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<h2>Monday Touch Point: Weekly Austin Real Estate Market Updates </h2>​Stay Ahead with Expert Insights from Team Price Real Estate

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Welcome to Monday Touch Point, your go-to source for weekly Austin real estate market updates! Every Monday, I’m thrilled to bring you the latest data, trends, and forecasts straight from the front lines of the industry. With nearly two decades as a broker at Team Price Real Estate, I dive into active inventory, new listing-to-pending ratios, bond market movements, and economic shifts—everything you need to navigate this ever-changing landscape. Whether you’re an agent, buyer, or seller, these hour-long sessions, recorded live and embedded here, offer actionable insights to keep you ahead in Austin’s dynamic market. Watch now and explore our archive by date!

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Austin Real Estate Sales Data Reveals a Significant Drop in February 2025The Austin real estate market has always been a hot topic, especially in the six-county region that includes Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. Thanks to detailed data from Team Price Real Estate, revised on March 2, 2025, we can see exactly how many <a href="https://teamprice.com/sales-density-population-and-realtors">properties sold in February 2025</a> and how that compares to past years. The numbers tell a clear story: 1,675 properties were sold across this area in February 2025, a sharp decline from the 2,364 sold in February 2024. That’s a year-over-year decrease of 29.1%, one of the biggest drops in over two decades of records. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250302031039.png" alt="" width="" height="" style=""></figure></div>​To understand this shift, let’s look at the historical data. Team Price Real Estate tracks <a href="https://teamprice.com/sales-density-population-and-realtors">sales back to 2000</a>, showing an average of 1,787 properties sold each February across their market area. In 2025, the 1,675 sales figure falls 6.3% below that long-term average, which isn’t too surprising on its own. However, compared to February 2024’s stronger performance of 2,364 sales, the drop stands out. In fact, the data shows that the largest year-over-year February decline before this was 30.1%, from 1,680 in 2008 to 1,174 in 2009. This year’s 29.1% decrease is almost as dramatic, signaling a notable change in the market.Breaking it down by county offers more insight into where these sales happened. In Travis County, which includes cities like Austin and Pflugerville, 778 <a href="https://teamprice.com/sales-density-population-and-realtors">properties sold in February 2025</a>. Austin alone accounted for 610 of those sales, down from 765 the year before. Williamson County, home to Georgetown and Round Rock, saw 511 sales, with Georgetown dropping to 149 from 244 in 2024. Bastrop County recorded 82 sales across cities like Bastrop and Elgin, while Hays County, including Kyle and San Marcos, totaled 195 sales. Caldwell County had just 13 sales, with Lockhart falling to 9 from 37, and Burnet County logged 25 sales, with Burnet itself rising to 14 from 8. Adding these up gives us the 1,675 total, matching the Sales Density table from Team Price Real Estate. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250302031147.png" alt="" width="" height="" style=""></figure></div>​The data also shows how <a href="https://teamprice.com/sales-density-population-and-realtors">sales per person and per real estate agent</a> have shifted. In February 2025, the rate of sold properties per 100,000 population was 65.99, well below the historical February average of 95.2. Back in 2006, during a peak year, this rate hit 121.83, and even in 2024 it was 95.37. This year’s lower rate suggests fewer homes are selling relative to the area’s population, estimated at around 2.3 million for the Austin metro. Meanwhile, the number of Realtors per 100,000 people rose to 747 in February 2025, 7.5% above the average of 695. With more agents and fewer sales, the sales per 1,000 Realtors dropped to 88.31, a steep 50.4% below the average of 177.9.Looking at monthly trends adds another layer. Historically, February sales increase by 18.7% over January, but in 2025, they fell 9.4% from January’s 1,848 to 1,675. This bucks the usual pattern, where spring brings a sales uptick. For example, in 2024, sales rose from 1,833 in January to 2,364 in February, a 29% jump. The 2025 decline aligns with a broader slowdown, as seen in the cumulative sales from January to February, which hit 6,000 properties—6.7% above the average but still reflecting a weaker February.City-specific numbers highlight the uneven impact across the region. In <a href="https://teamprice.com/sales-density-population-and-realtors">Austin, sales fell</a> 20% from 765 in February 2024 to 610 in 2025. Georgetown saw a 39% drop, from 244 to 149, while Bastrop plummeted 46%, from 69 to 37. Kyle’s sales decreased 43%, from 122 to 69, and Lockhart took a 76% hit, dropping from 37 to 9. On the flip side, Burnet bucked the trend with a 75% increase, from 8 to 14, though its small volume keeps it a minor outlier. Across 30 cities tracked over the past 12 months, the average year-over-year change was a 19% decline, but the six-county total’s 29.1% drop shows a deeper regional slump.The data also includes ZIP code details, offering a granular view. For instance, in Austin’s 78704 ZIP code, sales fell from 34 to 29, a 15% dip, while 78723 saw a 38% decline from 40 to 25. In Georgetown’s 78628 ZIP, sales dropped 38% from 116 to 72. These figures, combined with the county totals, confirm the widespread nature of the slowdown. The Team Price Real Estate report notes this 29.1% year-over-year drop as one of the sharpest in its records, second only to the 2009 plunge during the Great Recession.For real estate professionals, the numbers paint a challenging picture. With 747 Realtors per 100,000 people in February 2025, up from 796 in 2024, the agent pool grew while sales shrank. This pushed the sales per 1,000 Realtors down to 88.31 from a higher rate the previous year, when 2,364 sales spread across fewer agents yielded better productivity. Historically, peak years like 2006 saw 121.83 sales per 100,000 population and stronger per-agent numbers, contrasting sharply with 2025’s figures.Wrapping up, the February 2025 data from Team Price Real Estate shows a six-county Austin area with 1,675 sold properties, down 29.1% from 2,364 in 2024. This drop, paired with lower sales per population and per Realtor, plus an unusual month-over-month decline, marks a significant shift in the market. Whether looking at the big picture or drilling into city and ZIP code specifics, the numbers reveal a region facing a tougher real estate landscape than it has in years. ​

Explore the latest Austin real estate data for February 2025, showing a 29.1% drop to 1,675 sold properties across Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties. Dive into detailed sales figures, historical trends, and city-specific changes from Team Price Real Estate

Austin Real Estate Sales Drop 29.1% in February 2025: Full Data Breakdown

Austin Real Estate Market Update: February 2025 <a href="https://teamprice.com/activity-index-city">Activity Index Analysis</a> The Austin real estate market continues to evolve, with the February 2025 Activity Index shedding light on shifting buyer and seller dynamics. The <a href="https://teamprice.com/activity-index-city">Activity Index</a>, calculated as pending sales divided by the total number of active and pending listings, serves as a key metric in understanding market absorption. February 2025’s Activity Index was recorded at 23.88%, marking a notable decline from February 2024’s 27.99%. This downward shift signals a continuation of the cooling trend observed since the market’s peak in 2021. Looking at historical trends, the Activity Index reached its highest levels in 2021, when February’s reading was 58.63%. That period reflected an extreme seller’s market, fueled by record-low interest rates and high buyer demand. However, as economic conditions changed, so did market absorption. By February 2022, the index had fallen slightly to 58.58%, and by February 2023, it had plummeted to 27.67%. The trend continued in 2024, and the latest February 2025 figure represents a 47.4% drop from the 2021 peak, showing a clear shift in market conditions. Examining the broader market cycle, 2021 saw the highest annual average Activity Index at 58.45%, while 2025’s year-to-date average sits at just 23.08%. This decline reflects reduced buyer urgency, largely influenced by rising interest rates and affordability challenges. The year-over-year decrease of 14.7% from February 2024 to February 2025 indicates that demand has yet to rebound despite slight improvements in economic stability. Seasonality has historically played a role in the Austin market, with spring months bringing an uptick in sales activity. However, 2025 has not followed this typical trend so far. January’s Activity Index was 22.29%, reflecting a weaker start to the year than in previous cycles. February’s slight increase suggests potential stabilization, but the numbers remain significantly below historical norms. The next key indicator will be March 2025’s data. If it remains under 30%, it will confirm that the market is operating under prolonged soft conditions rather than experiencing a temporary seasonal dip. The implications of the <a href="https://teamprice.com/activity-index-city">declining Activity Index</a> are evident for both buyers and sellers. Buyers in the Austin market are now encountering less competition than in previous years. Homes are sitting on the market longer, giving buyers more negotiating power and the opportunity to secure better terms. Sellers, on the other hand, are facing increased pressure to price properties correctly. With lower absorption rates, competitively priced homes are more likely to attract interest, while overpricing may lead to extended days on market and potential price reductions. Looking ahead, the direction of interest rates will be a crucial factor in determining whether market conditions improve. If mortgage rates begin to decline, demand could start to recover, potentially pushing the Activity Index back toward historical averages. However, if economic uncertainty persists, the current absorption levels may hold steady or decline further. As the Austin market adapts to these conditions, all eyes will be on the coming months to determine whether a shift toward stabilization or continued softness will define 2025’s real estate landscape. The February 2025 <a href="https://teamprice.com/activity-index-city">Activity Index</a> provides valuable insight into the market’s trajectory, serving as a key indicator for buyers, sellers, and industry professionals navigating Austin’s evolving real estate market.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250227084850.png" alt="" width="" height="" style=""></figure></div>

The February 2025 Activity Index reveals key trends in the Austin real estate market, showing a 47.4% decline from its 2021 peak. Learn what this means for buyers and sellers as market absorption rates shift

Austin Real Estate Market Update: February 2025 Activity Index Trends

Buyer’s Market Grows in Austin: 2025 Real Estate Data Revealed : The Austin real estate market has undergone a significant transformation between February 2024 and February 2025. With shifting inventory levels and evolving market conditions, buyers and sellers are navigating a landscape that looks markedly different from a year ago. A detailed analysis of the data reveals a notable cooling trend, with fewer <a href="https://teamprice.com/type-of-market-zip-code">seller’s market zip codes</a> and an increase in <a href="https://teamprice.com/type-of-market-zip-code">neutral and buyer’s markets</a>, suggesting a shift toward more balanced conditions.​In February 2024, the market was heavily tilted in favor of sellers, with 45 zip codes categorized as seller’s markets, meaning they had less than 4.9 months of inventory. Neutral markets, which have 5 to 6.9 months of inventory, accounted for 12 zip codes, while 18 zip codes were considered buyer’s markets, with over 7 months of inventory. A year later, in February 2025, the number of seller’s markets dropped to 34 zip codes, while neutral markets expanded to 18 zip codes, and buyer’s markets grew to 23 zip codes. This redistribution highlights the rising availability of homes and a cooling demand.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250227055522.png" alt="" width="" height="" style=""></figure></div> <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250227060956.png" alt="" width="" height="" style=""></figure></div>​ The shift is further underscored by changes in inventory levels. The median months of inventory increased from 4.32 in February 2024 to 5.27 in February 2025, while the average months of inventory rose from 5.14 to 5.85. These numbers indicate that homes are staying on the market longer, giving buyers more negotiating power and making it less favorable for sellers compared to the previous year.The impact of this transition is evident in home prices across various zip codes. In Downtown Austin (78701), the median home price fell from $850,000 to $765,000, a 10% decrease. Similarly, East Austin’s 78702 zip code saw a sharper decline of 18%, with the median price dropping from $849,945 to $699,992. South Austin (78704) also experienced a decrease, with median prices shifting from $985,000 to $930,000. While some luxury markets, such as West Austin’s 78703, maintained relative stability with only a 2.5% decrease, the broader trend suggests a slowdown in price growth across most areas.Days on Market (DoM) also provide insight into the market’s cooling. In Austin’s core neighborhoods, such as 78701, 78702, and 78703, the median DoM in February 2024 ranged from 56 to 86 days. By February 2025, that range tightened to 45 to 53 days, indicating that despite the overall slowdown, well-priced properties in central locations are still moving. However, suburban markets tell a different story. Areas like Pflugerville (78660), Cedar Park (78613), and Leander (78641) saw DoM increases, with homes taking longer to sell compared to the previous year.Among all zip codes, some experienced the most significant surges in inventory. The largest increase in active homes for sale occurred in Smithville (78957), where inventory rose by 85%, followed by Georgetown (78626) with a 78% increase. Southwest Austin’s 78749 saw a 72% jump, while 78724 in East Austin experienced a 62% rise. Meanwhile, Hutto’s 78634 inventory climbed 62% as well. These increases, coupled with significant growth in months of inventory, further emphasize the cooling market conditions. Notably, Hutto’s months of inventory rose by 175%, while Georgetown (78626) saw an increase of 156%.The increase in available homes and inventory duration is reshaping market dynamics. In 2024, multiple-offer scenarios and seller-driven negotiations were common, but the current data suggests buyers now have more leverage. Sellers need to be more competitive with pricing and offer incentives to attract buyers. While some neighborhoods are holding steady, many are adjusting to these changing conditions, making it crucial for buyers and sellers to stay informed about evolving trends in the Austin real estate market.​

Discover how the Austin real estate market has shifted from 2024 to 2025. Explore inventory growth, price changes, and the transition toward a more balanced market

Austin Housing Market Cools: Inventory & Prices Shift in 2025

Austin Area Home Prices in 2025: A Data-Driven Analysis of Market TrendsThe Austin area housing market has experienced notable shifts in 2025, with some cities seeing home prices rise while others have faced declines. By analyzing both average and median price changes across the top 30 cities in the region, we can gain insight into how the market is evolving.So far in 2025, only four cities in the Austin area have seen an <a href="https://teamprice.com/appreciation-year-over-year-city">increase in their average home prices</a> compared to 2024. Lockhart has led the way with a 7.9% increase in average sold price, followed by Manor at 4.8%, Liberty Hill at 1.2%, and Smithville at 6.9%. However, the majority of cities in the region have experienced price declines. Cities such as Lakeway (-23.3%), Dale (-28.5%), and Manchaca (-17.1%) saw some of the steepest decreases in average home prices, signaling potential market corrections in these areas. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250227053709.png" alt="" width="" height="" style=""></figure></div>​ <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250227053720.png" alt="" width="" height="" style=""></figure></div> The median home price trends tell a slightly different story. Eight cities have reported an <a href="https://teamprice.com/appreciation-year-over-year-city">increase in their median home prices</a> in 2025, reflecting a more mixed picture of price movements. Driftwood has shown the most significant increase, with median prices rising by 13.9% compared to 2024. Smithville follows with a 7.0% increase, Marble Falls with 3.9%, and Cedar Park with 3.0%. On the other hand, cities such as Lakeway (-14.8%), Leander (-11.1%), and Burnet (-10.7%) have experienced notable declines in median home prices.The fact that more cities saw an <a href="https://teamprice.com/appreciation-year-over-year-city">increase in median prices</a> than in average prices suggests a potential shift in buyer demand toward more affordable homes. This trend could indicate that higher-end properties are seeing slower sales, while homes at lower price points remain competitive. In areas like Driftwood and Smithville, rising median prices could reflect strong demand for mid-range homes, while the overall declines in cities like Lakeway may point to adjustments in the luxury market.Another important takeaway from this data is the overall downward trend in home prices across much of the Austin area. The average price decline across all cities analyzed stands at approximately -5.6%, while the median price decline is slightly lower at -3.5%. This trend suggests that while some cities are holding steady or even growing in price, the broader market is facing headwinds that have impacted home values in many areas.Market shifts like these are important for buyers, sellers, and investors alike. For buyers, the softening prices in many areas may present new opportunities to purchase homes at more favorable price points. Sellers in cities where prices are rising may still benefit from strong demand, while those in areas with declining prices may need to adjust their pricing strategies to remain competitive.As we move further into 2025, it will be crucial to monitor these trends to see whether the price declines continue or if the market begins to stabilize. By keeping a close eye on city-level data, market participants can make informed decisions based on the latest developments in the Austin area real estate market.&nbsp;FAQ Section:1. What factors are influencing home price changes in the Austin area in 2025?Several factors are impacting home prices in the Austin area this year, including interest rates, inventory levels, and local economic conditions. Cities experiencing price growth are likely seeing strong demand and limited supply, while areas with declining prices may have higher inventory or shifting buyer preferences.2. Which Austin area cities have the highest home price appreciation in 2025?Lockhart, Driftwood, and Smithville have experienced some of the highest home price increases in 2025. These cities saw median and average price growth, suggesting sustained demand for homes in these areas.3. Should buyers wait to purchase a home in the Austin area, given the price declines?Market conditions vary by location, but the overall downward trend in home prices may present a good opportunity for buyers. Those looking to purchase should monitor local market trends, interest rates, and inventory levels to determine the best time to buy.

