Austin’s housing market holds steady with high inventory, slower sales momentum, and a cautious outlook for the months ahead.

Austin’s real estate market continues to reflect a balance shift toward buyers, with 17,609 active residential listings as of today—14.7% higher than the same time last year. While inventory remains below the June 30 peak of 18,146, the sustained supply growth has changed the landscape for pricing and negotiation. A full 59% of active listings have experienced at least one price drop, a clear sign that sellers are adjusting expectations to meet market realities.

From January through August, 35,246 new listings have hit the market, slightly down by 0.7% from last year but still 17.5% above the long-term average. The pace of sales has not matched this listing activity. Year-to-date pending sales stand at 28,228—down 10.4% from 2024 and 3.1% below historical norms. This gap between supply and demand is reflected in the New Listing to Pending Ratio, which sits at 0.69 for the year, below the 25-year average of 0.82. In August so far, the monthly ratio has fallen even further to 0.55, signaling slower absorption and a build-up of available homes.

The Activity Index, a measure of market pace, is now at 19.6%, compared to 21.3% last year—a drop of over 8%. Resale homes are moving more slowly at 16.7%, while new construction maintains stronger momentum at 27.3%. This divide suggests that builders, with incentives and rate buy-downs, are capturing a larger share of active buyers.

Months of Inventory (MOI) has risen to 6.29, up 15.7% from last year’s 5.44. Within the City of Austin, MOI is at 5.54, a 13.1% year-over-year increase. These levels indicate a market favoring buyers, where homes take longer to sell and competition among sellers intensifies. Historically, Austin’s market has averaged closer to 3–4 months of inventory during balanced periods, so today’s numbers show a distinctly supply-heavy environment.

Sales volume is also easing. In August, 2,823 homes have sold so far, bringing the year-to-date total to 20,592—a 4.4% decline from last year, though still 6.4% above average. When adjusted for population growth, sales per 100,000 residents are down 6.7% from 2024 and 21.6% below the long-term average, underscoring how much demand has cooled relative to the city’s expansion.

Pricing trends continue to reflect the market’s correction from the 2022 peak. The average sold price is $624,546, down 8.4% ($57,000) from the high in May 2022. The median sold price is $454,807, a 17.3% ($95,000) drop from peak levels. Compared to 36 months ago, median prices are down 8.35%. Using Austin’s 25-year compound appreciation rate of 5.025%, it would take approximately 46 months—until May 2029—to regain the $544,325 peak median value, assuming the market has already bottomed.

Price trends vary significantly by segment. The top 25% of the market has seen a 3.47% year-over-year increase in price despite a 2.81% drop in price per square foot, suggesting buyers are paying more for larger or more premium homes. In contrast, the bottom 25% of the market is down 0.3% in price and 3.8% in price per square foot, indicating more affordability pressure in entry-level segments.

City-level data highlights mixed performance. Eleven cities in the metro area have higher median prices than a year ago, while 19 have declined. Georgetown, Liberty Hill, and Jarrell have seen some of the steepest inventory growth, contributing to softer pricing pressure, while premium areas like Lakeway and West Austin remain more resilient.

The Sold-to-Active Ratio—a measure of market absorption—stands at 16.02%, far below the historical average of 31.88%. Coupled with a Market Flow Score of 4.30 (versus the long-term norm of 6.60), these numbers confirm a slower, supply-heavy environment. In practical terms, this means homes are taking longer to sell, buyers have more choices, and sellers face a greater need for competitive pricing and presentation.

For buyers, today’s market presents more negotiating room, a wider selection, and less urgency to rush decisions. For sellers, success now depends heavily on correct initial pricing, strategic concessions, and standout property presentation. Investors will note the divergence between new construction and resale performance—opportunities may lie where motivated sellers or overstocked builders are willing to negotiate aggressively.

In the broader context, Austin’s real estate market is not in free fall—it’s in a prolonged adjustment phase following the rapid rise and peak of 2021–2022. Inventory growth, price moderation, and slower absorption suggest this environment will continue into the coming quarters unless demand sees a meaningful lift from interest rate drops or stronger job growth.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for August 11, 2025.​