Austin Real Estate Weekly Market Update – August 21, 2025

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, August 21, 2025 at 08:15 am

The August 21, 2025 Austin real estate market update shows a housing market continuing to rebalance as inventory expands and prices shift. Across the Austin-Area MLS, active listings are up 7.4% year over year, driving Months of Inventory to 6.32 months, the highest in recent years. Buyers now have more leverage and choice, while pricing trends remain split—regional median prices are nearly flat, but the City of Austin is posting stronger gains, with the median sold price up 6.4% to $593,750. These trends signal a market still well below peak values but moving steadily toward balance, offering fresh opportunities for buyers, sellers, and investors. 

Inventory Expands Across the Austin Housing Market

The Austin real estate market continues its steady move toward balance, with more homes available and pricing trends that reflect both stability and growth. Across the Austin-Area MLS, active residential listings have climbed to 17,335, up 7.4% from 16,136 at the same time last year. Months of Inventory has risen from 5.49 to 6.32 months, a 15% increase that represents a 1.2× expansion in supply relative to the current pace of sales. Inside the City of Austin, the supply increase has been even stronger, with active listings rising 15.1% year over year from 4,994 to 5,749, and Months of Inventory climbing from 5.94 to 6.76 months, a 13.8% gain. For buyers, this means more choice and less competition; for sellers, it means pricing accuracy and market positioning have become more critical.

Austin Housing Prices Show Year-Over-Year Growth

Unlike recent periods where prices were mixed, this week’s update shows all major price categories posting year-over-year gains. In the Austin-Area MLS, the average list price increased 4.4% to $594,721, while the median list price rose 1.3% to $444,900. On the sales side, the average sold price climbed 4.3% to $573,730, and the median sold price edged up 1.2% to $430,000. These positive shifts indicate that even with more supply, buyers are still transacting at higher price points than last year, especially in the upper tiers of the market.

Within the City of Austin, pricing strength is even more evident. The average list price advanced 6.8% year over year to $804,077, while the median list price rose 4.3% to $600,000. Closed sales also reflect this upward trend: the average sold price is up 6.5% to $769,919, and the median sold price increased 6.4% to $593,750. These across-the-board increases mark Austin as more resilient than the region overall, signaling steady demand in the urban core even as inventory expands.

Regional and ZIP Code-Level Market Performance

Market conditions remain uneven across Central Texas, though the trend is toward stability. Among the 30 tracked cities, 50% posted month-over-month median price increases, while 47% recorded declines. On a year-over-year basis, 47% of cities are up and 53% are down, showing that while some submarkets are regaining traction, others continue to normalize. From the peak over the past year, all 30 cities remain below their highs.

At the ZIP code level, patterns are similar. Out of 75 areas analyzed, 47% recorded monthly price increases, 49% decreased, and the remainder held steady. On a year-over-year basis, 44% are up while 53% are down. From their peak, only one ZIP code has posted gains, with 74 still below their 12-month highs. These figures highlight that while the broader averages are improving, price recovery is uneven and highly local.

Negotiation and Seller Concessions

Negotiation remains a defining feature of today’s market. In August, 69.36% of closed sales were below list price, compared to 65.92% last month. Homes selling at list price dropped from 21.88% to 18.29%, while 12.35% sold above asking, essentially flat compared to July but lower than the same period in 2024. The average sold-to-list price ratio now sits at 96.97%, underscoring that buyers are successfully negotiating discounts and that sellers must adjust to a more competitive environment.

Prices Remain Below Peak Levels

Even with year-over-year gains, prices remain well below their historic highs reached in 2022 and early 2025. In the Austin-Area MLS, the average list price is down 12.3% from its April 2025 peak, while the median list price is 16.8% below its May 2022 high. The average sold price is 10.9% under its May 2022 peak, and the median sold price is down 17.3%. On a per-square-foot basis, values have fallen 20–24% from their highs.

In the City of Austin, the declines are somewhat smaller but still significant. The average list price is down 15.7% from its April 2024 high, and the median list price is 16.5% below its May 2022 peak. The average sold price has fallen 8.6% from its May 2022 peak, while the median sold price is off 15.9%. On a price-per-square-foot basis, Austin homes are down 22–24% compared to their peak values.

