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<h1>2025 Monday Touch Point: Austin Real Estate Market Updates </h1>Weekly Insights Hosted by Dan Price, Team Price Real Estate

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Welcome to the 2025 Monday Touch Point archive, your go-to hub for weekly Austin real estate market updates from Team Price Real Estate! Each Monday, we unpack the latest trends—inventory shifts, pricing data, economic forecasts, and more—delivered through hour-long video sessions packed with actionable insights. Whether you’re an agent sharpening your skills or a client navigating the market, browse below to watch every meeting and stay ahead in Austin’s dynamic landscape!

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​Understanding <a href="https://teamprice.com/cap-rate">Austin's Cap Rate</a> Trends: A Comprehensive AnalysisThe Austin real estate market has experienced notable fluctuations over the years, particularly in capitalization rates, or cap rates, which are essential for assessing the profitability of rental properties. A cap rate is calculated by dividing a property's net operating income by its current market value, providing a percentage that reflects the expected return on investment. Recent data indicates a downward trend in Austin's cap rates, influenced by various economic factors.​In March 2023, <a href="https://teamprice.com/cap-rate">Austin's cap rate</a> stood at 3.47%. By March 2025, it had declined to 3.23%, suggesting that property values and associated costs have risen faster than rental incomes. This trend implies that investors are receiving lower returns relative to property prices, making it crucial to evaluate the sustainability of such investments.​<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250320120900.png" alt="" width="" height="" style=""></figure></div>​ Comparing cap rates to other investment options, such as the six-month Treasury Bill yield, provides additional insight. Historically, Austin's cap rates were higher than Treasury yields, making real estate investments more attractive. However, in recent years, this relationship has reversed. For instance, in March 2025, the six-month Treasury yield was 4.30%, exceeding Austin's cap rate by 1.07 percentage points. This negative spread suggests that risk-free government bonds offer higher returns than Austin's rental properties, potentially influencing investor decisions.​Examining historical trends, Austin's cap rates were between 6% and 7% in the early 2000s, indicating higher returns for investors. Over time, as Austin's popularity and property values increased, cap rates declined, reaching below 3% around 2021. This decline reflects a market where property appreciation outpaced rental income growth, leading to lower yields for investors.​Cap rates also vary significantly across different Austin zip codes. In March 2025, the 78725 zip code offered the highest cap rate at 6.45%, making it attractive for investors seeking higher rental yields. Other areas, such as Cedar Creek (78612) and Marble Falls (78654), had cap rates exceeding 5%, indicating strong rental returns relative to property values. Conversely, upscale neighborhoods like 78703, 78733, and 78735 had cap rates below 1%, suggesting that investments in these areas rely more on long-term property appreciation than immediate rental income.​ <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250320121017.png" alt="" width="" height="" style=""></figure></div> The declining cap rates in Austin highlight the importance for investors to carefully assess their investment strategies. With current cap rates lower than Treasury yields, some investors might consider alternative investments offering higher returns with lower risk. However, real estate investments also provide potential benefits such as property appreciation and tax advantages, which should be factored into any investment decision.​In conclusion, Austin's real estate market has transitioned from offering high rental yields to being more appreciation-driven. Investors need to adapt their strategies accordingly, considering both current cap rates and alternative investment opportunities to make informed decisions that align with their financial goals. Q1: What is a cap rate in real estate investing? A1: A capitalization rate, or cap rate, measures the return on investment for a rental property, calculated by dividing the net operating income by the property's current market value. It helps investors assess the profitability of a property.Q2: Why are Austin's cap rates declining? A2: Austin's cap rates are declining due to property values and associated costs rising faster than rental incomes, leading to lower returns relative to property prices.Q3: How do Austin's cap rates compare to Treasury yields? A3: As of March 2025, Austin's cap rate is 3.23%, while the six-month Treasury Bill yield is 4.30%. This means that risk-free government bonds currently offer higher returns than Austin's rental properties, potentially influencing investor decisions.​

Explore the latest trends in Austin's real estate cap rates, including historical data, comparisons with Treasury yields, and zip code-specific insights to guide your investment decisions in 2025.