Explore the latest Austin area real estate trends for 2025. Find out which cities saw home price increases and which ones declined, with a detailed analysis of average and median price shifts across the region

Austin Area Home Prices in 2025: Which Cities Are Rising and Falling?

The MBA Purchase Index and Its Impact on Austin Area Real Estate The <a href="https://teamprice.com/mba-purchase-index">Mortgage Bankers Association (MBA) Purchase Index</a> is a crucial leading indicator of housing market activity, measuring the volume of mortgage loan applications for home purchases. As one of the most reliable predictors of future home sales, its fluctuations provide valuable insight into market trends. The latest data shows that the Purchase Index for February 19, 2025, stands at 144.0, significantly below the historical average of 235.01. This suggests a slower pace of mortgage applications, reflecting broader affordability challenges in the housing market. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250219122004.png" alt="" width="" height="" style=""></figure></div> Recent data from the MBA Purchase Index indicates shifts in homebuyer demand, directly influencing the Austin housing market. With a recent decline in the index due to higher mortgage rates, Austin has seen a corresponding slowdown in pending home sales. According to the latest <a href="https://teamprice.com/30-year-fixed-mortgage-rate">30-Year Fixed Mortgage Rate</a> report, interest rates have remained above 7%, which has impacted <a href="https://teamprice.com/affordability">affordability</a> and reduced the number of active buyers in the market. As a result, <a href="https://teamprice.com/active-residential-listings">Austin’s residential inventory</a> has increased by 17.6% year-over-year, with active listings rising from 11,162 in February 2024 to 12,079 in February 2025. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250219122206.png" alt="" width="" height="" style=""></figure></div>​ While higher mortgage rates have limited affordability, recent fluctuations in the MBA Purchase Index suggest that buyers are adjusting their expectations. A slight stabilization in rates has allowed some buyers to re-enter the market, particularly in areas where pricing has adjusted downward. However, demand remains subdued compared to peak levels seen in prior years, reflecting an ongoing transition from a seller’s market to a more balanced environment. The <a href="https://teamprice.com/market-cycle">Market Cycle</a> report suggests that Austin is currently experiencing a neutral to slightly buyer-favorable market, where listings remain active for longer periods, and sellers are increasingly willing to negotiate on price.The shift in market dynamics is evident in buyer behavior. The Traffic of Prospective Buyers Index for February 2025 shows that open house attendance and mortgage pre-approvals have declined, suggesting that many potential buyers are delaying home purchases until economic conditions improve. Despite this, Austin remains a desirable market due to its strong employment growth and continued in-migration, which provides long-term stability even in slower housing cycles. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250219122135.png" alt="" width="" height="" style=""></figure></div>​ The interplay between the MBA Purchase Index, mortgage rates, and inventory levels will continue to shape Austin’s housing market. If mortgage rates decline in the latter half of 2025, the Purchase Index could see a stronger rebound, leading to increased buyer activity and market stabilization. In the meantime, real estate professionals and buyers must navigate a market where affordability and interest rates remain key determinants of housing demand.&nbsp; FAQ Section1. What is the MBA Purchase Index, and why does it matter? The MBA Purchase Index measures mortgage loan applications for home purchases. It serves as a leading indicator of housing market activity, helping to predict future home sales volume. A declining index suggests weakening demand, often due to rising mortgage rates or affordability issues.2. How are rising mortgage rates affecting the Austin housing market? With mortgage rates hovering above 7%, Austin homebuyers have seen their purchasing power shrink, leading to a 17.6% increase in housing inventory as demand slows. Higher rates have also discouraged refinancing, keeping many homeowners in their existing homes.3. Will Austin’s housing market recover in 2025? If mortgage rates decline later in 2025, Austin could see renewed buyer activity. However, affordability concerns and economic conditions will play a key role. The MBA Purchase Index trends will provide early indicators of when the market may stabilize.

The MBA Purchase Index dropped to 144.0 in February 2025, indicating slower mortgage applications. With Austin’s housing inventory up by 17.6% and mortgage rates staying above 7%, homebuyers are facing new affordability challenges. Learn how these trends are shaping the Austin real estate market

How the MBA Purchase Index is Reshaping Austin’s Housing Market

Austin Housing Market : Insights into Recent Trends and Market CorrectionThe Austin real estate market has experienced a significant shift in the past few years, transitioning from rapid appreciation to a period of stabilization. The median home price in Austin soared from $305,000 in early 2020 to a peak of $550,000 in May 2022. However, as mortgage rates increased and economic conditions shifted, prices adjusted downward, with the median home price settling at $400,000 by early 2025. This market correction has predominantly impacted the lower and mid-tier price points, while luxury properties have remained stable or even appreciated.How Market Correction Affects Different Price SegmentsOne of the most noticeable aspects of Austin's housing shift is the way different price tiers have been affected. The lower and mid-tier segments have seen more significant declines, while luxury homes have retained or even gained value. Data from <a href="https://teamprice.com/percentile-analysis">Team Price Real Estate’s Percentile Analysis</a> illustrates this clearly. For instance, the 10th percentile home price across various cities in the Austin metro area indicates how entry-level buyers are faring. In Jarrell, the lowest 10% of homes are priced at $249,350, while in Austin, the threshold is much higher at $314,870. This spread shows that affordability varies significantly based on location, with areas further from the city center offering lower-cost options. Meanwhile, in the luxury market, homes in the 90th percentile in Austin are priced at $2,157,500, while in surrounding areas such as Dripping Springs ($2,396,500), Spicewood ($2,492,000), and Wimberley ($2,156,500), luxury properties continue to demand premium pricing. This suggests that while demand for mid-priced homes has softened, high-end buyers are still actively purchasing, contributing to price stability in the luxury segment. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250219115301.png" alt="" width="" height="" style=""></figure></div>​ Year-over-Year Changes and Market TrendsA closer look at year-over-year trends from February 2024 to February 2025 reveals key patterns in home prices and sales volume. In Austin, total sales declined by 23.3%, reflecting a slowdown in transaction activity. Additionally, the median price per square foot dropped by 7.3% at the 50th percentile, a sign that home values in the mid-market range have softened. However, not all cities in the metro area have followed the same trajectory.&nbsp;Driftwood saw a dramatic 196.7% increase in sales, driven by high demand in luxury homes, particularly at the upper price tiers.&nbsp;Georgetown and Cedar Park saw moderate declines of 7.2% and 10.4%, respectively, showing a slower but still present cooling effect.&nbsp;Elgin saw a surprising 105.6% increase in sales activity, possibly due to its affordability, with a 10th percentile home price of just $265,000.Interestingly, while sales volume in many areas declined, the 90th percentile price per square foot actually increased in select areas, including Liberty Hill (+14.6%) and Wimberley (+30.3%). This data underscores the fact that while affordability concerns impact lower-tier buyers, demand remains strong for high-end properties.Active vs. Sold Inventory: Supply and Demand InsightsLooking at inventory and active versus sold price data, we can see how supply levels are affecting pricing dynamics across the region.&nbsp;Austin currently has 4.8 months of inventory, meaning the market is approaching a balance but is still slightly favoring sellers.&nbsp;Bastrop has 5.9 months of inventory, indicating a transition toward a buyer’s market.&nbsp;Burnet, with 8.8 months of inventory, has shifted fully into a buyer’s market, as properties are taking longer to sell.&nbsp;Jarrell, despite lower home prices, has only 4.0 months of inventory, suggesting steady demand at its price point.At the same time, active listings are showing notable price gaps compared to recently sold homes. For example, in Driftwood, active home prices are 182.8% higher than recent sales, while in Spicewood, active listings are priced 149.2% higher than what has actually sold. This suggests that in some high-end areas, sellers may be overpricing their properties relative to current demand, which could lead to price corrections in these markets if properties remain on the market too long.Luxury Market Resilience and the Future of Austin Real EstateDespite market corrections in mid-tier and lower-priced homes, luxury properties have remained resilient. The highest-priced homes in Lakeway ($1.9M), Spicewood ($2.49M), and Wimberley ($2.16M) continue to see steady demand, demonstrating that affluent buyers are still willing to invest in premium properties.&nbsp;Looking forward, the Austin housing market is expected to stabilize further in 2025, with moderate price growth of 3-4% projected for the next year. The region’s strong job market, economic diversity, and ongoing population growth will continue to drive housing demand, even as affordability remains a concern for lower-tier buyers.Final Thoughts :&nbsp;The Austin housing market has undergone a notable shift, with lower and mid-tier price segments facing downward adjustments while the luxury sector has remained stable or seen appreciation. Buyers searching for affordable entry points may find better opportunities in areas like Jarrell, Elgin, and Kyle, while sellers in the luxury market continue to benefit from strong demand. As the market stabilizes, those looking to invest in real estate—whether buying, selling, or holding—should closely track how pricing trends evolve in the coming months.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250219115226.png" alt="" width="" height="" style=""></figure></div>

Explore the latest data on the Austin housing market correction, including shifts in lower and mid-tier prices, luxury market stability, and year-over-year trends. See how different price segments are performing and where the market is headed in 2025

Austin Real Estate Market Correction: How Prices Are Shifting in 2025

Austin Area Activity Index: A Decade of Market Shifts and City Trends The Austin Area real estate market has undergone significant changes over the past decade, reflected in the <a href="https://teamprice.com/activity-index-city">Austin Area Activity Index</a>. This index, calculated by dividing the number of pending properties by the total of active and pending properties, provides a clear view of market activity—essentially measuring what percentage of the total market is under contract at any given time. The data from 2015 to 2025 reveals both dramatic peaks and noticeable declines, offering a window into the evolving dynamics of the Austin-area housing market. From 2015 to 2019, the market experienced steady growth. The average Activity Index rose from 27.5% in 2015 to 35.4% in 2019, reflecting a healthy, balanced market. This period was marked by consistent seasonal fluctuations but overall positive momentum. However, the landscape shifted dramatically with the 2021 to 2022 housing boom. The index surged to 46.4% in 2020 and peaked at an unprecedented 58.5% in 2021. March 2021 recorded the highest monthly index at 71.3%, a clear indicator of the frenzied buyer demand driven by low interest rates and limited housing supply. Yet, this surge proved unsustainable. From 2022 onwards, the Activity Index saw a sharp decline, averaging 37.3% in 2022 and plummeting to 25.6% in 2023. By 2024, the index hit a low of 22.9%, reflecting a cooling market. A slight rebound to 24.5% in 2025 suggests stabilization, though the market remains far from its 2021 highs. Year-over-year data highlights this trend vividly. For instance, April 2024's Activity Index dropped 62.2% compared to its peak in April 2021. Despite these fluctuations, month-over-month data shows subtle signs of recovery. From January 2025 to February 2025, the index rose from 22.06% to 26.98%, indicating a modest uptick in market activity. However, when viewed against the backdrop of previous years, this increase still falls short of signaling a full market rebound. Examining specific cities within the Austin Area provides deeper insights into localized market conditions. Austin, the region’s hub, saw its Activity Index decline from 30.8% in February 2024 to a low of 18.3% in July 2024, before climbing back to 25.0% by February 2025. This trend suggests a cooling market with gradual stabilization. Round Rock followed a similar pattern, starting at 38.8% in February 2024, dipping to 23.5% in August 2024, and recovering slightly to 28.8% by February 2025. Georgetown’s Activity Index demonstrated relative stability, beginning at 31.5% in February 2024 and ending at 24.7% in February 2025. While this represents a decline, the drop was less severe compared to other cities, indicating a more resilient market. Kyle’s index fluctuated between 34.9% in February 2024 and 26.1% in July 2024, with a slight recovery to 29.1% by February 2025, reflecting moderate market activity. Buda showcased stronger resilience with an Activity Index of 46.6% in February 2024, dipping to 29.5% in August 2024, but rebounding to 31.5% by February 2025. This suggests a relatively stable market compared to other cities. Cedar Park experienced more volatility, starting at 41.3% in February 2024, dropping to 20.3% in August 2024, and stabilizing at 29.8% by February 2025, highlighting fluctuating demand. Pflugerville’s Activity Index began at 41.6% in February 2024, decreased to 28.7% in August 2024, and rose slightly to 31.3% by February 2025. Leander followed a similar trajectory, with its index moving from 38.7% in February 2024 to 24.8% in September 2024, before settling at 26.8% in February 2025. These patterns indicate a general cooling trend with minor signs of stabilization. Overall, the data points to a market that has shifted from the intense activity of the 2021 to 2022 boom to a more balanced, albeit slower, state. The month-over-month increases suggest cautious optimism, but the year-over-year declines highlight the challenges that remain. As the market continues to adjust, both buyers and sellers will need to navigate these changing conditions with informed strategies. For those seeking the most current data and insights, Team Price Real Estate offers daily updates on the Austin Area Activity Index and other market statistics. Visit the <a href="https://teamprice.com/insight-and-statistics">Insights and Statistics</a> section at teamprice.com to stay informed on the latest trends and make data-driven decisions in the ever-evolving Austin real estate market.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250212115146.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250212115156.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250212115206.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250212115215.jpg" alt="" width="" height="" style=""></figure></div> Data published on Wednesday, February 12 2025. For the most up to date information, please visit :&nbsp;<ul><li style="font-size: 18px;">​<a href="https://teamprice.com/insight-and-statistics">Insights into Austin's Real Estate Market</a>​</li><li style="font-size: 18px;">​<a href="https://teamprice.com/residential-inventory">Residential Inventory</a>​ </li><li>​<a href="https://teamprice.com/activity-index-city">Austin-Area Activity Index</a>​ </li></ul>

