Austin Real Estate Market Update – May 23, 2025

Austin Housing Market Breaks Records—but Buyers Aren’t Biting

The Austin housing market just hit another milestone—but it’s not one sellers will celebrate. As of May 23, 2025, active listings have soared to 17,146, officially breaking the all-time record. Yet even as more homes hit the market, buyers remain on the sidelines. Since January, 23,576 homes have been listed in the Austin-area MLS, but only 17,788 have gone under contract—creating a massive 5,788-unit gap, the largest absorption shortfall in over 25 years.

This widening disconnect is redefining the market. Months of Inventory has pushed up to 6.11, a clear signal that Austin has shifted fully into buyer’s market territory. Last year at this time, MOI was 4.99. Now, sellers are contending with longer days on market, increased competition, and shrinking leverage.

One of the clearest signs of market strain is the New Listing to Pending Ratio, which now sits at 0.53 for May. For every two new listings, only one buyer steps up. Year to date, the ratio is 0.66, far below the 25-year average of 0.81. And it’s not for lack of inventory—listing activity is 28.3% above the long-term average. The problem? Demand hasn’t kept pace.

The Activity Index—tracking what percentage of active listings are under contract—has dropped to 22.6%, down from 26.3% a year ago. Meanwhile, more than half of all active listings have had to reduce their asking price. In Austin proper, 52.7% of listings have seen at least one price cut. Outside the city, price pressure is even stronger: Liberty Hill (57.7%) and Lago Vista (60.4%) lead the pack.

Zooming in on the suburbs, inventory is spiking fast. Marble Falls has more than doubled its MOI—from 4.98 to 11.00. Cedar Park also doubled, climbing from 1.93 to 4.11. Leander is up more than 80%. Still, a few cities are bucking the trend: Hutto has trimmed its inventory by 29%, and Del Valle is down nearly 13%.

Prices continue to reset. The median sold price for May is $455,000, down 17.3% from the May 2022 peak of $550,000. The average sold price now stands at $601,809, a 11.8% decline from its high. This isn’t just seasonal—it’s structural. Buyers are driving harder bargains, and sellers are being forced to meet them.

In short: more homes are hitting the market than ever, but buyers are moving cautiously, creating the most lopsided absorption rate in a generation. Competitive pricing still wins—but most sellers are learning the hard way what today’s buyers are willing to pay.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 23, 2025

Embedded PDF: Austin Daily Real Estate Briefing for May 23, 2025 — includes updated statistics on inventory, pricing, buyer demand, and market trends across the Austin area.

Austin Real Estate Market – Frequently Asked Questions (May 23, 2025)

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

As of May 23, 2025, the Austin housing market is facing a historic imbalance between supply and demand. Active listings have reached a new record high of 17,146, topping the previous peak set just four days prior. Year-to-date, 23,576 new residential listings have entered the market—28.3% above the long-term average—yet only 17,788 homes have gone pending, leaving a 5,788-unit absorption gap, the largest on record for this point in the year. The New Listing to Pending Ratio has dropped to 0.53 for May and 0.66 year to date, well below the 25-year average of 0.81, highlighting slow absorption. The Activity Index—the percentage of listings under contract—is at 22.6%, down from 26.3% a year ago. Taken together, these figures confirm a clear shift into a buyer’s market, marked by growing leverage for buyers and rising pressure on sellers.

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

As of May 23, the City of Austin has 5,419 active residential listings. The city’s Months of Inventory (MOI) stands at 6.10, up from 4.36 in January and 33.4% higher year over year. This level of supply places Austin firmly in buyer’s market territory. Several suburban areas have experienced even more dramatic jumps: Marble Falls MOI has soared to 11.00 (up 120.7% since January), Cedar Park is up 112.3%, and Leander has increased 80.4%. However, not all areas are oversupplied—Hutto and Del Valle are seeing tightening inventory, down 29.0% and 12.7% respectively. These localized differences underscore the importance of market-by-market analysis.

What does the New Listing to Pending Ratio of 0.53 indicate for the Austin housing market?

A New Listing to Pending Ratio of 0.53 means that just over half of new listings are going under contract—far short of balanced market absorption. Historically, this ratio has averaged 0.81, so the current level reflects tepid demand relative to surging supply. For sellers, this means intensified competition, longer days on market, and increased likelihood of price reductions. Buyers, on the other hand, are gaining leverage—they can take more time, negotiate more assertively, and expect more concessions. This ratio is a key indicator of a market in flux—and right now, it's clearly tilted in favor of buyers.

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

Buyer activity is slowing. From January through May, only 17,788 homes have gone pending, representing a 1.9% decline from 2024 and falling 0.5% below the long-term average. The Activity Index, currently at 22.6%, continues to drop from last year's 26.3%, signaling weaker engagement overall. Despite more listings hitting the market, buyers are holding back—often due to affordability challenges, interest rate volatility, or expectations of future price drops. Homes are taking longer to sell, and sellers are increasingly forced to adjust pricing to attract offers.

How are Austin home prices trending in May 2025?

Prices continue to soften. The median sold price for May is $455,000, down 17.3% from the market peak of $550,000 in May 2022. The average sold price has declined to $601,809, down 11.8% from its peak. These declines are broad-based, affecting both entry-level and high-end homes. More than 51.6% of active listings across the MLS have had at least one price reduction. In most areas, homes that aren’t priced competitively are sitting longer and seeing fewer showings. With buyer urgency low and inventory climbing, pricing is expected to remain under pressure throughout the summer months and potentially beyond

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Austin Real Estate Market – Frequently Asked Questions (May 23, 2025)

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

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

What does the New Listing to Pending Ratio of 0.53 indicate for the Austin housing market?

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

How are Austin home prices trending in May 2025?

Austin Real Estate Market Update – May 23, 2025 | Daily Briefing