Austin's Cap Rate Trends: A Data-Driven Analysis for 2025

​Exploring Housing Affordability in Austin Through the Numbers<a href="https://teamprice.com/affordability">Housing affordability in Austin</a> has been a hot topic for years, and the latest data from Team Price Real Estate’s affordability report, dated March 19, 2025, gives us a clear look at how monthly mortgage payments have evolved and what they mean for residents today. This report dives deep into the numbers, tracking the monthly mortgage payment—known as PITI, which stands for Principal, Interest, Taxes, and Insurance—over 25 years. It uses the median sold price each month, assumes a 20% down payment, and applies the 30-year mortgage rate at that time. Let’s walk through what this data reveals about Austin’s housing market, from historical trends to current costs across the city’s zip codes.Back in 2000, the average monthly PITI was $1,195, a figure that stayed relatively steady through the early 2000s. For example, in 2001, it averaged $1,163, and by 2003, it dipped to $1,101. Things started shifting after the 2008 financial crisis, with 2009 showing a modest drop to $1,244 as home prices and interest rates adjusted. The 2010s marked a slow climb, with payments holding at $1,242 in 2010 and reaching $1,912 by 2019. Then came the 2020s, and the numbers took off. In 2021, the average jumped to $2,564, and by 2022, it hit $3,542—a peak driven by soaring home prices and rising rates. The report shows some leveling off in 2023 and 2024, both averaging $3,612, before settling at $3,400 in March 2025. That’s nearly triple the cost from 2000, showing how much tougher it’s gotten to buy a home in Austin over time. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250319114358.png" alt="" width="" height="" style=""></figure></div>​ Looking at year-over-year changes, the data highlights some big swings. In 2022, the largest annual increase was $1,083 in May, with an average rise of $842 across the year. That translates to a peak percentage jump of 40.3%, a massive shift from the year before. Compare that to 2009, when payments dropped by as much as $189 in October, totaling a $1,352 decline for the year—a 13.8% decrease tied to the recession. More recently, the first three months of 2025 show smaller changes: a $70 drop in January, $99 less in February, and a $2 dip in March, adding up to a $171 decrease so far. These numbers suggest the market might be stabilizing after years of rapid growth, though it’s still far from the affordability of decades past.Month-to-month shifts offer another layer of detail. The biggest single-month increase was $403 in April 2022, a 12.2% jump, while the largest drop was $251 in January 2025, down 9.0%. In 2025 alone, January fell by $251, February rose by $90, and March climbed $136—a 4.2% uptick. Over the years, April often sees gains, like $200 in 2021, while January and September tend to show declines. These fluctuations reflect seasonal patterns and sensitivity to interest rate changes, giving a sense of how unpredictable monthly costs can be for Austin homebuyers.The report also breaks down affordability across 75 zip codes in the Austin area, measuring how much of a household’s income goes to PITI with a 20% down payment. Out of these, only two zip codes are considered affordable, meaning PITI takes up 35% or less of median income. Twenty-four fall into the moderately affordable range, between 35% and 50%, while 49 are unaffordable, exceeding 50%. In Jarrell (zip code 76537), the median income is $83,401, and PITI is $2,349, using 33.8% of income—making it one of the most affordable spots.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250319114538.png" alt="" width="" height="" style=""></figure></div> Elgin (78621) follows, with $85,262 in income and $2,514 in PITI, at 35.4%. On the other end, Florence (76527) has a median income of $65,245 but a PITI of $6,005, eating up 110.4% of income. In Austin’s 78746 zip code, where income is $179,148, PITI reaches $18,378—123.2% of income, far beyond what most can manage. The report calculates that 78746 residents would need $630,013 in income to keep PITI at 35%, showing a huge gap.Down payment size changes the picture too. The report compares PITI across five scenarios: 20% down with no private mortgage insurance (PMI), 15% with 0.23% PMI, 10% with 0.46% PMI, 5% with 0.59% PMI, and FHA’s 3.5% with 0.55% mortgage insurance premium (MIP). For a $760,000 home in 78701, PITI is $5,652 with 20% down, but it jumps to $6,475 with 5% down—a 14.6% increase. In Driftwood (78619), with a $1,299,900 median price, it’s $9,401 at 20% and $10,809 at 5%, adding $1,408 monthly. Across Austin’s average of $625,000, PITI ranges from $4,649 to $5,327 depending on the down payment. Smaller down payments mean higher costs, especially for buyers with less cash upfront.Mortgage insurance plays a big role in these numbers. For conventional loans with less than 20% down, PMI ranges from 0.19% to 1.86% of the loan amount annually, depending on credit score and loan-to-value ratio. For a $200,000 loan at 1.0%, that’s $2,000 a year, or $166 monthly. FHA loans, with 3.5% down, charge 1.75% upfront and 0.55% annually—down from 0.85% before March 2023. On a $300,000 home with 3.5% down, FHA’s monthly cost is $208, compared to $292 for a conventional loan. The report shows how these extras protect lenders, not borrowers, and add up quickly for those stretching to buy.Across cities, the data varies widely. Austin’s median price of $625,000 yields a PITI of $4,649 with 20% down, while Buda’s $411,825 home costs $3,223. Driftwood’s $1,299,900 price tag means $9,400 monthly, and Jarrell’s $299,990 keeps it at $2,349. These figures show how location and price shape affordability, with rural areas like Jarrell offering lower costs than central Austin or upscale Driftwood. The report’s zip code details—like $3,483 in Pflugerville (78660) versus $9,401 in Driftwood (78619)—highlight the range of experiences within the metro area.This <a href="https://teamprice.com/affordability">affordability report</a>, last revised on March 19, 2025, pulls together decades of data to show how Austin’s housing market has changed. From a modest $1,195 monthly payment in 2000 to $3,400 today, the numbers tell a story of rising costs and shrinking accessibility. Whether it’s the year-over-year surges of 2022, the monthly ups and downs of 2025, or the stark differences across zip codes, the data offers a detailed snapshot of what it takes to buy a home in Austin right now. Q1: How much does the average mortgage cost in Austin in 2025?A: According to Team Price Real Estate’s March 19, 2025, report, the average monthly mortgage payment (PITI) in Austin with a 20% down payment is $4,649 for a median-priced home of $625,000. This varies by area, with Jarrell at $2,349 for a $299,990 home and Driftwood at $9,400 for a $1,299,900 home.Q2: Is housing in <a href="https://teamprice.com/affordability">Austin affordable</a> in 2025?A: The 2025 affordability report shows that only 2 of 75 zip codes in the Austin area are affordable, where PITI is 35% or less of median income. Twenty-four are moderately affordable (35-50%), and 49 are unaffordable (over 50%). For example, in 78746, PITI takes up 123.2% of income, while Jarrell stays at 33.8%.Q3: How have Austin home prices changed over time?​The report tracks PITI from $1,195 in 2000 to $3,400 in March 2025, nearly tripling over 25 years. Home prices and mortgage rates drove big jumps, like $1,083 year-over-year in 2022, though 2023 and 2024 stabilized around $3,612, reflecting a mix of price growth and rate shifts.&nbsp;

