Austin Real Estate Market Update – May 30, 2025

Austin Market Watch: Record Inventory Meets Slower Demand in a Cooling Market

The Austin housing market is entering uncharted territory as supply surges past previous records while buyer activity shows continued restraint. As of May 30, 2025, active residential listings have climbed to 17,377—setting a new all-time high and confirming a sharp inventory buildup. Fueled by 24,656 new listings year to date—up 7.0% from last year and 33.9% above the long-term average—this excess supply is stretching absorption capacity to its limits. The gap between new listings and pending sales has now widened to 5,955 units, the largest disparity in over 20 years.

Pending sales have slowed to 18,701 year to date, down 8.2% compared to the same period in 2024. The New Listing to Pending Ratio remains subdued at 0.66 for the year and 0.57 for May, well below the historical norm of 0.81. These figures reflect an environment where buyers hold the advantage—especially as the Activity Index slips to 22.0% and Months of Inventory expands to 6.18. Sellers are facing longer market times and heavier competition, even in areas that once saw rapid turnover.

Prices continue to recalibrate. The median sold price is $450,425, down 18.10% from the 2022 peak, while the average sold price sits at $597,618—reflecting a $84,000 drop. Over 52% of all active listings have reduced their asking prices, and even the top 25th percentile has seen pricing hold flat or decline on a per-square-foot basis. While some urban cores remain more resilient, most submarkets are feeling the weight of this correction.

Variability across the region remains a defining feature of this market cycle. Marble Falls now sits at 11.0 Months of Inventory—more than doubling the months of inventory since last year—while Cedar Park has climbed from 2.12 to 3.99, an 88% increase. Jarrell and Hutto have both seen sharp gains, with Hutto rising from 2.11 to 3.55 and Jarrell from 2.51 to 4.86. Liberty Hill is holding at 5.81 Months of Inventory, up modestly from 5.29, while Austin proper now stands at 6.06—its highest point since the correction began. Meanwhile, a handful of areas like Del Valle (down from 5.24 to 4.50) and Wimberley (7.57 to 6.08) are showing early signs of stabilization, driven by relatively stronger absorption or restrained listing growth. These contrasts underscore the importance of ZIP-code-level analysis in a market where broad trends can mask localized shifts.

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 30, 2025.

Embedded PDF: Austin Daily Real Estate Briefing for May 30, 2025 — includes updated statistics on inventory, pricing, buyer demand, and market trends across the Austin area.

Austin Real Estate Market – Frequently Asked Questions (May 30, 2025)

What is the current state of the Austin housing market right now?

As of May 30, 2025, the Austin housing market is defined by historic levels of inventory and a sharp decline in buyer absorption. Active residential listings have reached a record 17,377—up 21.8% from one year ago. From January through May, 24,656 new listings have entered the market, representing a 7.0% year-over-year increase and a 33.9% surge above the long-term historical average. However, only 18,701 properties have gone under contract, a drop of 8.2% compared to 2024. This creates a widening supply-demand gap of 5,955 homes, the largest imbalance since 2004. The New Listing to Pending Ratio remains suppressed at 0.57 for May and 0.66 year to date—both significantly below the 25-year benchmark of 0.81. Coupled with a 6.18 Months of Inventory and a 22.0% Activity Index, these metrics confirm that the market is clearly tilted toward buyers, with sellers competing in the most crowded landscape in over two decades.

How much housing inventory does Austin currently have in 2025?

The City of Austin has 5,506 active residential listings, with Months of Inventory now at 6.06—a sharp increase from 4.36 just one year ago. This 39% rise signals that inventory is outpacing buyer demand at a substantial rate. Surrounding cities are showing even more pronounced shifts. Marble Falls leads with 11.0 Months of Inventory (a 102% year-over-year jump), followed by Liberty Hill at 5.81, and Cedar Park at 3.99—nearly doubling since January. These figures reflect a widespread shift into buyer’s market conditions across the metro. Yet, some areas like Del Valle (down from 5.24 to 4.50) and Wimberley (from 7.57 to 6.08) have seen modest inventory contractions due to stronger absorption or lower listing volume. The uneven nature of these shifts underscores why ZIP code-level metrics are critical for strategic pricing, offer negotiations, and timing decisions.

What does a 0.57 New Listing to Pending Ratio mean for Austin real estate?

A New Listing to Pending Ratio of 0.57 means that just over half of newly listed homes are going under contract each month. In a balanced market, this ratio typically hovers around 0.81. The current figure reflects weak absorption, rising competition among sellers, and more cautious buyer behavior. Year-to-date, the ratio is 0.66—still well below normal—reinforcing that buyers are taking longer to act and have more negotiating power. This ratio is especially important for pricing strategy; listings that fail to secure early interest are increasingly subject to price cuts. For buyers, the benefit lies in expanded inventory, greater choice, and more favorable contract terms, especially in submarkets with higher Months of Inventory.

Is buyer demand up or down in the Austin housing market?

Buyer demand in the Austin housing market is trending downward. As of May 2025, only 18,701 homes have gone pending, an 8.2% decline from the same timeframe last year. The Activity Index has dropped to 22.0%, meaning fewer than one in four active listings is under contract. Despite record-high inventory and increased options, affordability concerns, rate sensitivity, and economic uncertainty continue to suppress buyer urgency. This environment has extended average days on market and triggered widespread price reductions across all price tiers. For sellers, this means adjusting expectations and adopting aggressive strategies to remain competitive. For buyers, it creates an opportunity to explore the market with more leverage and less pressure.

Are home prices in Austin rising or falling in May 2025?

Home prices in Austin are still declining as part of a multi-year market correction. The current median sold price is $450,425—down 18.10% from the May 2022 peak of $550,000. The average sold price has also dropped to $597,618, a 12.4% decline or roughly $84,000 below its peak. More than half of all active listings—52.4%—have undergone price reductions. Even higher-end homes in the top 25th percentile are not immune, with recent data showing year-over-year decreases in both price and price per square foot. These pricing dynamics reflect increased inventory, tempered demand, and cautious buyer sentiment. For sellers, precision in pricing is critical. For buyers, the current market offers an unusual combination of lower prices, wider selection, and reduced competition—particularly compared to the frenzied conditions of 2021–2022.

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