Discover how Austin's housing market has evolved over the past decade with a detailed analysis of the Austin Area Activity Index from 2015 to 2025. Learn about real estate trends, city-specific market activity, and what these shifts mean for buyers and sellers

Austin Area Activity Index 2015–2025: Real Estate Trends and City Insights

Austin Zip Code Breakdown: Where Home Prices Are Rising (and Falling) in 2025 :&nbsp;The Austin real estate market in early 2025 is showing home prices fluctuating dramatically across various zip codes. While some neighborhoods are experiencing significant growth, others are seeing notable declines, reflecting broader market trends and local dynamics. It is important to note that this data represents only the early part of the year, and as the traditional selling season from March to May progresses, these numbers may shift considerably. Additionally, this analysis focuses on median sold prices rather than average sold prices, as median values provide a more accurate reflection of the market by minimizing the impact of outliers. In central Austin, zip code 78733 in Travis County stands out as the leader in <a href="https://teamprice.com/appreciation-year-over-year-zip-code">price appreciation</a>. Median home prices surged from $1,200,000 in 2024 to $1,935,000 in early 2025, marking a 61.2% increase. This area, known for its luxury properties and proximity to Lake Austin, continues to attract high-end buyers, driving up prices. Similarly, 78732, covering parts of Steiner Ranch, saw a 57% rise, with median prices jumping from $1,050,000 to $1,650,000. The natural beauty and upscale amenities in these areas contribute to their growing appeal. In contrast, some high-end neighborhoods experienced price corrections. The 78736 zip code, also in Travis County, saw a sharp 37.6% drop in median home prices, falling from $750,000 in 2024 to $468,000 in early 2025. This significant decrease suggests a market adjustment after years of rapid appreciation. Likewise, 78734, encompassing areas around Lake Travis, experienced a 28.6% decline, with median prices dropping from $785,000 to $560,000. These declines may reflect a combination of overvaluation in previous years and shifting buyer preferences. East Austin continues to show strong growth, particularly in zip codes like 78702 and 78723. The 78702 area saw a 13.2% increase in median home prices, rising from $645,000 in 2024 to $730,000 in early 2025. This neighborhood’s ongoing urban revitalization and appeal to young professionals are key factors driving this growth. Similarly, 78723 experienced a 14.9% increase in median prices, from $600,534 to $689,716. The proximity to downtown and new developments make East Austin a hot spot for both investors and homebuyers. Suburban areas around Austin are also seeing varied trends. Florence in Williamson County, represented by zip code 76527, experienced a 47.7% rise in median home prices, jumping from $540,137 to $798,000. This rural area is attracting buyers looking for <a href="https://teamprice.com/affordability">affordability</a> and more space outside the bustling city. Smithville in Bastrop County, with zip code 78957, also saw a significant 34.2% increase, with median prices rising from $391,836 to $526,000. These trends highlight the growing appeal of suburban and rural living as people seek more affordable housing options. Conversely, some suburban areas are facing price declines. In Leander, represented by zip code 78641, median home prices fell by 11.3%, from $579,894 in 2024 to $514,218 in early 2025. Hutto, with zip code 78634, saw a 9.8% decrease, dropping from $398,202 to $359,238. These declines may be attributed to increased inventory or market corrections after the rapid growth seen in previous years. Overall, the Austin real estate market in early 2025 is marked by both growth and correction. High-demand areas like East Austin and certain luxury neighborhoods continue to thrive, while others are adjusting to changing market conditions. Suburban and rural areas offer opportunities for buyers seeking affordability, but not all regions are experiencing uniform growth. As more properties sell throughout the year, especially during the peak selling season, these numbers are expected to evolve, influencing both median and average price metrics. Sales activity so far in 2025 suggests a slight decrease compared to the same period in 2024. From January to February 2025, a total of 4,165 properties were sold, compared to 4,197 during the same period in 2024, indicating a 0.8% decline. This trend may suggest a cooling market, but it is too early to make definitive projections. As we move into the prime selling months, the pace of sales will provide clearer insights into whether 2025 will match or diverge from last year's sales figures. FAQ: Which Austin zip codes saw the highest median home price increases in early 2025?The highest increases were in 78733 (Travis County) with a 61.2% rise and 78732 (Steiner Ranch) with a 57% increase. These areas are popular for their luxury homes and scenic locations near lakes. Why are some Austin zip codes experiencing median price declines in early 2025?Areas like 78736 and 78734 are seeing price corrections due to overvaluation in previous years and shifting buyer preferences. Market adjustments are common after periods of rapid appreciation. Are suburban areas around Austin seeing growth or decline in early 2025?It varies. Suburban areas like Florence (76527) and Smithville (78957) are experiencing strong growth, while others like Leander (78641) and Hutto (78634) are seeing median price declines due to increased inventory or market corrections. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250211035010.jpg" alt="" width="" height="" style=""></figure></div>

Discover where Austin median home prices are rising and falling in early 2025. This detailed zip code breakdown highlights trends in the city's hottest and coolest real estate markets

Austin Home Prices 2025: Zip Codes with Rising and Falling Median Values

Is Austin a Buyer's or Seller's Market? A Hyperlocal Analysis The Austin real estate market is often viewed through a broad lens, but the truth lies in the details. While the city of Austin overall is in a <a href="https://teamprice.com/type-of-market-city">seller's market with 4.67 months of inventory</a>, this number only tells part of the story. Real estate is hyperlocal, meaning conditions can vary dramatically from one neighborhood or zip code to another. Analyzing specific areas within Austin reveals the nuances that the citywide average can’t capture.For instance, <a href="https://teamprice.com/active-residential-listings-78701">Downtown Austin, represented by zip code 78701</a>, tells a very different story compared to suburban areas like <a href="https://teamprice.com/subdivisions/shady-hollow">Shady Hollow</a> in <a href="https://teamprice.com/active-residential-listings-78739">zip code 78739</a>. Downtown Austin is deep in a buyer's market, with 11 <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">months of inventory</a> available. This surplus is largely due to the high number of condos on the market, which creates ample opportunities for buyers to negotiate favorable deals. The average list price in this area is $1,302,688, with a median price of $777,000. Properties in this zip code spend a median of 69 days on the market, reflecting the slower pace typical of a buyer’s market.​Contrast this with 78739, home to neighborhoods like <a href="https://teamprice.com/subdivisions/shady-hollow">Shady Hollow</a>, which is experiencing a hot seller's market. Here, the months of inventory are incredibly low at just 0.65 months, indicating a scarcity of available homes. The average list price in 78739 is $1,005,809, with a median price of $784,900. Homes are moving quickly, with a median of just 39 days on the market. The Activity Index in this area is robust, reflecting strong buyer demand and limited supply, which puts sellers firmly in the driver's seat.Looking beyond these two examples, a <a href="https://teamprice.com/type-of-market-zip-code">detailed breakdown of Austin’s zip codes</a> shows a mix of market conditions across the city. Out of the various zip codes analyzed:&nbsp;23 are currently in a seller's market7 fall into a neutral market13 are in a buyer's marketFor example, zip codes like 78717 and 78727 are strong seller markets with 2.43 and 1.89 months of inventory, respectively. On the other hand, zip codes such as 78702 and 78704 are firmly in buyer territory, with 9.08 and 7.09 months of inventory.The broader city statistics also shed light on these dynamics. As of February 11, 2025, there were 3,107 active residential listings in Austin. The average list price across the city was $1,017,320, with a median price of $600,000. The average days on market for these properties was 94, with a median of 65 days. Vacant properties made up 64.44% of the listings, while owner-occupied homes accounted for 27.49%, and tenant-occupied properties comprised 8.08%.In summary, while the overall city of Austin is technically in a seller's market, the conditions vary greatly depending on the specific area. Neighborhoods like Shady Hollow in 78739 are experiencing fierce competition among buyers, whereas Downtown Austin in 78701 offers more options and negotiating power for those looking to purchase. This highlights the importance of understanding the local dynamics of the real estate market, as the citywide average is merely an aggregation of many diverse submarkets. FAQ1. Is Austin currently a buyer's or seller's market?&nbsp;Austin, overall, is in a seller's market with 4.67 <a href="https://teamprice.com/real-estate-glossary/months-of-inventory">months of inventory</a>. However, market conditions vary by neighborhood and zip code. Some areas like Downtown Austin (78701) are in a buyer's market, while neighborhoods like Shady Hollow (78739) are hot seller's markets.2. What does months of inventory mean in real estate? Months of inventory refers to the number of months it would take to sell all the current homes on the market at the current sales pace. Less than 4.9 months indicates a seller's market, 5 to 6.9 months suggests a neutral market, and more than 7 months signifies a buyer's market.3. Why is real estate considered hyperlocal in Austin? Real estate is hyperlocal because market conditions can vary significantly within the same city. Factors such as neighborhood amenities, school districts, and housing types influence supply and demand, leading to different market dynamics even within the same city like Austin.&nbsp;

Discover whether Austin is a buyer's or seller's market in 2025. This detailed analysis breaks down the real estate trends across Austin's zip codes, highlighting how hyperlocal factors influence market conditions in neighborhoods like Downtown Austin (78701) and Shady Hollow (78739)

Is Austin a Buyer's or Seller's Market? A Zip Code Breakdown

Navigating Austin's Housing Market: Is Now a Good Time to Buy : The Austin real estate market has experienced significant changes in recent years, leading many to question whether now is an opportune time to purchase a home in the area. By examining recent data on home prices, inventory levels, and market forecasts, we can gain a clearer understanding of the current landscape. In May 2022, the <a href="https://teamprice.com/market-cycle">median sold price of homes in Austin</a> peaked at $550,000. By February 2025, this figure had declined to $437,500, marking a 20.45% decrease, or a $113,000 reduction in median home value. This downward trend indicates a cooling market, which may present opportunities for prospective buyers. Inventory levels have also shifted notably. In 2024, <a href="https://teamprice.com/active-residential-listings">active residential listings in the Austin</a> area stood at 9,792. By February 2025, this number had risen to 11,679, representing a 19.3% year-over-year increase. This growth in available homes suggests that buyers now have more options to choose from, potentially leading to more favorable purchasing conditions. Additionally, as of February 11, 2025, 47.1% of <a href="https://teamprice.com/active-residential-listings">all active listings in the Austin MLS</a> had experienced price reductions. In the city of Austin specifically, 45.0% of the 3,107 active listings had reduced their prices, while 53.2% remained unchanged, and 1.9% saw price increases. This trend of price adjustments indicates that sellers are becoming more flexible, which could benefit buyers seeking better deals. Looking ahead, experts have varying perspectives on the Austin housing market. A senior economist from Zillow described the Austin-Round Rock Metropolitan housing market as entering 2025 in a "healthier" state compared to its previously "unsustainably hot" condition. This assessment suggests a move toward a more balanced market, which could be advantageous for buyers. KXAN.COM However, it's important to consider broader economic factors. <a href="https://teamprice.com/30-year-fixed-mortgage-rate">High mortgage rates</a> and limited inventory have been challenges in the real estate market. While some forecasts predict stabilization in home prices and potential declines in mortgage rates, the outlook remains uncertain. Therefore, prospective buyers should stay informed about economic conditions and be prepared for potential fluctuations. MARKETWATCH.COM In summary, the Austin housing market has seen a decline in median home prices and an increase in available listings, with a significant portion of properties undergoing price reductions. These factors suggest that now may be a favorable time for buyers to consider entering the market. However, it's essential to remain mindful of broader economic conditions and conduct thorough research before making a decision.&nbsp; FAQ :&nbsp;Q1: How have Austin home prices changed recently?A1: Between May 2022 and February 2025, the <a href="https://teamprice.com/market-cycle">median sold price in Austin decreased</a> from $550,000 to $437,500, reflecting a 20.45% decline.Q2: Is there more housing inventory available in Austin now?A2: Yes, <a href="https://teamprice.com/active-residential-listings">active residential listings</a> increased from 9,792 in 2024 to 11,679 in February 2025, a 19.3% rise, providing buyers with more options.Q3: Are sellers in Austin reducing home prices?A3: As of February 11, 2025, 47.1% of active listings in the Austin MLS had price reductions, indicating increased flexibility among sellers. By staying informed about these trends, prospective buyers can make more educated decisions about entering the Austin housing market. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250211013311.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250211013320.jpg" alt="" width="" height="" style="" origin-size="1724,1300"></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250211013330.jpg" alt="" width="" height="" style=""></figure></div>​

Explore the current state of Austin's housing market, including recent trends in home prices, inventory levels, and expert forecasts, to determine if now is the ideal time to purchase a home in Austin

Is Now the Right Time to Buy a Home in Austin? An In-Depth Analysis

<a href="https://teamprice.com/market-cycle">Austin Real Estate Market Trends: 25 Years of Data</a> Reveal First-Ever Three-Year Price Decline The Austin real estate market has experienced many changes over the past 25 years, but recent data shows an unprecedented trend. For the first time in a quarter-century, the Austin area has seen three consecutive years of <a href="https://teamprice.com/market-cycle">declining home prices</a>. Analyzing data from 2000 to 2025 provides valuable insights into how the market has evolved and what current conditions may indicate for the future. In 2000, the total number of homes sold in the Austin area was 18,697, with an average sold price of $190,174 and a median sold price of $143,266. The market showed steady growth over the next two decades. By 2020, home sales had surged to 40,633, and the average sold price had risen to $432,870, while the median price reached $341,415. This period marked a significant increase in both the volume of transactions and home values. The years 2020 and 2021 saw a dramatic rise in home prices, driven by factors such as low interest rates, high demand, and limited inventory. In 2021, the average sold price jumped 30% to $562,712, and the median sold price rose 31.5% to $449,092. Homes were selling for 104.8% of their list prices, indicating intense competition among buyers. However, this rapid growth was not sustainable. In 2022, the market began to cool, with total homes sold dropping by 17.5% to 34,282. Despite the decline in sales volume, prices continued to climb, with the average sold price increasing by 10.3% to $620,628 and the median price rising by 11.2% to $499,591. This was the peak before the market started its current downward trend. The year 2023 marked the beginning of the price decline. The total number of homes sold fell by 9.6% to 30,980. The average sold price decreased by 8.3% to $569,337, and the median price dropped by 10.3% to $448,344. The sold-to-list price ratio also fell to 97.2%, reflecting reduced buyer competition. In 2024, the market showed signs of stabilization but continued to decline slightly. Home sales saw a modest increase of 0.9% to 31,256, but the average sold price dipped by 0.3% to $567,481. The median sold price decreased by 1.7% to $440,616, and the sold-to-list price ratio remained low at 97.3%. The projection for 2025 suggests that the downward trend will persist. The total number of homes sold is expected to drop by 8% to 28,757. The average sold price is projected to decline by 1.3% to $559,910, and the median price is forecasted to fall by 3.7% to $424,225. The sold-to-list price ratio is anticipated to decrease slightly to 97.0%. This three-year price decline is unprecedented in the Austin real estate market. Even during the 2008 financial crisis, the market did not experience consecutive years of declining prices. For example, in 2008, the average sold price decreased by 1.2%, and the median price increased by 1.9%. The following year, both average and median prices saw slight declines, but the market began to recover by 2010. The current trend suggests a <a href="https://teamprice.com/market-cycle">market correction</a> rather than a crash. While prices have declined from their 2022 peak, they remain significantly higher than pre-pandemic levels. For instance, the projected median price for 2025 is $424,225, compared to $312,853 in 2019. This indicates that the market is adjusting from an overheated state during the pandemic boom. Understanding these trends is crucial for both buyers and sellers in the Austin area. Buyers may find more opportunities and less competition, while sellers need to adjust their expectations to reflect current market conditions. Monitoring interest rates, inventory levels, and economic indicators will be essential for navigating the evolving real estate landscape in Austin.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><a href="https://teamprice.com/market-cycle"><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250210122102.jpg" alt="austin area market cycle real estate" width="" height="" style=""></a></figure></div>

