Austin Real Estate Market Update – May 28, 2025

Austin Housing Market Faces Prolonged Correction as Supply Surge Outpaces Demand

The Austin-area real estate market remains in a state of oversupply, as record-setting inventory levels and lagging buyer activity continue to reshape pricing dynamics and competition across the region. As of May 28, 2025, active residential listings stand at 17,184—just below Monday’s all-time high and 21.5% above the same time last year. This surge in inventory is creating one of the widest supply-demand gaps seen in two decades, signaling ongoing challenges for sellers and heightened opportunity for buyers.

So far in 2025, a total of 24,166 new listings have entered the market, up 4.9% year over year and a staggering 31.4% above the 25-year average. Yet buyer response continues to weaken. Year-to-date pending contracts total just 18,391, down 9.7% from 2024. This results in a cumulative shortfall of 5,775 homes—the largest year-to-date gap since 2004. The New Listing to Pending Ratio remains at a soft 0.66, while the Activity Index has declined to 22.5%, further confirming buyer hesitancy. Months of Inventory now sits at 6.11, up from 5.02 one year ago—a 21.8% jump that underscores how much buyer leverage has increased.

At Team Price Real Estate, we monitor every shift in market dynamics across the Austin area. With over 2,000 pages of local housing data published on our website, our daily reporting helps clients navigate a market that is increasingly defined by hyperlocal trends. While the region overall is tilted toward buyers, inventory behavior and price trends vary widely by city and ZIP code. For instance, Marble Falls and Jarrell have both seen inventory levels more than double since last year, while Cedar Park has jumped 107% in Months of Inventory year to date. Meanwhile, Del Valle, Wimberley, and Hutto are among the few markets showing a contraction in supply.

Prices continue to show the effects of the correction cycle. The median sold price is now $450,000, representing an 18.18% decline from the May 2022 peak of $550,000. The average sold price has dropped to $594,104, an 12.88% decrease from its peak. Over half of all active listings—51.9%—have experienced at least one price reduction, with more aggressive discounting seen in slower-absorbing areas like Liberty Hill and Marble Falls. Even the top 25% of the market has softened, with high-end homes seeing a 1.5% drop in median price and a 2.8% dip in price per square foot.

The market continues to be shaped by location-specific performance. While Austin’s median sold price is up 1.3% year over year, nearby Buda has declined by 3.6%. Other major cities like Round Rock, Kyle, and Pflugerville have all experienced rising inventory and a more sluggish pace of contract activity, highlighting the need for granular analysis in pricing, marketing, and offer strategy.

Whether you're preparing to list, exploring a purchase, or simply watching the trajectory of the local housing market, the data points clearly to a sustained correction phase. Buyers remain in control across most segments, and sellers must price realistically to capture what demand remains.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 28, 2025.

Embedded PDF: Austin Daily Real Estate Briefing for May 28, 2025 — includes updated statistics on inventory, pricing, buyer demand, and market trends across the Austin area.

Austin Real Estate Market – Frequently Asked Questions (May 28, 2025)

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

As of May 28, 2025, the Austin-area housing market is contending with elevated inventory and waning buyer demand. Active residential listings sit at 17,184—just shy of the all-time high and 21.5% higher than a year ago. From January through May, 24,166 homes have been listed, which is 31.4% above the historical average and 4.9% higher than the same period in 2024. In contrast, pending contracts total 18,391—a 9.7% decline year over year—creating a supply-demand gap of 5,775 homes, the largest shortfall in over two decades. The New Listing to Pending Ratio stands at 0.57 for the month and 0.66 year to date, both well below the 25-year average of 0.81. The Activity Index, which measures the share of active listings under contract, has dropped to 22.5% from 26.1% a year ago. These trends signal a market correction still in progress and confirm a strong tilt toward buyer-friendly conditions.

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

The City of Austin currently reports 5,425 active residential listings. Months of Inventory has risen to 6.10, up from 4.36 in January and marking a 40.0% increase year over year. This shift firmly positions Austin in buyer’s market territory. Inventory expansion is even more pronounced in nearby cities: Marble Falls has more than doubled its inventory year over year, reaching 11.00 Months of Inventory—up 102.4%. Cedar Park and Round Rock have also seen inventory levels nearly double compared to 2024. Conversely, cities like Hutto, Del Valle, and Wimberley have experienced year-over-year inventory declines of 29.6%, 20.8%, and 18.1%, respectively. These variations emphasize the importance of analyzing inventory and pricing trends at the hyperlocal level.

What does the New Listing to Pending Ratio of 0.57 indicate for the Austin housing market?

A New Listing to Pending Ratio of 0.57 means that fewer than six of every ten new listings are going under contract, indicating that inventory is building faster than it’s being absorbed. This figure, alongside the year-to-date ratio of 0.66, reflects a consistent imbalance between new supply and buyer demand. Compared to the 25-year average of 0.81, these ratios suggest a softening market where sellers must adjust pricing and marketing strategies to stay competitive. For buyers, the current ratio signals an environment with ample choices, increased negotiating power, and reduced urgency.

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

Buyer activity is decreasing. Year to date, 18,391 homes have gone pending—down 9.7% from the same period in 2024. The Activity Index has fallen to 22.5%, indicating that less than one-quarter of active listings are currently under contract. Despite the surge in inventory, demand has not kept pace, leading to slower absorption rates. This decline in buyer urgency reflects broader affordability concerns, hesitancy around market timing, and increased price sensitivity, all of which contribute to extended market times and downward pricing pressure for sellers.

How are Austin home prices trending in May 2025?

Home prices in Austin continue to reflect the effects of a multi-year correction. The median sold price for May is $450,000, an 18.18% decline from the May 2022 peak of $550,000. The average sold price now stands at $594,104, down 12.88% from its peak of $681,939. Price reductions are widespread, with 51.9% of all active listings having seen at least one price drop. The bottom 25th percentile of listings has seen a 3.4% decline in median price, while the top 25th percentile has dropped by 1.5%. Price per square foot is down across both market segments. These figures point to increased buyer leverage, and only homes priced in line with current market conditions are moving efficiently.

Have a Question or Want to Dive Deeper?

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