What This Means for Buyers, Sellers, Investors, and Agents

For buyers, this is one of the most favorable environments in recent years. Inventory is growing, negotiation power is increasing, and prices—while up from last year—are still far below peak levels. This combination creates opportunities to secure homes with better terms and less competition.

For sellers, strategy is everything. While prices are higher year over year, buyers expect concessions and will push for discounts. Homes priced competitively are still moving, especially in the City of Austin where demand is strongest.

For investors, the market continues to offer attractive entry points. Year-over-year gains combined with deep discounts from peak values create opportunities to acquire properties at a relative value, particularly in neighborhoods poised for long-term appreciation.

For agents, the story is local. Citywide and regional numbers show improvement, but the real shifts are happening at the ZIP code and neighborhood levels. Accurate, data-driven guidance will be essential for helping clients navigate a market that is neither overheated nor falling, but steadily normalizing toward balance.​

Austin Housing Market Questions and Answers 

1. Is Austin currently a buyer’s market or a seller’s market?

Austin is best described as a neutral market right now. Inventory has expanded 7.4% year over year across the MLS, pushing Months of Inventory up to 6.32 months, which sits near balance. That means neither buyers nor sellers hold full control. Some areas with slower demand and higher inventory lean toward a buyer’s market, while hot ZIP codes inside Austin with stronger demand still favor sellers. The key takeaway is that conditions are highly localized, so the type of market depends on the neighborhood, price point, and property type.

2. Why are prices up compared to last year but still down from the peak?

Year-over-year, all major pricing metrics are up — average sold prices rose 4.3% region-wide, and median sold prices increased 1.2%. In the City of Austin, the gains are even stronger, with median sold prices up 6.4%. However, compared to the 2022 and early 2025 peaks, prices remain 10–20% lower depending on the metric. This reflects a market correction after years of rapid appreciation. Today’s numbers show the market is not in decline but rather finding a new balance at levels below the historic highs.

3. What does more inventory mean for buyers?

More inventory gives buyers greater choice and more negotiating power than they had a few years ago. With 17,335 active listings across the MLS (up 7.4% YoY), buyers don’t have to rush into bidding wars. In fact, nearly 70% of homes sold in August closed below their original list price, while only 12% sold above asking. This creates opportunities for buyers to shop carefully, negotiate concessions, and secure more favorable terms, especially in ZIP codes where supply is outpacing demand.

4. Should sellers be worried about the increase in inventory?

Not necessarily, but sellers do need to adjust their expectations. With more homes on the market, buyers have options, which makes pricing strategy critical. The data shows that competitively priced homes are still selling — the City of Austin saw median sold prices climb 6.4% year over year, proving demand is strong in key areas. However, overpricing a property in this market often leads to price reductions and longer time on the market. Sellers who price realistically and prepare their homes well still find plenty of success.

5. Are bidding wars still happening in Austin?

Bidding wars are far less common than in the peak years, but they still occur in high-demand neighborhoods with limited supply. Right now, only 12.35% of homes sold above list price — down from double that figure during the 2021–2022 surge. While multiple offers are not the norm, homes that are well-priced, move-in ready, and located in popular Austin ZIP codes can still generate competitive interest. The difference is that buyers today are more disciplined and less willing to overpay.

6. How should investors look at the Austin housing market right now?

For investors, today’s market presents a unique opportunity. Prices are up from last year but still 10–20% below peak values, meaning acquisition costs are lower than they were during the height of the boom. While rent growth has cooled, population growth and long-term demand drivers remain strong in Central Texas. Investors can focus on neighborhoods where pricing is still soft compared to peaks, knowing that long-term fundamentals support appreciation once the market fully stabilizes.

7. What advice should buyers and sellers follow in a neutral market?

In a neutral market, both sides need to be strategic. Buyers should take advantage of the expanded inventory, negotiate concessions, and lock in properties while prices are still below peak levels. Sellers should focus on pricing homes realistically, staging for maximum appeal, and being prepared to negotiate. For both groups, the most important step is to work with an agent who understands hyperlocal trends — because one ZIP code may lean toward a buyer’s market, while the neighborhood next door could still favor sellers.​