Discover how the Austin real estate market has shifted with the first-ever three-year price decline in 25 years. Explore comprehensive data from 2000 to 2025, highlighting key trends in home sales, prices, and market dynamics

Austin Real Estate Sees First-Ever Three-Year Price Decline: 25 Years of Market Data

Pending Listings Lagging in 2024: What the Data Tells Us About the Austin Area Real Estate Market As we step into 2025, the Austin area real estate market is showing clear signs of shifting dynamics. A detailed analysis of pending listings and the <a href="https://teamprice.com/activity-index-city">Activity Index across the top 30 cities</a> in the Austin area reveals important trends that both buyers and sellers should consider. Pending listings, a key indicator of buyer demand and market activity, have seen a noticeable decline. As of February 10, 2025, the number of pending listings stands at 3,697. This reflects a significant drop of 10.7% compared to the same period in 2024, where pending listings totaled 4,139. This decline suggests a cooling in buyer activity, which can be attributed to various factors such as economic conditions, interest rates, and seasonal trends. The <a href="https://teamprice.com/activity-index-city">Activity Index</a>, which is calculated by dividing the number of pending properties by the total number of active and pending properties, provides further insight into the market’s health. In Austin, the Activity Index leads at 37.7%, indicating strong demand relative to other cities in the region. Bastrop follows closely with an Activity Index of 35.8%, and Buda at 31.3%. These cities show a higher proportion of properties moving from active to pending status, highlighting more competitive market conditions. On the other hand, several cities are experiencing lower <a href="https://teamprice.com/activity-index-city">Activity Index percentages</a>, reflecting weaker demand. For example, Marble Falls has an Activity Index of 14.4%, Smithville at 13.8%, and Taylor at 11.9%. These figures suggest that properties in these areas are taking longer to move from active to pending status, possibly due to less buyer interest or higher inventory levels. Other notable Activity Index figures include Georgetown at 26.3%, Hutto at 25.4%, and Kyle at 24.4%. These mid-range percentages indicate balanced markets where supply and demand are relatively even. Cities like Cedar Park (28.4%) and Leander (22.2%) also fall within this balanced category, offering opportunities for both buyers and sellers to find value. The overall decline in pending listings across the Austin area has a direct impact on the Activity Index. With fewer properties going under contract, the proportion of active listings increases, leading to lower Activity Index percentages in many cities. This trend underscores the importance of closely monitoring local market conditions, as shifts in buyer demand can influence pricing strategies and negotiation dynamics. In conclusion, the Austin area real estate market in early 2025 reflects a mix of strong demand in certain cities and cooling activity in others. The decline in pending listings by 10.7% compared to 2024, combined with varying <a href="https://teamprice.com/activity-index-city">Activity Index figures across the top 30 cities</a>, paints a detailed picture of a market in transition. Buyers and sellers alike should stay informed about these trends to make strategic decisions in the evolving real estate landscape.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><a href="https://teamprice.com/active-residential-listings"><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250210121046.png" alt="active and pending listings austin area" width="" height="" style=""></a></figure></div>​ <div class="se-component se-image-container __se__float-center"><figure><a href="https://teamprice.com/activity-index-city"><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250210121025.png" alt="activity index cities austin area" width="" height="" style="" origin-size="1714,1289"></a></figure></div>

Explore the latest 2025 trends in Austin's real estate market. Pending listings have dropped 10.7% compared to 2024, affecting the Activity Index across the top 30 cities. Find out what this means for buyers and sellers in the Austin area

Austin Real Estate Market 2025: Pending Listings Down 10.7% Across Top Cities

Austin Housing Market Forecast: Will Home Prices Drop 12.5% by 2028?&nbsp;The Austin real estate market has undergone significant shifts in recent years, with changing <a href="https://teamprice.com/affordability">affordability</a> dynamics, rent fluctuations, and broader economic factors influencing housing trends. As we look ahead, the relationship between median <a href="https://teamprice.com/renting-vs-buying">home prices and rental rates</a> provides a critical lens through which we can evaluate potential future price adjustments. Based on historical data and current market trends, we can estimate the trajectory of home prices and rent over the next three years.​Recent Price Trends in AustinThe <a href="https://teamprice.com/market-cycle">median sold price in Austin</a> has experienced notable fluctuations, peaking at $550,000 in May 2022 before declining to $409,000 as of January 2025. This represents a 25.6% decline over 32 months. The most recent year-over-year change shows a -4.1% decrease, indicating a cooling period following the rapid appreciation seen during 2020-2022. While the past year has seen median prices ranging from $425,000 to $450,000, the recent dip to $409,000 suggests a continued downward trend.Historical data shows that Austin's market cycles typically last between 36 to 48 months from peak to trough, with recovery periods often extending beyond that. If current trends hold, we expect additional declines, though at a more moderate pace compared to the sharp corrections observed in 2022 and early 2023.​The Impact of Rent Declines on Home PricesRent prices are a key component in home price valuations, particularly when evaluating the <a href="https://teamprice.com/price-to-rent-ratio">price-to-rent ratio</a>, a fundamental measure of housing affordability. As of early 2025, the median rent in Austin stands at $2,100. Given current supply levels and economic conditions, a projected 5% annual decline in rent over the next three years is a reasonable expectation. This would bring the median rent down to approximately $1,891 by 2028.Historically, the <a href="https://teamprice.com/price-to-rent-ratio">median sold price to rent ratio</a> has averaged around 13.5, yet the current ratio stands at 16.2, indicating that home prices may still be overextended relative to rental yields. If the market returns to this historical ratio, we anticipate a further decline in home values.​Projected Home Price DeclineIf rent prices decrease by 5%, the median home price would need to adjust downward to maintain a balanced affordability ratio. Given this, a 12.5% decline in home prices over the next three years appears to be a reasonable projection. This would bring the median sold price to approximately $357,875 by 2028.This estimated decline aligns with previous market cycle corrections, where downturns ranged from 10% to 16% over multi-year periods. However, several external factors could influence the rate of decline, including interest rate adjustments, employment growth, and new housing supply levels.​What This Means for Buyers and SellersFor buyers, a projected decrease in home prices suggests potential opportunities to enter the market at lower price points. As affordability improves and interest rates stabilize, demand could begin to increase, helping to form a price floor.For sellers, the ongoing decline underscores the importance of pricing homes competitively. Overpricing in a declining market can lead to extended time on the market and potential price reductions. Understanding local trends and pricing homes in line with market expectations will be crucial.​Final Analysis&nbsp;Austin’s real estate market is in a period of price rebalancing, with a projected 12.5% decline in home prices and a 5% decrease in rent over the next three years. These shifts suggest that affordability will gradually improve, creating opportunities for buyers while requiring strategic pricing approaches for sellers. Monitoring economic conditions, supply trends, and mortgage rate movements will be key factors in assessing the future trajectory of Austin’s housing market.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250205022336.png" alt="" width="" height="" style=""></figure></div>​ <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250205022418.png" alt="" width="" height="" style=""></figure></div>

Are Austin home prices expected to decline by 12.5% over the next three years? Will rent prices drop by 5? Learn what this means for buyers, sellers, and the overall affordability of Austin's housing market.

Austin Housing Market Forecast: Will Home Prices Drop 12.5% by 2028?

Austin Home Prices Fall to Early 2021 Levels: January 2025 Market Analysis The Austin real estate market continues to shift as the <a href="https://teamprice.com/residential-price">median sold price for January 2025 dropped to $399,990</a>, marking the lowest level since February 2021. This represents a 4.8% decrease from January 2024, when the median price was $420,000, and a 3.7% decline from January 2023. The ongoing downward trend highlights a significant cooling from the record highs seen in 2021 and 2022. The peak of the Austin housing market occurred in May 2022, when the median sold price reached an all-time high of $538,000. Since then, the market has experienced a substantial correction, with prices declining by $138,010, or 25.7%. This correction suggests that home values have adjusted to changing economic conditions, particularly as higher mortgage rates have reduced affordability for many buyers. Despite recent declines, home prices in Austin remain higher than they were before the pandemic-driven market surge. In January 2020, the median sold price was $299,291, meaning home values have increased by 33.6% over the past five years. However, the rapid growth seen in 2021 and 2022 has largely been erased. Compared to January 2021, when the median price was $359,487, prices are now just 11.4% higher. This data indicates that the Austin housing market has returned to a more sustainable trajectory after years of extreme volatility. Looking at longer-term trends, the median sold price in January 2015 was $236,000. Over the past decade, Austin home prices have increased by 69.5%, reinforcing the region’s long-term growth despite recent market adjustments. The <a href="https://teamprice.com/appreciation-year-over-year-city">annual appreciation rate</a> from 2015 to 2020 averaged 5.7%, but this rate accelerated dramatically during the pandemic housing boom before returning to more stable levels in 2023 and 2024. Month-over-month data further illustrates the market’s cooling trend. In February 2024, the median sold price was $430,000, slightly higher than January’s $420,000, but the following months saw gradual declines. By September 2024, prices had fallen to $418,000, and in December 2024, the median sold price was $435,000. The steady decrease suggests that Austin’s housing market has been adjusting to new economic conditions rather than experiencing a sudden crash. Affordability remains a key factor in these market adjustments. <a href="https://teamprice.com/30-year-fixed-mortgage-rate">Rising mortgage rates</a> have significantly impacted buyer purchasing power, leading to a slowdown in demand. In contrast to the intense competition and multiple-offer scenarios seen in 2021 and early 2022, buyers in today’s market have more negotiating power. Inventory levels have also increased, allowing for greater selection and reducing the urgency to buy immediately. These factors combined have contributed to the decline in median sold prices. Although <a href="https://teamprice.com/austin-area-top-30-cities-value-monitor">prices have fallen from their peak</a>, Austin’s real estate market remains strong in the long term. The city continues to attract new residents, and demand for housing persists, particularly as the broader economy stabilizes. If mortgage rates begin to decrease later in 2025, buyer confidence may improve, leading to renewed demand and potential price stabilization. For now, the data shows that Austin home prices have returned to early 2021 levels, offering a more balanced market for buyers and sellers alike. As the year progresses, the market’s direction will depend on interest rates, inventory levels, and economic conditions. While uncertainty remains, the current trend indicates that Austin’s housing market is finding a new equilibrium after years of rapid change.&nbsp;<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204104816.jpg" alt="" width="" height="" style=""></figure></div>​ <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204104825.jpg" alt="" width="" height="" style=""></figure></div>​

The Austin housing market saw its median sold price drop to $399,990 in January 2025, the lowest level since early 2021. With a 25.7% decline from peak prices in May 2022, affordability shifts and rising mortgage rates continue to reshape buyer demand

Austin Housing Market Update: January 2025 Prices Drop to 2021 Levels

Understanding the New Listing to Pending Ratio in the Real Estate Market​ The <a href="https://teamprice.com/new-listing-to-pending-ratio">new listing to pending ratio</a> is a key indicator of real estate market activity, reflecting how quickly homes are being absorbed by buyers. This metric is calculated by dividing the number of new listings by the number of properties that go pending in a given timeframe. When the ratio is below 1.0, it signals a strong market where demand is keeping up with supply. Conversely, a ratio above 1.0 suggests that new listings are accumulating faster than they are being sold, which may indicate a slowdown in buyer activity. Over the past several months, the ratio has shown significant variation, influenced by seasonal trends, mortgage rates, and shifts in supply and demand. In June 2024, the ratio stood at 0.71, reflecting a competitive summer market where homes were being absorbed at a steady pace. However, as the market moved into the fall, the ratio fluctuated, reaching 0.80 in September and 0.79 in October. These numbers suggest that while buyer activity remained strong, homes were taking slightly longer to go under contract. By November 2024, the ratio climbed to 0.94, indicating a slowdown in pending sales relative to new listings. This trend continued into December, where the ratio exceeded 1.0, reaching 1.02. A ratio above 1.0 means that new listings outpaced the number of pending contracts, signaling a shift toward a more balanced or even buyer-favored market. Historically, this seasonal trend is expected, as the winter months typically see reduced buyer activity. The higher ratio suggests that sellers needed to be more strategic with pricing and marketing efforts to attract buyers. In January 2025, the market saw a significant shift. The new listing to pending ratio dropped to 0.63, a notable decrease from the previous month. This decline indicates a renewed surge in buyer demand, possibly influenced by the start of the year when market activity generally picks up. Mortgage rates, which had hovered around 6.96% in December, remained a crucial factor in buyer affordability and decision-making. The sharp drop in the ratio suggests that buyers were eager to re-enter the market despite the ongoing rate environment. Analyzing these trends over the past year provides deeper insight into how market conditions have evolved. In the spring and summer of 2024, the market was balanced, with ratios ranging from 0.67 in May to 0.77 in July. These figures align with typical seasonality, where warmer months see increased transactions. As the year progressed, affordability challenges, rising inventory, and shifting buyer sentiment led to fluctuating ratios. The peak in December followed by a decline in January illustrates the impact of seasonality on real estate activity. One of the most critical factors influencing the <a href="https://teamprice.com/new-listing-to-pending-ratio">new listing to pending ratio</a> is <a href="https://teamprice.com/30-year-fixed-mortgage-rate">mortgage rates</a>. Over the analyzed period, rates steadily increased from 6.09% in September to 6.96% by January 2025. Higher mortgage rates generally slow buyer activity, as affordability declines. However, the January data suggests that demand persisted despite elevated rates, potentially due to pent-up buyer interest or a seasonal rebound. Inventory levels also play a vital role in shaping the market. The number of active listings remained above 10,000 throughout the latter half of 2024, peaking at 13,833 in June. The consistent supply meant that buyers had more options, contributing to a slight softening in demand by the year’s end. As the market moved into 2025, the renewed drop in the ratio suggests that inventory was being absorbed more rapidly. The implications of the new listing to pending ratio are essential for both buyers and sellers. For buyers, a lower ratio means increased competition, potentially leading to quicker sales and fewer opportunities for price negotiations. On the other hand, a higher ratio gives buyers more leverage, as homes take longer to sell and sellers may be more willing to negotiate. For sellers, a low ratio presents an opportunity to list properties in a strong demand environment, while a high ratio requires strategic pricing and marketing to attract buyers. Understanding this ratio provides valuable insight into market conditions, helping industry professionals and consumers make informed decisions. As 2025 progresses, monitoring shifts in the new listing to pending ratio will remain essential for assessing market health and predicting future trends. Frequently Asked Questions (FAQ) Is the Austin housing market crashing? The Austin housing market is not crashing but adjusting to changing conditions. The new listing to pending ratio has fluctuated over recent months, indicating shifts in supply and demand. While some months show slower <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption</a>, others reflect strong buyer activity, suggesting a correction rather than a collapse. Is the Austin market correcting? Yes, the data suggests that the Austin market is in a correction phase. The ratio surpassed 1.0 in December 2024, indicating an increase in supply relative to demand. However, January 2025 showed a renewed surge in buyer activity, dropping the ratio to 0.63. This suggests that while the market experienced a slowdown, it is stabilizing rather than undergoing a significant downturn. When will home prices reach their lowest point? It is difficult to predict the exact timing of price bottoms, but trends in the new listing to pending ratio can provide insight. Typically, prices are most favorable to buyers when <a href="https://teamprice.com/residential-inventory">inventory</a>is high, and the ratio is above 1.0. The increase in inventory in late 2024, combined with a higher ratio, suggests a buyer’s advantage. However, the sharp decline in the ratio in early 2025 indicates renewed demand, which could limit further price declines.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204102912.png" alt="" width="" height="" style=""></figure></div> <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204102937.png" alt="" width="" height="" style=""></figure></div>

