Austin Real Estate Market Update – May 29, 2025

Austin Housing Market Outlook: Inventory Hits New Highs as Buyers Remain Cautious

The Austin housing market continues its extended rebalancing in the face of mounting inventory and cautious buyer behavior. As of May 29, 2025, active residential listings have risen to 17,218—just shy of the all-time record and nearly 22% higher than a year ago. This unprecedented supply expansion, fueled by a surge in new listings, has widened the gap between inventory and demand to levels not seen since the early 2000s. With 24,363 new homes listed year to date—up 5.8% from 2024 and 32.4% above the long-term average—sellers are facing the most competitive environment in over two decades.

Despite this volume, buyer activity remains muted. Year-to-date pending sales have fallen to 18,561, an 8.9% decline from last year, resulting in a 5,802-unit shortfall. The New Listing to Pending Ratio holds steady at 0.66 for the year and 0.57 for the month—both well below the 25-year average of 0.81. The Activity Index has dropped to 22.3%, and Months of Inventory now stands at 6.13, up from 5.04 one year ago, reinforcing the clear leverage shift toward buyers.

Home prices continue to reflect the cooling market. The median sold price remains at $450,000, down 18.18% from its May 2022 peak of $550,000. The average sold price has declined to $595,388, nearly $87,000 below the high reached three years ago. Price reductions are widespread, now affecting 52.4% of active listings, with some submarkets seeing sharper cuts than others. Even in the top quartile of the market, pricing has softened both in absolute value and on a per square foot basis, underscoring the broad impact of the correction.

Geographically, market conditions are far from uniform. Cities like Marble Falls, Liberty Hill, and Jarrell have seen their Months of Inventory double or more since last year, while pockets such as Del Valle and Wimberley have managed to slightly reduce inventory through moderate buyer traction. Some submarkets, like Austin proper, are holding steady or even showing modest year-over-year price growth, but these are the exception rather than the rule.

At Team Price Real Estate, we track these shifts daily to offer our clients timely and hyperlocal insights. With over 2,000 pages of real-time data across ZIP codes and cities, we provide the clarity needed to navigate a market that remains complex, uneven, and data-driven. Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 29, 2025.

Embedded PDF: Austin Daily Real Estate Briefing for May 29, 2025 — includes updated statistics on inventory, pricing, buyer demand, and market trends across the Austin area.

Austin Real Estate Market – Frequently Asked Questions (May 29, 2025)

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

As of May 29, 2025, the Austin-area housing market remains in a state of prolonged correction, defined by rising inventory and subdued buyer demand. Active residential listings have reached 17,218, just below the all-time record and 21.8% higher than this time last year. From January through May, 24,363 new listings have been recorded—32.4% above the long-term average and 5.8% higher than 2024 levels. Meanwhile, only 18,561 homes have gone under contract, representing an 8.9% decline year over year and creating a supply-demand gap of 5,802 homes—the widest imbalance since 2004. The New Listing to Pending Ratio stands at 0.57 for May and 0.66 year to date, both substantially below the 25-year average of 0.81. The Activity Index, which measures the percentage of active listings under contract, has dropped to 22.3%, further confirming a buyer-leaning market characterized by slow absorption and increased seller competition.

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

The City of Austin currently has 5,445 active residential listings. Months of Inventory has increased to 6.06, up sharply from 4.36 in January and 4.36 in May 2024—marking a 39% year-over-year rise. This expansion reinforces the city's transition into buyer market territory. The rise in inventory is even more dramatic in surrounding areas: Marble Falls now reports 11.00 Months of Inventory, more than double the level recorded one year ago, while Cedar Park and Liberty Hill have seen inventory levels climb over 100% since January. At the other end of the spectrum, supply has contracted in places like Hutto, Del Valle, and Wimberley, which have experienced year-over-year inventory declines of 29.0%, 17.8%, and 17.6%, respectively. These sharp local variations stress the importance of ZIP code-level analysis in both listing and buying strategy.

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 indicates that fewer than six out of every ten new listings are going under contract, pointing to weak buyer absorption in the face of rising supply. With the year-to-date ratio at 0.66—well below the 25-year average of 0.81—the market continues to shift in favor of buyers. This ratio confirms a slowdown in transaction velocity and suggests sellers must adopt more competitive pricing and presentation strategies to attract offers. For buyers, this environment offers expanded choices, longer decision windows, and more negotiating leverage, particularly in higher-inventory areas.

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

Buyer activity is decreasing. Through the end of May, 18,561 homes have gone pending—down 8.9% from the same period last year. The Activity Index has declined to 22.3%, reflecting the fact that less than one-quarter of active listings are under contract. This slowdown is occurring despite the substantial increase in available homes, pointing to persistent affordability challenges, economic uncertainty, and buyer hesitancy around market timing. These conditions have extended average days on market and contributed to price cuts across nearly every submarket.

How are Austin home prices trending in May 2025?

Austin home prices continue to show the effects of a market correction that began in mid-2022. The median sold price for May remains at $450,000, an 18.18% drop from the May 2022 peak of $550,000. The average sold price stands at $595,388, down $87,000, or 12.7%, from its all-time high. Price reductions are affecting 52.4% of all active listings, with deeper discounts common in markets experiencing the sharpest inventory growth. Even the top 25% of the market has not been immune, with year-over-year declines in both median price and price per square foot. These patterns underscore the importance of realistic pricing, as buyers remain firmly in control of negotiations and are unwilling to overpay in a saturated market.

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