction. The median sold price for May 2025 is $475,000, down $75,000 or 13.6% from $550,000 in May 2022. The average sold price is now $623,046, a decline of $58,893 or 8.6% from its May 2022 peak of $681,939. These reductions suggest broad-based price softening across most segments, driven by affordability constraints, rising inventory, and prolonged decision cycles among buyers.

While some well-positioned properties continue to sell quickly and command strong pricing, the broader market is characterized by increased time on market, price reductions, and more selective buyer behavior. Sales per capita remain well below trend, and the current environment favors buyers who have both the patience and negotiating leverage to wait for value.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 15, 2025

Embedded PDF: Austin Daily Real Estate Briefing for May 15, 2025 — includes updated statistics on inventory, pricing, buyer demand, and market trends across the Austin area.

Austin Real Estate Market – Frequently Asked Questions

What is the current state of the Austin housing market in May 2025?

As of May 15, 2025, the Austin housing market is defined by record-high inventory levels and continued weakness in buyer demand. There are now 16,687 active residential listings across the MLS, the highest ever recorded in the region. Meanwhile, pending contracts total just 5,008, reflecting a 1.6% year-over-year decline in buyer activity. The New Listing to Pending Ratio remains at 0.50, meaning that for every two homes listed, only one is going under contract. The Activity Index, which tracks buyer engagement relative to overall inventory, has dropped to 23.1%, down from 27.1% in May 2024. These metrics point to a market where sellers face increasing competition and longer days on market, while buyers are proceeding cautiously and with more leverage.

How much housing inventory is available in the City of Austin right now?

The City of Austin currently has 5,281 active listings, marking a significant expansion in available inventory compared to one year ago. The Months of Inventory (MOI) for Austin has reached 6.06, up from 4.36 in May 2024, representing a 39.0% year-over-year increase. This shift places the city firmly in neutral-to-buyer market territory. In more suburban and rural areas, conditions are even more skewed toward buyers. For example, Marble Falls, Dale, and Spicewood each report 11.00 months of inventory, highlighting stark supply-demand imbalances in those locations.

What does a New Listing to Pending Ratio of 0.50 mean for buyers and sellers?

A New Listing to Pending Ratio of 0.50 indicates that only half of newly listed homes are going under contract, which points to a market where supply is significantly outpacing demand. For sellers, this means more competition, extended market times, and a higher likelihood of needing to reduce the list price to attract offers. It also underscores the importance of strategic pricing and presentation. For buyers, this environment presents a clear advantage—more choices, stronger negotiation power, and less pressure to rush into a decision. The 0.50 ratio is also historically low for the month of May and signals broader market softening.

Is buyer activity increasing or decreasing in the Austin real estate market?

Buyer activity is decreasing. The Activity Index—which measures the percentage of total listings under contract—has declined to 23.1%, down from 27.1% one year ago. That represents a 14.8% drop in buyer engagement year-over-year. Additionally, pending contracts are 6.6% below the historical average for this time of year. This trend reflects buyer hesitancy fueled by affordability concerns, rising inventory, and perhaps expectations of further price softening. The result is slower market velocity, longer selling timelines, and growing leverage for buyers in many submarkets.

How are Austin home prices trending in May 2025?

Home prices in Austin continue to correct from their peak levels. The median sold price in May 2025 is $475,000, which is down $75,000 or 13.6% from the May 2022 median of $550,000. The average sold price has dropped to $623,046, a decline of $58,893 or 8.6% from the May 2022 average of $681,939. This downward trend is the result of increasing supply and tempered demand, though not all segments are equally affected. Well-located, competitively priced homes still attract buyers quickly, but the broader market shows clear signs of price fatigue and correction. The correction is most evident when evaluating three-year trends, which illustrate that while some year-over-year comparisons may appear flat, the overall trajectory remains downward.

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