The new listing to pending ratio is a crucial real estate metric that reveals market demand and absorption rates. This detailed analysis explores recent trends, mortgage rate impacts, and what this ratio means for buyers and sellers in today’s market

Understanding the New Listing to Pending Ratio: What It Means for Real Estate Trends

Record-Breaking Drop: January 2025 Median Home Prices Plummet 8.6% :&nbsp;The housing market experienced an unprecedented decline in January 2025, with the <a href="https://teamprice.com/market-cycle">median sold price dropping</a> by 8.6% compared to December 2024. This represents the steepest month-over-month decline ever recorded for the month of January. The median sold price fell from $448,525 in December 2024 to $409,765 in January 2025, a decrease of $38,760. This shift in pricing signals a notable adjustment in market conditions, with various economic and seasonal factors playing a role in this substantial drop. In addition to the sharp month-over-month decline, the <a href="https://teamprice.com/market-cycle">year-over-year comparison</a> also reveals a significant downturn. In January 2024, the median sold price stood at $428,386, meaning that the January 2025 figure is down 4.3% from the previous year. This downward trend reflects a market that continues to adjust from the high pricing seen in recent years, influenced by affordability constraints and broader economic factors. Sales volume also experienced a notable decline. In January 2025, only 1,708 <a href="https://teamprice.com/sales-density-population-and-realtors">homes were sold</a>, a 30.8% decrease from December 2024, when 2,468 homes changed hands. Compared to January 2024, which saw 1,794 <a href="https://teamprice.com/sales-density-population-and-realtors">homes sold</a>, the market recorded a 4.8% decline in total transactions. These figures indicate a slowdown in buyer activity, suggesting that affordability concerns, mortgage rates, and overall consumer sentiment are impacting purchasing decisions. Despite the significant price drop, sellers continue to receive offers close to their asking prices. The <a href="https://teamprice.com/sold-price-to-list-price-ratio">sold-to-list price ratio</a> in January 2025 stood at 96.99%, slightly higher than the 96.78% recorded in December 2024. This suggests that while prices are declining, properties are still selling close to their listed values, indicating that sellers are adjusting their expectations rather than experiencing steep underbidding from buyers. However, with a decline of 8.6% in median prices, it is evident that homes are being listed at lower initial prices compared to previous months. Examining historical trends, the 8.6% decline in January 2025 far surpasses the typical January downturn. Over the past two decades, the average month-over-month change in January’s median sold price has been around -3.5%. The last time a similarly large decline was recorded was in 2010 during the post-Great Recession housing market correction, which saw a 5.9% drop. The current drop is not only historically significant but also raises questions about whether this trend will continue or stabilize in the coming months. Several factors contribute to this dramatic shift. Seasonality plays a crucial role, as January is traditionally a slow month for real estate. However, the magnitude of the price drop suggests influences beyond seasonal patterns. <a href="https://teamprice.com/affordability">Affordability</a>&nbsp;remains a major concern, with <a href="https://teamprice.com/30-year-fixed-mortgage-rate">mortgage rates</a> still hovering at elevated levels. <a href="https://teamprice.com/30-year-fixed-mortgage-rate">Higher interest rates</a> have led to increased borrowing costs, discouraging potential buyers from entering the market. Many buyers are likely waiting for potential rate reductions before committing to a home purchase. Meanwhile, sellers who listed their homes in the winter months may have had to lower their prices to attract buyers in a slower market, leading to a broader decline in median prices. Another contributing factor is the impact of new construction. Builders, facing increasing inventory, have been offering incentives such as interest rate buydowns, closing cost assistance, and price reductions. This makes newly built homes more attractive compared to resale properties, forcing sellers of existing homes to adjust their pricing strategies to compete. As a result, the resale market is seeing downward pressure on prices, particularly in areas where new construction inventory is high. Economic uncertainty is also playing a role in buyer hesitation. Concerns over layoffs, inflation, and potential economic downturns have made some buyers cautious about making large financial commitments. When consumer confidence is shaky, home purchases tend to slow, leading to increased inventory and downward pricing pressure. Looking ahead, market conditions in February and March will be crucial in determining whether this price drop is a temporary correction or a signal of a longer-term trend. Historically, home prices begin to stabilize as the spring season approaches, with buyer activity increasing. However, if <a href="https://teamprice.com/affordability">affordability challenges</a> persist and mortgage rates remain high, prices may continue to face downward pressure. The direction of interest rates in the coming months will be a key factor in shaping the housing market’s trajectory. The January 2025 housing market data provides a clear signal that prices are adjusting after years of appreciation. While lower prices create opportunities for buyers who were previously priced out of the market, affordability remains a hurdle due to higher financing costs. Sellers will need to price their homes competitively to attract offers, and real estate professionals will need to navigate these changing dynamics carefully. Whether this record-breaking drop is a temporary correction or the beginning of a prolonged adjustment remains to be seen, but all indicators suggest that the market is undergoing a significant shift.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204011511.jpg" alt="" width="" height="" style=""></figure></div><div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250204011545.png" alt="" width="" height="" style=""></figure></div>

January 2025 recorded the largest-ever month-over-month decline in median home prices, dropping 8.6% from December 2024. This in-depth analysis explores key data points, sales volume trends, and factors driving this historic price drop

January 2025 Home Prices Drop 8.6% – Largest January Decline on Record

Exploring Austin's Real Estate: 11,622 Active Listings in Early 2025 :&nbsp;The Austin-Area real estate market in 2025 shows a dynamic landscape for both buyers and sellers. With a total of 11,622 <a href="https://teamprice.com/active-residential-listings">active residential listings</a> as of February 3, we're seeing a significant increase from the previous year's 9,788 listings, up by 18.7%. This surge in listings might suggest that more sellers are entering the market, potentially giving buyers more options to choose from. In terms of market activity, the current activity index sits at 23.3%, with a months of inventory at 4.07. This means there's around 4 months' worth of homes on the market if sales continue at their current pace. For sellers, this could mean setting competitive prices to move their properties quickly. Price adjustments are a common strategy in this market. Almost half (47.7%) of all listings have had their prices lowered to attract attention. Conversely, only 3.9% have seen price increases, showing that sellers are generally adjusting downwards to meet buyer expectations. In Leander, where the local market is particularly active, 46.0% of listings have experienced price drops, while 52.4% have held steady, indicating a balanced yet competitive market. When looking at new versus resale properties, new constructions make up 33.7% of the listings. These homes tend to have more price adjustments, with 46.1% seeing price decreases, possibly due to builders trying to clear inventory. Resale properties, on the other hand, maintain a bit more price stability, with fewer drastic changes. The length of time a home stays on the market before selling can tell us a lot about demand. Currently, the median days on the market for the entire MLS is 76 days. However, a significant 38.6% of homes sell within 50 days or less, suggesting that well-priced homes are still moving relatively quickly in this market. Finally, the occupancy status of listings shows that 65.3% are vacant. This could mean that sellers are moving out in anticipation of a sale, or these properties might be used as investments. Navigating this market requires understanding these trends, from price adjustments to the speed of sales. Whether you're looking to buy or sell, the data paints a picture of a market that's active but where strategic pricing and timing play key roles.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250203111215.jpg" alt="" width="" height="" style=""></figure></div>​

Austin Active Listings Analysis : 11,622 active listings, price adjustments, and market activity. Learn how these trends could affect your buying or selling decisions in this comprehensive guide

Exploring Austin's Real Estate: 11,622 Active Listings in Early 2025

Are Prices in Austin Dropping? Latest Data Shows 4-Year Low :&nbsp;Are you curious about whether home prices in Austin are dropping? Our <a href="https://teamprice.com/market-cycle">latest data analysis</a> reveals a significant trend with Austin prices dropping to a 4-year low. Looking back from February 2021, the median sold price for homes in the Austin-area, which spans Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties, has shown some notable changes. In February 2021, the median price was around $491,000, which was the lowest recorded since then. To put this into perspective, let's look at historical data. In January 2000, the median price was $133,500, and by January 2001, it had risen to $142,500. This gradual increase continued over the years, reaching a peak around 2006 with a median price of $165,000 in January. However, after the global financial crisis, there was a period of stabilization, with the median price in January 2009 at $174,500. Post-recession, the market saw a recovery, with the median price climbing to $213,200 by January 2014. Fast forward to recent years, the data points to a dip in median prices, reaching the lowest point since February 2021, where it was $491,000. This drop could signal a cooling market or an adjustment after a period of rapid growth. This information is crucial for anyone looking to buy or sell in the Austin area, offering insights into the current state of the market and helping to gauge whether Austin prices are dropping or stabilizing at a new level.&nbsp; <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250203103326.jpg" alt="" width="" height="" style=""></figure></div>

Austin's real estate market is cooling with prices dropping to a 4-year low. We analyze the latest data from February 2021 to present, offering insights into whether Austin prices are truly dropping and what this means for potential buyers and sellers in Travis, Williamson, Bastrop, Hays, Caldwell, and Burnet counties.

Are Prices in Austin Dropping? Latest Data Shows 4-Year Low

Understanding Austin's Property Value Drops: 2025 Data Analysis : The Austin real estate market has seen some significant shifts since its <a href="https://teamprice.com/residential-price">peak values</a>, and understanding these changes can help both buyers and sellers navigate the current landscape. According to recent data from Team Price Real Estate, a brokerage in the Austin area, the Austin-Area Multiple Listing Service (MLS) and the City of Austin have both experienced notable declines in property values from their highest points. Starting with the Austin-Area MLS, the average list <a href="https://teamprice.com/residential-price">price reached its peak</a> in March 2023 at $708,929 but has now settled to $677,781, marking a drop of $31,148, or a decrease of 4.4%. The median list price, which often gives a clearer picture of the middle market, peaked in May 2022 at $539,900. It has since fallen to $473,735, a significant decrease of $66,165, or 12.3%. For those looking at sold properties, the average sold price in the Austin-Area MLS was at its highest in May 2022 at $664,515, dropping to $527,131 currently, showing a decrease of 20.7%. Similarly, the median sold price, which was $538,000 at its peak, has now decreased by 25.7% to $400,000. When we look at the <a href="https://teamprice.com/price-per-square-foot">price per square foot</a>, another crucial metric for understanding value, the average sold price per square foot in the Austin-Area MLS peaked in April 2022 at $324, now standing at $244, a 24.7% decrease. The median price per square foot followed a similar trend, dropping from $280 to $210, which equates to a 25% reduction from its peak. In the City of Austin specifically, the trends are somewhat different. The average list price reached its peak slightly later, in April 2024, at $945,176, and has since decreased to $924,232, a smaller drop of 2.2%. The median list price in the city, peaking in May 2022 at $658,589, has now reduced to $624,387, a 5.2% decline. The average sold price for homes in Austin was $847,583 at its peak in May 2022, now at $747,023, showing an 11.9% drop. The median sold price dropped from $680,000 to $560,000, which is a 17.6% decrease. The price per square foot in the City of Austin also shows a significant adjustment. The average sold price per square foot went from $442 in May 2022 to $344, a decrease of 22.2%. The median price per square foot experienced a larger decline, dropping from $393 to $210, a substantial 27% decrease. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250203101342.jpg" alt="" width="" height="" style=""></figure></div> These figures from Team Price Real Estate's latest report on February 3, 2025, offer a snapshot of how the real estate market in Austin has evolved, providing vital insights for anyone involved in buying or selling property in the Austin-Area.&nbsp;

Latest trends in Austin's real estate market with detailed 2025 data from Team Price Real Estate. Discover how average and median prices for listings and sales have shifted since their peaks, providing crucial insights for buyers, sellers, and investors in the Austin-Area MLS and City of Austin

