Austin’s housing market is holding steady in late summer, but elevated inventory and slower buyer activity are reshaping the balance of power.

The Austin real estate market on August 15, 2025, reflects a city transitioning through a sustained market shift. With 17,494 active residential listings, supply remains significantly higher than last year’s levels, up 15.4% year-over-year, and only slightly off the recent June peak. Notably, 59.4% of listings have seen at least one price drop, signaling continued pressure on sellers to adjust to changing buyer demand. While new listings year-to-date are up 1% over last year and nearly 20% above the 25-year average, buyer activity has slowed. Pending listings are up 3.8% year-over-year for August, but cumulative pendings are still 8.3% below 2024’s pace, with the Activity Index at 19.8%, down from 21.5% a year ago.

Months of Inventory now stands at 6.22 months, up from 5.36 this time last year—a 16.1% increase—marking a clear shift toward a more balanced, even buyer-leaning market in certain segments. The median sold price in Austin sits at $455,000, which is 17.27% below the May 2022 peak, while the average sold price is $612,322, down 10.21% from peak values. Based on the market’s historical 5.027% annual appreciation rate, it could take approximately 49 months—until mid-2029—for median prices to return to peak levels, assuming current market conditions represent the correction bottom.

For buyers, this market offers more choice, greater negotiating power, and less competition than in the past several years. Sellers, however, must contend with longer days on market, the reality of frequent price adjustments, and a need to differentiate their homes through pricing and presentation. Investors will note that the Sold-to-Active Ratio is just 16.13%, far below the historical 31.88% average, signaling a slower turnover environment that may yield more opportunities for aggressive acquisition strategies.

Active Listings and Price Drops

The Austin housing market has not seen this level of supply since mid-2025. Current active listings at 17,494 represent a noticeable expansion from the 15,162 active homes this time last year. With almost six in ten homes experiencing price drops, sellers are clearly responding to buyer pushback on initial asking prices. This trend is widespread across the region, from Georgetown, where 63.9% of listings have reduced prices, to Marble Falls, where over 70% of properties have adjusted downward.

Buyer Activity and Pending Contracts

Despite softer demand overall, pending sales for August are slightly higher year-over-year, suggesting some buyers are returning to the market, possibly motivated by price adjustments. However, the year-to-date gap in pendings shows that 2025 remains a slower-moving year. The New Listing-to-Pending Ratio for the year is at 0.69, well below the long-term average of 0.82, highlighting that inventory is building faster than contracts are being written.

Months of Inventory and Market Balance

Inventory growth has been one of the defining features of this year’s Austin housing forecast. At 6.22 months of inventory, buyers in many submarkets now have more time to make decisions and more leverage in negotiations. Areas like Smithville, Jarrell, and Burnet have seen inventory double or more compared to last year, while Austin proper is up nearly 10% year-over-year and 23.3% year-to-date.

Pricing Trends and Long-Term Projections

The market correction since 2022’s peak has been substantial, with median prices down nearly $100,000 and average prices off by more than $70,000. However, long-term appreciation data reinforces that Austin’s market remains resilient over decades. For long-term homeowners and investors, today’s prices may represent an attractive entry point ahead of the next multi-year growth cycle.

Absorption Rate and Market Flow Score

The low Sold-to-Active Ratio and Market Flow Score of 4.36 confirm that the Austin market is moving at a slower pace than historical norms. For real estate agents, this environment demands sharper pricing strategies, stronger marketing, and more proactive buyer outreach.

What This Means for Different Market Participants

• Buyers: More inventory, more negotiation room, and a better chance to include contingencies that were difficult to secure in past years.
• Sellers: Must compete aggressively on price and presentation, especially given the high percentage of price reductions.
• Investors: An opportunity to target properties with extended days on market or in submarkets where inventory growth has outpaced demand.
• Agents: A need for data-driven advising to help clients understand realistic pricing and timelines.

In summary, the Austin market update for August 15, 2025, underscores a continued transition toward balance, with sellers losing some leverage and buyers gaining more opportunities. While short-term metrics reflect a slower pace, the long-term Austin real estate forecast remains one of gradual recovery once the market stabilizes.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for August 15, 2025.​