Austin Real Estate Market Update – May 19, 2025

Inventory Surges to New High as Market Heads Toward Buyer Conditions

Austin’s housing market update for May 19, 2025, highlights a significant tipping point. Active residential listings across the MLS have reached a record-breaking 17,077, surpassing all historical highs and confirming an aggressive and persistent rise in inventory. Within Austin city limits, active listings now total 5,423—part of a broader regional trend where year-to-date new listings are up 24.3% compared to the historical average. The pace of new inventory continues to outstrip buyer demand, reshaping the balance of power in the market.

Buyer activity, by contrast, remains subdued. Pending listings currently stand at 4,968, reflecting a 2.4% year-over-year decline. The New Listing to Pending Ratio remains at 0.50, meaning for every home going under contract, two new listings are entering the market. This metric continues to diverge from the long-term average of 0.81, confirming that listing volume is overwhelming contract activity. The Activity Index, which tracks the share of active listings under contract, has fallen to 22.5%, down from 26.5% this time last year and well below pre-pandemic norms.

This ongoing supply-demand imbalance is fueling a rise in Months of Inventory (MOI), now sitting at 6.10—up from 4.95 in May 2024. While 7.0 MOI typically marks the threshold for a full buyer’s market, most areas, including the City of Austin at 6.10 months, are rapidly approaching that line. Outlying areas such as Marble Falls, Dale, and Spicewood have already reached 11.00 months of inventory, indicating severely oversupplied conditions in select submarkets.

Despite softening demand, median and average prices are still posting modest year-over-year gains. The median sold price for May 2025 is $466,175, a 2.5% increase from May 2024 but still down $58,825 or 11.2% from the peak of $525,000 in May 2022. The average sold price is $609,854, up 2.7% from last year, though down 10.6% from the May 2022 peak of $681,939. However, price strength is uneven. Both the bottom and top 25th percentile segments of the market are now declining year-over-year. The lower quartile median fell 3.5% to $332,990, and the upper quartile dropped 2.3% to $635,000. Price per square foot declined in both segments as well, confirming that softness is now market-wide—not just concentrated in any one price range.

City-specific data reflects this broad correction. In Round Rock, Leander, and Liberty Hill, both entry-level and luxury price points are trending down. Round Rock’s top 25th percentile is down 12.3%, Leander’s is down 12.0%, and Liberty Hill’s high-end pricing is down 18.1%. These figures highlight a growing challenge for sellers at all price levels.

While some competitively priced properties still receive strong interest, the overall market is becoming more selective. Homes are taking longer to sell, price reductions are more common, and many buyers are choosing to wait, sensing more favorable terms ahead. Sales per capita remain below historical norms, and the leverage is shifting steadily toward buyers who are prepared and patient.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 19, 2025.

Embedded PDF: Austin Daily Real Estate Briefing for May 19, 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 19, 2025, the Austin housing market is marked by record-breaking inventory levels and a continued slowdown in buyer activity. There are now 17,077 active residential listings across the MLS—the highest total ever recorded—underscoring a significant surge in new listings and a growing supply imbalance. Pending contracts currently total 4,968, reflecting a 2.4% year-over-year decline. 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 measures the share of active listings under contract, has dropped to 22.5%, down from 26.5% a year earlier. This combination of rising supply and softening demand is producing longer days on market, more price reductions, and a shift in leverage toward buyers across most price segments.

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

The City of Austin currently has 5,423 active listings, reflecting a significant increase from the same period last year. The Months of Inventory (MOI) in the city is now 6.10, up from 4.36 in May 2024—a 40.0% year-over-year increase. Although the 7-month threshold defines a full buyer’s market, Austin is clearly heading in that direction, with most neighborhoods already operating under neutral or soft buyer conditions. In surrounding markets, inventory surpluses are even more severe. For example, Marble Falls, Dale, and Spicewood each report an MOI of 11.00, confirming that demand in those areas is not keeping pace with supply and that buyers have a dominant position.

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 a pronounced supply-demand imbalance, where only half of the newly listed homes are going under contract. For sellers, this means more competition, longer listing timelines, and increasing pressure to reduce prices or offer incentives to attract buyers. Strategic pricing and staging are more critical than ever to stand out in a crowded market. For buyers, this ratio presents a clear advantage—there is more selection, less urgency, and greater negotiating power. Historically, a ratio of 0.81 has been the long-term average, so the current figure suggests sustained softening and continued opportunity for well-prepared buyers.

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

Buyer activity is decreasing. The Activity Index, which reflects the percentage of active listings under contract, has fallen to 22.5%, down from 26.5% in May 2024—a 15.0% year-over-year decline. Pending contracts are also running 4.1% below the historical average for this time of year. These metrics confirm that buyers are proceeding with caution, influenced by affordability concerns, economic uncertainty, and rising inventory levels. With more homes available and fewer under contract, the pace of the market has slowed, favoring buyers with the time and flexibility to wait for favorable terms.

How are Austin home prices trending in May 2025?

Austin home prices are showing early signs of broad-based softening despite modest year-over-year gains. The median sold price for May 2025 is $466,175, a 2.5% increase from May 2024, but still down $58,825—or 11.2%—from the May 2022 peak of $525,000. The average sold price is $609,854, up 2.7% from last year but down 10.6% from the peak of $681,939. More tellingly, both the bottom 25th percentile and top 25th percentile price segments have declined year-over-year, with lower-tier home prices down 3.5% and higher-tier prices down 2.3%. Price per square foot also fell in both segments, confirming that weakness is not isolated to any one portion of the market. This data suggests that while averages remain elevated due to selective high-end transactions, the broader market is undergoing a methodical correction fueled by oversupply and hesitant buyer behavior.

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