2025 Austin Housing Market Update: Prices Since Peak

<a href="https://teamprice.com/price-per-square-foot">Austin Real Estate: Price Per Square Foot</a> Analysis for 2025 :&nbsp;The real estate market in Austin is always evolving, and <a href="https://teamprice.com/price-per-square-foot">price per square foot</a> remains a critical metric for buyers, sellers, and investors looking to understand current trends. As of January 29, 2025, there are 2,971 active residential listings in the city. This data provides insight into pricing patterns, property size preferences, and affordability in the Austin housing market. One of the most notable takeaways from the current market data is the concentration of listings in the mid-size home category. Properties between 1,000 and 1,750 square feet make up a significant portion of the available inventory. The 1,000 to 1,250 square foot range accounts for 330 active listings, while the 1,250 to 1,500 square foot category has 332 listings. Homes ranging from 1,500 to 1,750 square feet represent another 303 listings. Combined, these three segments account for nearly one-third of the total active residential properties in Austin. In terms of price distribution, the majority of listings fall between $500,000 and $1,000,000. Homes in the $500,000 to $750,000 range make up 6% of the market, while pricing trends indicate that properties in this range tend to be among the most actively listed. However, listings become increasingly scarce at both ends of the price spectrum. There is only one listing available under $250,000, reinforcing the challenges buyers face when looking for affordable housing options in Austin. On the higher end, properties priced above $1,000,000 make up about 3% of the market, catering to a more exclusive segment of homebuyers. Larger homes—those above 3,000 square feet—represent a smaller portion of the total inventory. Listings in the 3,000 to 3,250 square foot category account for only 98 homes, or about 3.3% of the market. The number of available homes continues to decrease as square footage increases, with only 50 homes listed between 3,750 and 4,000 square feet. Properties exceeding 5,000 square feet are rare, making up just 0.6% of the total inventory. For sellers, the data highlights the importance of strategic pricing, particularly for those listing homes in the competitive $500,000 to $1,000,000 range. With a large volume of properties available in this bracket, differentiating through home improvements, location advantages, or competitive pricing could be crucial for a faster sale. Meanwhile, sellers with larger homes may experience longer listing periods due to limited buyer demand for high-square-footage properties. For buyers, the mid-size home category provides the most options, especially in the $500,000 to $750,000 range. However, those looking for homes under $250,000 will likely face limited opportunities. The data also suggests that larger homes remain a niche market, with fewer available options for those seeking high-end properties with expansive square footage. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250130014207.jpg" alt="" width="" height="" style=""></figure></div>​ As Austin’s real estate market continues to shift, monitoring <a href="https://teamprice.com/price-per-square-foot">price per square foot</a> trends and inventory levels will remain essential for making informed real estate decisions. Whether buying or selling, understanding these patterns can provide a strategic advantage in navigating Austin’s competitive housing market in 2025​

Latest price per square foot trends in Austin’s real estate market for 2025. This detailed analysis breaks down active listings by price and square footage, helping buyers and sellers navigate the housing market with data-driven insights

Austin Real Estate Prices in 2025: Price Per Square Foot Analysis & Market Trends

As of January 28, 2025, the Austin real estate market offers valuable insights into current trends and shifts in residential listings. With 11,453 <a href="https://teamprice.com/active-residential-listings">active residential properties</a> available, the market has seen an 18% year-over-year increase compared to 2024. This significant growth reflects changes in both new construction and resale inventory, with new construction comprising 33.5% of active listings and resale properties accounting for 66.5%. These figures suggest a dynamic market environment with opportunities for buyers and sellers alike. Pending listings, which represent properties under contract, total 3,583. This marks an 8% decrease from the prior year, signaling a potential slowdown in demand. Notable areas with high pending activity include Georgetown, Austin, and Kyle, emphasizing regional demand patterns. The Activity Index, which measures market activity by dividing pending listings by total active and pending listings, currently stands at 23.8%. This figure is slightly lower than the 28.6% recorded in 2024, indicating a moderate decline in market engagement. Months of Inventory (MOI) has increased to 4.0, up from 3.39 in 2024. This metric reflects the number of months it would take to sell the current inventory at the prevailing sales pace, providing a clear indication of market balance. An MOI of 4.0 suggests a market that is leaning toward balance, offering neither strong buyer nor seller advantages. Pricing trends in the Austin area reveal compelling shifts. New construction properties have a median price of $704,640, reflecting a 6.9% price decrease compared to prior periods. Resale properties average $740,182, with a 6.8% decline. Updated or remodeled homes command higher prices, with an average of $900,629, though they have also experienced a price reduction of 7.4%. The price dynamics demonstrate the variability across property types, with new construction and under-construction homes showing notable price competitiveness. Days on Market (DOM) is another critical factor to examine. The median DOM for active listings is 81 days, with 41.9% of properties on the market for more than 100 days. This trend suggests that buyers have ample time to explore their options, particularly in areas like Driftwood and Marble Falls, where properties tend to stay on the market the longest. In contrast, locations such as Manor and Del Valle exhibit shorter market times, reflecting higher demand or more competitively priced offerings. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250128035834.png" alt="" width="" height="" style=""></figure></div>​ The occupancy status of <a href="https://teamprice.com/active-residential-listings">active listings</a> highlights additional market dynamics. Approximately 65.5% of properties are vacant, while 30.1% are owner-occupied and 4.3% tenant-occupied. The high percentage of vacant properties may be indicative of the prevalence of new construction and homes specifically prepared for sale. Georgetown and Jarrell report some of the highest vacancy rates, showcasing opportunities for buyers to explore unoccupied homes ready for immediate occupancy. Special listing conditions such as short sales, foreclosures, and HUD-owned properties contribute to a small but significant portion of the market. These properties account for 4.03% of active listings, offering alternative opportunities for value-focused buyers. The average price reduction for such properties ranges from 8% to 13.6%, depending on the specific listing condition. Activity across cities within the Austin area demonstrates regional variances. Austin leads with 2,990 active listings, followed by Georgetown with 920 and Kyle with 488. Price activity within these cities shows varying levels of price drops and increases. For instance, Pflugerville and Kyle exhibit higher proportions of price adjustments, reflecting their dynamic market conditions. Meanwhile, newer developments in areas like Liberty Hill and Hutto continue to attract buyer interest. When examining the broader trends, new construction remains a dominant segment, with 3,841 active listings. These properties are distributed across cities such as Austin, Georgetown, and Kyle, where development activity is robust. New construction listings also feature a higher rate of price changes, with 44.8% experiencing price reductions. This suggests that builders are adjusting pricing strategies to attract buyers in a competitive market. The data provides an in-depth look at a market in flux, with shifts in inventory, pricing, and market activity shaping the landscape. The Austin real estate market continues to adapt, offering insights for buyers, sellers, and investors seeking to make informed decisions in 2025.&nbsp;

Latest insights into Austin’s real estate market as of January 2025. Learn about active and pending listings, pricing trends, days on market, and inventory dynamics shaping buyer and seller decisions. 

Austin Real Estate Market Insights: Active Listings and Trends in 2025

The <a href="https://teamprice.com/national-market-index">National House Price Index (NHPI)</a> for November 2024 reflects a year-over-year increase of 3.8%, signaling continued strength in the U.S. housing market. When adjusted for inflation, this growth narrows to 1%, revealing a market that has remained resilient despite economic challenges. These numbers offer valuable insights into the housing market’s performance and provide a detailed view of its long-term trends and short-term recovery. The <a href="https://teamprice.com/national-market-index">inflation-adjusted Home Price Index (HPI/CPI)</a> reached 1.03023 as of November 2024, slightly above historical averages. This measure underscores the real value growth of housing prices, factoring in the effects of inflation. Notably, the index is 30.5% higher than the historical November average, which highlights the robust nature of the housing market, even amid external pressures. Year-to-date, the cumulative HPI is 27.8% above the long-term average, demonstrating consistent upward momentum throughout the year. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250128034520.png" alt="" width="" height="" style=""></figure></div>​ A closer look at historical data reveals the index's resilience compared to previous market corrections. For example, during the 2008 housing crisis, the inflation-adjusted HPI experienced a drawdown of 35.23% from its peak in March 2006, requiring 71 months to recover. By contrast, the current market correction, which began in May 2022, shows a decline of just 1.06% over 30 months, illustrating the market’s stability and faster recovery in recent years. Monthly data for 2024 highlights steady growth, with slight fluctuations. The index began the year at 1.0204 in January and increased incrementally to 1.03023 in November. This consistent rise demonstrates that housing prices remain on a positive trajectory, albeit at a more tempered pace compared to the rapid growth observed in earlier years. Several factors contribute to the current state of the housing market. Mortgage rates, though elevated compared to pandemic-era lows, remain manageable for many buyers. This, combined with persistent inventory shortages, has created an environment where demand continues to outpace supply. Wage growth and low unemployment levels further support homebuyers’ ability to enter the market, offsetting some of the affordability challenges posed by higher interest rates. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250128034816.png" alt="" width="" height="" style=""></figure></div> Regional disparities continue to play a significant role in national housing market trends. Metropolitan areas, particularly those in the Sunbelt region, have experienced heightened demand, driving national averages upward. Meanwhile, some markets with less economic growth or higher levels of inventory have seen more moderated price gains, balancing the overall index. The comparison of the current market correction to past downturns offers important context. While the 2008 financial crisis led to prolonged recovery and severe price drops, the present market benefits from stricter lending standards and a healthier economic foundation. This stability is evident in the relatively shallow drawdown from the May 2022 peak and the ongoing incremental recovery. Affordability remains a key concern for many buyers. Inflation-adjusted growth reveals that while housing prices are rising, they are doing so at a rate that aligns more closely with overall economic conditions. This balance suggests that housing remains a valuable asset class, particularly for those seeking long-term investment opportunities. Looking ahead, the housing market’s trajectory will depend on several critical factors. Interest rates, inventory levels, and regional economic growth will all play pivotal roles in shaping the market’s performance. As 2025 begins, the market appears poised for continued gradual growth, supported by steady demand and limited supply. However, buyers, sellers, and investors should remain mindful of potential risks, such as further rate increases or shifts in consumer confidence. The November 2024 <a href="https://teamprice.com/national-market-index">National House Price Index</a> serves as a testament to the resilience of the U.S. housing market. By examining inflation-adjusted metrics and historical trends, it becomes clear that the current market dynamics are far more stable than in previous corrections. With consistent year-to-date growth and strong performance relative to historical averages, the housing market continues to offer opportunities for a range of stakeholders.&nbsp;

November 2024 National House Price Index shows a 3.8% annual increase and a 1% inflation-adjusted rise. Discover how the housing market is recovering faster than past downturns and what drives today's trends

National House Price Index: November 2024 Analysis and Inflation Trends

How Long Does It Take to Sell a Home in Austin? A Decade of Insights : The Austin real estate market has experienced notable shifts in the average number of days it takes for properties to sell over the past decade. This data reflects changing market dynamics and offers valuable insights into how the local housing market has evolved. Understanding these trends is crucial for buyers, sellers, and real estate professionals looking to navigate the current market effectively. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250118050956.png" alt="" width="" height="" style=""></figure></div>​In 2015, the average time it took for a home to sell in the Austin area was 47 days. This figure remained relatively steady through 2019, with slight increases each year, reaching 55 days by the end of 2019. The market conditions during this period reflected a balanced market where homes were moving at a moderate pace. However, starting in 2020, a significant change began to unfold. The average days to sell dropped to 44 days in 2020 and plummeted further to 20 days in 2021. This dramatic reduction indicated an exceptionally competitive market with high demand and limited inventory.​In 2022, the market began to shift once again. The average days to sell increased to 29 days, signaling a cooling in the market. This upward trend continued into 2023, with homes taking an average of 64 days to sell. By 2024, the average increased further to 69 days, showing a continued slowdown in how quickly properties were moving. The most recent data from January 2025 reveals that the average days to sell have climbed to 87 days, marking the highest point in the past ten years.​Month-by-month data provides a closer look at how this trend has developed. In January 2015, homes took an average of 59 days to sell. By January 2021, this figure dropped sharply to just 32 days. However, by January 2023, it had increased back to 65 days and further rose to 80 days in January 2024. The latest figure in January 2025 stands at 87 days, highlighting a consistent rise over the past three years. February and March followed similar patterns, with March 2024 recording an average of 69 days, showing no change from the previous year, suggesting a plateau in that particular month.​The trend of increasing days on the market can also be observed in the latter half of each year. For example, in December 2020, homes sold in 34 days on average. By December 2023, this number had risen to 78 days, and in December 2024, it reached 81 days. This steady increase suggests that homes are taking longer to sell as market conditions continue to evolve. When analyzing the year-over-year percentage changes, the data shows sharp contrasts. From 2021 to 2022, there was a 40.2% increase in the average days to sell. The five-year analysis from 2021 to 2025 reveals a substantial 35.9% increase in January alone. This growth reflects a notable shift in market dynamics, with homes staying on the market much longer compared to previous years. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250118051057.png" alt="" width="" height="" style=""></figure></div>​Understanding these shifts in the Austin real estate market is essential for making informed decisions. Sellers may need to adjust their pricing strategies and expectations regarding how long it may take to close a sale. Buyers might find increased opportunities to negotiate as properties remain on the market for extended periods. Real estate professionals must stay informed about these trends to better guide their clients through the changing landscape. Overall, the data highlights a significant evolution in the Austin housing market. The increasing average days to sell indicates a transition toward a slower-moving market. By closely monitoring these trends, buyers, sellers, and industry professionals can make more strategic decisions and adapt to the current real estate environment.&nbsp;​

Discover the detailed analysis of average days to sell homes in the Austin real estate market from 2015 to 2025. Learn how selling timelines have evolved and what it means for buyers and sellers today

How Long Does It Take to Sell a Home in Austin? Average Days to Sell (2015-2025)

The New Listing to Pending Ratio (NLPR) is a critical metric that serves as a leading indicator of market activity in real estate. This ratio is calculated by dividing the number of new listings and properties back on the market by the total number of properties that are under contract and pending. A higher ratio indicates a hotter, more competitive market with increasing buyer demand, whereas a lower ratio suggests a softer market with less activity. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250117093448.png" alt="" width="" height="" style=""></figure></div>​ As of January 2025, the NLPR stands at 0.51, reflecting a noticeable softening in the Austin real estate market. This lower ratio suggests a slowdown in buyer demand and an increase in available inventory, creating more opportunities for buyers and posing challenges for sellers. Sellers may need to adjust pricing strategies and offer competitive incentives to attract buyers in this softer market environment. Historically, the NLPR has shown significant fluctuations, reflecting shifts in the real estate market. In the early 2000s, the ratio hovered between 0.45 and 0.92, indicating moderate market conditions. In 2007, the ratio peaked at 1.26, signaling a highly active market, but it sharply declined during the 2008 financial crisis, dropping to as low as 0.50. The market gradually recovered over the following years, with the NLPR climbing to 1.12 in 2012 and reaching a high of 1.34 in 2020. However, starting in 2022, the ratio began to decline, dropping to 0.58 by June, reflecting cooling market conditions influenced by rising interest rates and increased inventory. In 2023, the ratio fluctuated between 0.71 and 1.08, suggesting a more balanced market. In 2024, the NLPR ranged from 0.67 to 1.01, signaling a market transitioning towards balance. Entering 2025, the current ratio of 0.51 points to a softer market, with sellers needing to be more strategic in pricing and marketing their properties, while buyers have greater negotiating power and more choices. Understanding the NLPR provides valuable insights into market dynamics. For buyers, a lower ratio can present more negotiation power and increased inventory options, while sellers may need to price competitively to attract buyers. Conversely, a higher ratio benefits sellers due to heightened demand and reduced competition. Monitoring this ratio helps real estate professionals and clients anticipate market trends and make informed decisions. The New Listing to Pending Ratio remains a vital tool in assessing the health and direction of the Austin real estate market.&nbsp;

Jan 2025 : Explore how the New Listing to Pending Ratio impacts Austin's real estate market. Learn how this key metric signals market shifts, helping buyers and sellers make informed decisions

Austin Real Estate Market Update: January 2025 New Listing to Pending Ratio Analysis

Austin Real Estate Market: A Detailed Analysis of Active Listings :&nbsp;As of January 15, 2025, the Austin real estate market is exhibiting significant shifts in <a href="https://teamprice.com/active-residential-listings">active residential listings</a>, reflecting both seasonal trends and broader market dynamics. Currently, there are 11,120 active residential listings across the Austin area, marking a 12.7% increase from the previous year. Despite this annual growth, the market has seen a substantial decline from the peak of 15,503 active listings recorded in mid-July 2024, representing a 28% drop in available inventory. Month-over-month, active listings have decreased by 7.99%, signaling a contraction in housing supply as the market adjusts post-peak season. This decline is further emphasized by the daily and weekly reductions in listings throughout December 2024 and January 2025. Notably, the largest daily drop occurred on January 1, 2025, with a reduction of 479 listings. The Months of Inventory (MOI) currently stands at 3.88, up from 3.45 a year ago, reflecting a 12.4% increase. This suggests a slight shift towards a more balanced market, yet it still leans towards a seller's market. The Activity Index, a critical measure of market demand, is at 23.2%, down from 26.2% in the previous year, indicating a modest decline in buyer engagement. Breaking down the property conditions, resale homes dominate the market with 6,433 listings, accounting for 57.9% of the active inventory. New construction homes make up 20.2% with 2,246 listings, while properties under construction contribute 12.7% with 1,407 listings. Notably, updated or remodeled homes represent 5.5% of the market, showcasing a significant demand for move-in-ready properties. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250115010223.png" alt="" width="" height="" style=""></figure></div> Price adjustments have been evident across all property types. Resale homes have seen an average price drop of 6.8%, with an average list price of $730,327. New construction properties have experienced a 7.2% price reduction, bringing their average price to $693,237. Homes under construction have an average list price of $550,852, reflecting a 6.5% decline. These adjustments highlight sellers' responses to market pressures and the need to stay competitive. Geographically, Austin leads with 2,864 active listings, followed by Georgetown with 894 listings and Round Rock with 417 listings. The distribution of active listings varies significantly by city, with areas like Jarrell experiencing a notable 16.1% activity index, suggesting heightened market movement in smaller, emerging markets. Foreclosure and distressed properties constitute a small portion of the market. Real Estate Owned (REO) properties account for 0.95% of active listings, while short sales and pre-foreclosure homes make up 0.33% and 0.11%, respectively. This low percentage indicates a relatively stable market without significant distress-driven sales. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250115010245.png" alt="" width="" height="" style=""></figure></div> Vacancy rates also provide insight into market conditions. Of all active listings, 65.8% are vacant, 30.1% are owner-occupied, and 4.1% are tenant-occupied. Cities like Kyle and Jarrell have higher vacancy rates at 80.4% and 76.8%, respectively, reflecting potential opportunities for buyers seeking immediate occupancy. The median days on the market for active listings is currently 83 days. Approximately 32.9% of homes have been listed for 50 days or fewer, while 42.4% have been on the market for over 100 days. This distribution indicates a mix of quick sales and longer-standing inventory, offering diverse options for buyers. Overall, the Austin housing market in early 2025 presents a dynamic environment with increasing inventory levels, moderated buyer activity, and strategic price adjustments. These trends create opportunities for both buyers and sellers to engage in a market that is gradually moving towards equilibrium.&nbsp;

Explore the latest trends in Austin's real estate market for January 2025. Learn how active listings, inventory levels, and price adjustments are shaping opportunities for buyers and sellers across the region

Austin Housing Market Update: Active Listings and Trends for January 15 2025

MBA Purchase Index Jumps 33.3%: Housing Market Sees Strongest Surge Since January 2024 :&nbsp;The <a href="https://teamprice.com/mba-purchase-index">Mortgage Bankers Association (MBA) Purchase Index</a> has surged by 33.3% week-over-week, reaching a level of 162.0 as of January 18, 2025. This notable increase marks the highest level recorded since January 24, 2024, signaling a significant shift in the housing market's momentum. The <a href="https://teamprice.com/mba-purchase-index">MBA Purchase Index</a> is a crucial economic indicator, reflecting the volume of mortgage loan applications for home purchases across the United States. Covering 75% of all U.S. mortgage activity, this index serves as a leading measure of housing market health and consumer demand for homeownership. Historical data highlights the significance of this uptick. For context, the index peaked at 497.80 on July 1, 2005, and stood at 348.20 on January 20, 2021. The current level of 162.0, while substantially lower than historical highs, represents a meaningful recovery from the consistent declines seen throughout 2023 and 2024. This upward trend suggests growing buyer interest and confidence in the housing market after a prolonged period of subdued activity. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250115125435.png" alt="" width="" height="" style=""></figure></div>​ Interestingly, this surge in <a href="https://teamprice.com/mba-purchase-index">mortgage applications</a> is occurring even as mortgage rates have been on the rise. The average <a href="https://teamprice.com/30-year-fixed-mortgage-rate">30-year fixed mortgage rate</a> climbed to 6.93% as of January 9, 2025, up from 6.69% in early December 2024. This increase in rates typically discourages borrowing, yet the opposite trend is observed here. A key driver behind this unexpected rise in applications is seasonality in the real estate market, with the start of the year often bringing renewed buyer activity. Additionally, buyers are motivated by concerns that mortgage rates may continue to rise, prompting them to lock in current rates before they climb higher.&nbsp; <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250115125410.png" alt="" width="" height="" style=""></figure></div> Several other factors may be contributing to this rise in mortgage applications. Notably, interest rates, although rising, have shown some periods of stabilization, offering potential buyers a sense of urgency to act now. Additionally, home prices have moderated, creating opportunities for buyers to enter the market at more affordable price points. This combination of seasonal market activity, concerns over rising rates, improved affordability, and steady financing options is likely driving renewed interest in home purchases. The recent growth in the <a href="https://teamprice.com/mba-purchase-index">MBA Purchase Index</a> also coincides with increased traffic from prospective homebuyers. Data from December 2024 shows that the seasonally adjusted Traffic of Prospective Buyers stood at 31.0, reflecting a gradual yet steady return of buyer activity. Although this figure remains lower than historical averages, it demonstrates a positive trend in buyer engagement and market participation. Historically, January has seen varied performance in the <a href="https://teamprice.com/mba-purchase-index">MBA Purchase Index</a>. For example, in January 2000, the index averaged 268.3, while January 2021 recorded a higher average of 333.8. The current figure of 162.0 remains modest in comparison but marks a promising start for 2025. The data underscores the cyclical nature of the housing market, with periods of growth often following downturns as market conditions stabilize. This <a href="https://teamprice.com/mba-purchase-index">surge in mortgage applications</a> could have far-reaching implications for the housing market. Increased buyer demand may lead to more competitive market conditions, potentially driving home prices upward in certain regions. Conversely, if housing supply does not keep pace with this demand, it could result in inventory shortages, further influencing pricing dynamics. Overall, the 33.3% week-over-week increase in the <a href="https://teamprice.com/mba-purchase-index">MBA Purchase Index</a> is a compelling indicator of renewed market activity. As 2025 unfolds, it will be essential to monitor how this momentum influences broader housing market trends and whether it sustains in the coming months. This development offers a cautiously optimistic outlook for real estate professionals, lenders, and prospective homebuyers alike​

The MBA Purchase Index surged 33.3% to 162.0—the highest since January 2024. Discover how seasonality and rising mortgage rates are driving U.S. housing market trends in 2025

Mortgage Demand Soars Despite Rising Rates: MBA Purchase Index Hits 162.0

Austin Housing Market Update January 2025: Inventory, Pricing, and Trends : The Austin housing market is currently navigating a dynamic period marked by significant shifts in inventory, activity, and pricing. As of January 14, 2025, active residential listings in the Austin area stand at 11,124, reflecting an 8.56% decrease month-over-month and a 12.7% increase year-over-year. Despite this growth compared to last year, inventory levels have been on a steady decline from a peak of 15,503 active listings in July 2024, indicating tightening market conditions.​Pending listings have shown a slight contraction, with 3,349 properties under contract, marking a 3.5% year-over-year decrease. This dip in pending sales is directly tied to rising mortgage rates, which have steadily climbed to 6.93% as of January 9, 2025. Higher borrowing costs have led to decreased affordability, making it more challenging for buyers to enter the market. Additionally, the surge in homeowners insurance premiums has further strained affordability by driving up the total cost of ownership, particularly impacting monthly PITI (Principal, Interest, Taxes, and Insurance) payments. These combined pressures are causing buyers to pull back, leading to softened demand.​The Activity Index, a measure of market engagement, has also declined to 23.1%, representing an 11% drop compared to the previous year. This downturn highlights a slowdown in transactional activity, influenced by rising interest rates and affordability constraints.&nbsp;The Months of Inventory (MOI) has risen to 3.89, a 12.2% increase from last year, indicating a more balanced market leaning slightly towards buyers. This rise suggests that properties are staying on the market longer, offering buyers more options and negotiating power.​Analyzing property conditions, resale homes make up 57.9% of active listings, averaging a price of $730,233, down 6.8%. New construction accounts for 20.2% of listings, with an average price of $693,014, a 7.3% decline. Under-construction homes, comprising 12.6% of the market, average $551,569, reflecting a 6.5% price drop. These trends indicate broader pricing adjustments across different property conditions, possibly as sellers adapt to evolving market dynamics driven by affordability challenges.​Special listing conditions, including foreclosures and short sales, represent a small yet notable portion of the market. Real estate-owned (REO) properties account for 0.94% of active listings, averaging $636,531—a 7.4% decrease. Short sales, making up 0.33% of listings, average $420,082, reflecting an 8.7% drop. These segments highlight distressed property trends that could influence overall market pricing and buyer interest. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250114125755.png" alt="" width="" height="" style="" origin-size="1672,567"></figure></div>​Geographically, market activity varies. Austin leads with 2,877 active listings, showing a 2.2% price increase, while suburban markets like Georgetown and Pflugerville have 890 and 273 listings, respectively. Georgetown has experienced a 6.2% price increase in pending sales, and Pflugerville leads with a 7% rise in activity. Notably, Kyle and Manor show robust pending sales growth of 7.3% and 6.5%, reflecting growing demand in these areas despite broader affordability challenges.​The market's occupancy status reveals that 65.7% of listings are vacant, offering immediate move-in opportunities, while 30.2% are owner-occupied, and 4% are tenant-occupied. This mix suggests a healthy supply of ready-to-sell properties, potentially catering to buyers seeking swift transactions. In conclusion, the Austin housing market is exhibiting signs of moderation with rising inventory and softened buyer demand. Higher mortgage rates and increasing homeowners insurance premiums are applying upward pressure on monthly housing costs, leading to greater buyer hesitation. However, the year-over-year increase in active listings and the diversity in property conditions indicate evolving opportunities for both buyers and sellers. Understanding these detailed market trends is essential for navigating the current landscape effectively.&nbsp; Visit our <a href="https://teamprice.com/active-residential-listings">Active Residential Listings in the Austin-Area</a> page under <a href="https://teamprice.com/insight-and-statistics">Insight and Statistics</a> for the latest data and information on real estate inventory in the Austin-Area.&nbsp;&nbsp;

Latest Austin housing market trends for January 2025. Understand changes in inventory, buyer demand, pricing, and how property conditions are shaping the real estate landscape

Austin Housing Market Update January 2025: Inventory, Pricing, and Trends

Austin Housing Market Trends: 2024 vs 2025 Detailed Analysis : The Austin Area housing market experienced notable shifts between 2024 and 2025, reflecting evolving trends in inventory, pricing, and market dynamics across major cities. This comparative analysis offers a detailed look at how the market transitioned over the course of a year, providing valuable insights into buyer and seller behavior. In 2024, <a href="https://teamprice.com/cities/austin-tx">Austin</a> reported 2,577 active residential listings with an average price of $1,078,628 and a median price of $674,999. The market had 4.35 months of inventory, positioning it in a balanced state leaning slightly toward a seller's market. By 2025, active listings in Austin grew to 2,877, a 12% increase. However, the average price declined to $977,610, while the median price dropped to $597,000. The months of inventory decreased to 4.01, indicating a tighter market despite the increased inventory. <a href="https://teamprice.com/cities/bastrop-tx">Bastrop</a>'s market dynamics also shifted noticeably. In 2024, Bastrop had 235 active listings with an average price of $502,036 and a median price of $458,000. The months of inventory stood at 4.90, categorizing it as a neutral market. In 2025, listings rose to 262, and the average price slightly increased to $520,433. However, the median price declined to $424,995, and months of inventory increased to 5.70, moving Bastrop into a more balanced, neutral state. <a href="https://teamprice.com/cities/buda-tx">Buda</a> experienced significant changes in its housing market. Active listings rose from 158 in 2024 to 229 in 2025. The average price decreased from $546,344 to $462,567, and the median price dropped from $429,950 to $389,999. The months of inventory increased from 2.29 to 3.40, showing a shift toward a more balanced market from a strong seller's market. <a href="https://teamprice.com/cities/burnet-tx">Burnet</a> saw its average price fall from $927,060 in 2024 to $738,026 in 2025, alongside a median price drop from $579,000 to $510,000. Active listings increased from 87 to 98, but the months of inventory slightly decreased from 7.91 to 7.74, maintaining Burnet's position in a buyer's market. <a href="https://teamprice.com/cities/cedar-park-tx">Cedar Park</a> experienced a shift toward a stronger seller's market. Active listings rose from 96 in 2024 to 110 in 2025. The average price dropped from $652,478 to $607,751, and the median price remained relatively stable, increasing slightly from $507,250 to $509,500. Notably, months of inventory decreased from 2.87 to 1.96, marking Cedar Park as a competitive seller's market. <a href="https://teamprice.com/cities/dripping-springs-tx">Dripping Springs</a> saw a notable reduction in inventory pressure. In 2024, it had 189 active listings with an average price of $1,074,554 and a median price of $849,900. The months of inventory were high at 7.27. By 2025, listings declined to 166, and while the average price increased to $1,156,619, the median price dropped to $789,000. The months of inventory decreased to 3.72, transitioning Dripping Springs to a more balanced market. <a href="https://teamprice.com/cities/georgetown-tx">Georgetown</a>'s active listings increased from 740 in 2024 to 890 in 2025. The average price dropped from $580,779 to $567,712, and the median price fell from $528,971 to $509,545. The months of inventory also decreased from 3.71 to 3.59, maintaining its status as a market favorable to sellers. <a href="https://teamprice.com/cities/hutto-tx">Hutto</a> saw growth in inventory from 178 listings in 2024 to 210 in 2025. The average price slightly decreased from $477,298 to $475,218, while the median price increased from $401,506 to $415,000. Months of inventory rose from 2.16 to 3.94, indicating a shift toward a more balanced market. <a href="https://teamprice.com/cities/lago-vista-tx">Lago Vista</a> experienced a decline in average pricing from $661,890 in 2024 to $627,168 in 2025, with median prices remaining stable at $525,000. Active listings slightly decreased from 185 to 183, and months of inventory dropped from 9.02 to 8.58, continuing its trend as a buyer's market. Overall, the Austin Area showed a trend of increasing inventory and softening prices from 2024 to 2025. Seller's markets became more balanced in many areas, while buyer's markets like Burnet and Lago Vista remained steady. Understanding these shifts in market dynamics provides crucial insights for buyers and sellers navigating the evolving real estate landscape in Central Texas

Explore the significant shifts in the Austin and Austin Area housing markets between 2024 and 2025. Learn how inventory levels, median prices, and market dynamics evolved, providing valuable insights for buyers, sellers, and investors

Austin Housing Market Trends: 2024 vs 2025 Detailed Analysis

Austin Housing Market 2025: Hottest &amp; Coldest Areas and Price Trends : The Austin real estate market is showcasing distinct trends across various regions and price points, highlighting both hot and cold segments. <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">Absorption rates</a>, a crucial measure of market demand, reveal how quickly available homes are selling. This analysis dives into the hottest and coldest markets, offering insights into what these trends mean for both buyers and sellers navigating Austin's evolving housing landscape.​Top 5 Hottest Markets in Austin Real EstateCedar Park leads as one of the hottest markets in Austin. Homes priced around $300,000 in Cedar Park show an impressive 89% <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption rate</a>, with $400,000 homes at 61% and $900,000 properties reaching 117%. This sustained demand suggests that buyers must act quickly and come prepared with competitive offers.Round Rock, particularly in the 78681 zip code, exhibits strong market activity. The $300,000 price range holds a 67% absorption rate, the $700,000 range sits at 58%, and $800,000 homes peak at 150%. Buyers targeting Round Rock should expect fast-moving inventory and may need to consider pre-approval and flexible negotiations.Dripping Springs shows high demand, especially in the $300,000 market with a 117% absorption rate. The $500,000 and $600,000 markets follow with 49% and 41% rates, respectively. Buyers should anticipate limited availability and competitive bidding in this area.Leander is another red-hot market, with the $300,000 range at 113% absorption and the $800,000 range at 57%. Buyers interested in Leander should move swiftly and be prepared for bidding wars.Austin's 78728 zip code stands out with a 150% absorption rate for $300,000 homes, while the $400,000 and $500,000 ranges show 50% and 67% rates. Buyers in this area must act decisively as homes are selling quickly.​Top 5 Coldest Markets in Austin Real EstateElgin's high-end market remains slow, with $700,000 to $1,000,000+ homes reflecting a 0% <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption rate</a>. Buyers in this segment may explore price reductions or seller concessions. Manor displays stagnant demand in the $800,000 and $900,000 price ranges with 0% absorption. Buyers can leverage this by negotiating better terms and pricing.Marble Falls shows slower activity in higher price points, particularly in the $800,000 and $1,000,000+ ranges, where absorption rates are minimal. Buyers here may have more room to negotiate.Taylor sees limited demand in the $800,000 market with absorption rates near 0%. Buyers can expect less competition and more flexibility in negotiations.Pflugerville experiences slower movement in the $800,000 and above ranges, with absorption rates lagging. Buyers may find opportunities for favorable pricing in these segments. Implications for BuyersFor buyers targeting hot markets, such as Cedar Park, Round Rock, and Dripping Springs, preparation is key. These areas experience rapid home sales, requiring buyers to secure financing early, act swiftly, and possibly enter bidding wars. Competitive offers and flexibility can improve the chances of success.Conversely, buyers exploring cold markets like Elgin, Manor, and Marble Falls may enjoy greater negotiation power. Slower-moving inventory allows more time for due diligence and potentially securing homes below the asking price. This could be ideal for buyers seeking value or those interested in luxury properties.&nbsp;Understanding where the market is hot or cold helps buyers and sellers make informed decisions. Staying updated on <a href="https://teamprice.com/austin-real-estate-absorption-rates-market-demand">absorption rates</a> and regional demand is essential for navigating Austin's dynamic real estate market successfully. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250114121926.png" alt="" width="" height="" style=""></figure></div>

Explore the 2025 Austin housing market with in-depth analysis of the hottest and coldest areas and price points. Discover where homes are selling fastest and where buyers can find the best deals in Cedar Park, Round Rock, Dripping Springs, Leander, and more. Stay informed with key real estate trends and absorption rates across Austin

Austin Housing Market 2025: Hottest & Coldest Areas and Price Trends

Austin Lease Market Analysis: Why Supply Is Outpacing Demand in 2025 : The Austin residential lease market has shown significant shifts over the past two years, revealing important trends for property owners, investors, and renters alike. Analyzing data from January 2023 through January 2025 highlights evolving dynamics in leasing activity, price adjustments, and market balance. In 2023, the Austin lease market experienced steady growth in new listings, with January starting at 2,642 new listings. This figure steadily increased throughout the year, peaking at 3,898 in July. January 2024 showed a slight increase to 2,697 new listings. However, January 2025 data, recorded only from January 1 to January 13, reported 1,151 new listings. When projected for the full month, January 2025 could reach approximately 2,745 new listings, suggesting a potential outpacing of the previous two January's. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250113115730.png" alt="" width="" height="" style="" origin-size="1664,1094"></figure></div> Pending transactions followed a similar pattern. In January 2023, pending leases totaled 1,926, growing to 2,157 in January 2024. For January 2025, pending leases were 797 within the first 13 days. Projected for the entire month, this figure could reach approximately 1,901, slightly below January 2024 but still reflecting a healthy level of tenant demand. Price adjustments have also been a defining feature of the lease market. In 2023, landlords frequently reduced prices to stay competitive, with monthly price decreases ranging from 1,926 in January to 3,880 in October. This trend continued into 2024, although by December, price reductions had fallen to 2,036, an 11% drop from the previous year. This decline in pricing flexibility may suggest landlords are becoming less willing or able to lower rents to attract tenants. A critical measure of market health is the New Listing to Pending Ratio (NLPR). This ratio compares the number of new listings to the number of properties that move to pending status. A ratio of 1 indicates a balanced market, where supply meets demand. A ratio below 1 suggests that inventory exceeds demand, while a ratio above 1 signals that demand outpaces available listings. Throughout 2023, Austin's NLPR mostly ranged between 0.73 and 0.80, reflecting a relatively balanced market. However, the preliminary data for January 2025 shows a ratio of 0.58, reflecting a shift towards excess supply. If the projected figures hold, this ratio could improve, signaling a more balanced market than initially observed. Expired listings, representing properties that did not lease within their listing period, also rose sharply. In December 2023, expired listings stood at 423, climbing to 525 by December 2024. January 2025 recorded 71 expired listings in the first 13 days, projecting to about 169 for the full month. This projection suggests improvement over previous months, potentially indicating better lease activity. Year-over-year comparisons further emphasize these trends. Between January 2023 and January 2024, new listings grew by a modest 1.8%, but the projected total for January 2025 indicates a stronger growth trajectory. Leased properties, while initially appearing lower, may align more closely with previous years when accounting for the full month. The NLPR's projected adjustment could signal steadier market conditions than the partial data suggests. Price reductions were most aggressive during peak months, but the decline in reductions toward the end of 2024 suggests that landlords might have hit a threshold in pricing flexibility. The market's absorption rate—the percentage of available properties that successfully leased—remained between 66% and 70% throughout the period, indicating consistent but gradually weakening tenant demand. In summary, the Austin residential lease market has transitioned from a relatively balanced state in 2023 to one characterized by increasing supply and softening demand in early 2025. However, when accounting for the partial January 2025 data, projections suggest the market may be performing more steadily than initially observed. Understanding these trends is essential for property owners and investors aiming to navigate Austin's evolving rental landscape.&nbsp;

Latest trends in Austin's residential lease market from 2023 to 2025. Discover how rising inventory, falling pending leases, and changing demand are reshaping the rental landscape

Austin Lease Market Analysis: Why Supply Is Outpacing Demand in 2025

Understanding the Shift in Austin's Housing Market: Sold Over List Price Trends from 2000 to 2025 :&nbsp;The Austin real estate market has experienced significant shifts over the past 25 years. Analyzing data on homes sold over the list price from 2000 to early 2025 reveals important trends that provide valuable insight into market conditions, buyer behavior, and economic influences.​In the early 2000s, the Austin housing market displayed moderate competitiveness. From 2000 to 2005, the percentage of homes sold over the list price averaged between 17% and 27%. The highest point during this period occurred in May and June 2000, when 30.8% of properties sold above the asking price. This period of relative stability shifted slightly downward leading up to the 2008 financial crisis. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250113103259.png" alt="" width="" height="" style=""></figure></div>​During the 2006 to 2010 period, the market began to soften. In 2007, the percentage peaked at 24.0% in April but dropped sharply as the housing market collapsed in 2008. By December 2010, only 10.1% of homes sold above the list price, reflecting buyer caution and market instability.​The recovery phase from 2011 to 2019 saw a gradual increase in competitiveness. In 2012, the market began to regain strength, with sold-over-list percentages rising back into the 20% range. By 2019, the market had stabilized with an average of 20.0% and a peak of 25.6% in May, signaling a healthy demand but not an overheated market.​A major surge in buyer demand and market dynamics occurred between 2020 and 2022. This period saw historically low mortgage rates and limited housing inventory, creating a surge in buyer demand. In 2020, the sold-over-list percentage rose from 17.0% in January to 38.2% in December. The market reached unprecedented levels in 2021, peaking at 72.6% in April, with an annual average of 58.5%. This surge continued into early 2022, hitting 67.7% in April. However, by the end of 2022, the percentage sharply declined to 11.6% in December, marking a significant market correction.​The years 2023 and 2024 have been characterized by market stabilization. In 2023, the percentage of homes sold over the list price averaged 13.7%, with a high of 17.9% in April. This trend continued into 2024, averaging 12.6%, with a peak of 17.0% in April. Early data for 2025 suggests further cooling, with a consistent 8.7% rate across the first few months. <div class="se-component se-image-container __se__float-center"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250113103246.png" alt="" width="" height="" style=""></figure></div> These trends reflect how market dynamics such as interest rates, housing inventory, and economic cycles directly impact the percentage of properties selling over list price. The initial surge in 2020 and 2021 was driven by favorable lending conditions and low inventory, while the subsequent decline reflects rising interest rates, increased inventory, and shifting buyer behavior. Understanding these historical shifts is crucial for buyers, sellers, and real estate professionals aiming to navigate the evolving Austin housing market​

Detailed trends of Austin's housing market from 2000 to 2025, focusing on the percentage of homes sold over the list price. Understand how market dynamics, interest rates, and housing inventory have influenced real estate competitiveness in Austin over the past 25 years. 

Austin Housing Market Trends: Sold Over List Price Analysis (2000-2025)

Austin’s housing market is shifting in 2025 as the price-to-income ratio returns to historical norms. Find out why high mortgage rates are still keeping homeownership just out of reach for many buyers.&nbsp;Read Time : 2 minutes January 13, 2025, 6:55 am By Dan Price Housing Affordability in 2025: Price-to-Income Ratio Returns to Historical Norms :&nbsp;The Austin real estate market is experiencing a notable shift as the <a href="https://teamprice.com/affordability">Austin housing affordability</a> indicators return to historical levels. In January 2025, the median sold price of homes dropped to $399,999, reflecting a significant 27.27% decline from the market peak of $550,000 in May 2022. This price correction has brought the Median Sold Price-to-Income Ratio back to 3.77, closely aligning with the 25-year historical average of 3.73. This development suggests that home prices are once again more in balance with local income levels after years of dramatic increases. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250113125511.png" alt="" width="" height="" style=""></figure></div> Despite the improvement in the price-to-income ratio, many buyers still face <a href="https://teamprice.com/affordability">affordability</a>&nbsp;challenges due to elevated borrowing costs. The percentage of income that homeowners allocate toward their monthly PITI (Principal, Interest, Taxes, and Insurance) payments stands at 34.92%, significantly above the long-term average. Even with a 20% down payment, the typical monthly mortgage payment is around $3,088. This elevated PITI ratio can be attributed to persistently high mortgage interest rates, now approaching 7.5%. To put this in perspective, the PITI burden peaked at 47.19% in May 2022 when both home prices and interest rates surged. Historically, the share of income spent on mortgage payments has fluctuated. For example, it was 31.02% in June 2000, 26.16% in November 2004, and dropped to 23.02% in January 2012. The recent reduction from the 2022 peak offers some relief, but affordability remains a challenge due to financing costs. <div class="se-component se-image-container __se__float-none"><figure><img src="https://quicktours-static.s3.us-west-1.amazonaws.com/agent_richtext/20250113125526.png" alt="" width="" height="" style=""></figure></div> Interest rates have played a critical role in shaping housing affordability. During March 2020, mortgage rates were at a low 3.98%, enabling many buyers to enter the market. However, by April 2022, rates climbed to 5.75%, and by early 2025, they are nearing 7.5%. This sharp increase has offset the benefits of lower home prices, as higher borrowing costs continue to strain household budgets. The current market conditions suggest that affordability could improve if either home prices continue to decline or interest rates fall. A significant drop in interest rates would reduce monthly mortgage payments and ease the PITI burden. Conversely, further price adjustments could make homeownership more accessible without relying on rate changes. For buyers, understanding these affordability dynamics is crucial in making informed purchasing decisions. Sellers must also adapt to these market shifts, recognizing that elevated borrowing costs may impact buyer demand. As the Austin housing market continues to stabilize, tracking trends in pricing, interest rates, and income ratios will be essential for navigating the evolving landscape of real estate in 2025.&nbsp;

<blockquote class="twitter-tweet">Austin Real Estate : Median Sold Price to Income Ratio now at pre-pandemic level; reverts back to 25 year average! <a href="https://t.co/3JazmokuJ5">https://t.co/3JazmokuJ5</a><a href="https://t.co/O1MCeUikYl">https://t.co/O1MCeUikYl</a> <a href="https://t.co/Gj2JyvHqYk">pic.twitter.com/Gj2JyvHqYk</a>&mdash; Team Price | Austin Real Estate Broker (@teamprice) <a href="https://twitter.com/teamprice/status/1878788092003570050?ref_src=twsrc%5Etfw">January 13, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Austin's 2025 housing market. The price-to-income ratio has returned to its 25-year average as median home prices fall to $399,999. However, high mortgage rates nearing 7.5% continue to strain affordability. Learn what this means for buyers and sellers

Austin Housing Affordability 2025: Price-to-Income Ratio Returns to Normal

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