Explore Austin’s housing affordability in 2025 with detailed data on PITI, historical trends, and zip code breakdowns from Team Price Real Estate’s latest report. Learn how mortgage costs have tripled since 2000 and what it takes to buy a home today

Austin Housing Affordability in 2025: A Data-Driven Look at Mortgage Costs

Austin Area Housing Market Shifts: Inventory Changes from January to March 2025The housing market in the Austin Area has undergone some striking changes in early 2025, especially when it comes to how long homes are staying on the market. By digging into data from January 16, 2025, and March 17, 2025, we can track how inventory levels—measured in months—have shifted across 30 key cities in the region. This information, pulled together by Team Price Real Estate, shows the number of months it would take to sell all active listings if no new homes hit the market. Cities with less than 4.9 months of inventory are labeled sellers’ markets, those with 5 to 6.9 months are neutral, and anything over 7 months points to a buyers’ market. Let’s take a closer look at what’s happening in places like Austin, Marble Falls, and Cedar Park based on this detailed breakdown.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250317120402.png" alt="" width="" height="" style=""></figure></div> In January 2025, the Austin Area market was tilted toward sellers, with 17 of the 30 cities (57%) showing less than 4.9 months of inventory. Just 5 cities (17%) had over 7 months, indicating a buyers’ market, while 8 cities (27%) fell into the neutral range of 5 to 6.9 months. The median inventory across all cities was 4.48 months, and the average was 5.09 months, reflecting a market where homes sold fairly quickly. By March 17, 2025, things had flipped. Only 3 cities (10%) stayed in the sellers’ market range, while 14 cities (47%) were neutral, and 13 cities (43%) moved into buyers’ territory with over 7 months of inventory. The median climbed to 6.61 months, and the average hit 7.41 months, suggesting a noticeable slowdown in home sales throughout the Austin Area.Certain cities saw dramatic inventory jumps over these two months. Marble Falls, for example, watched its months of inventory rise from 4.76 in January to 10.37 in March—a 5.61-month increase. That’s a 117.86% surge, pushing it from a sellers’ market to a solid buyers’ market. Cedar Park’s inventory went from 1.96 months to 3.88 months, up 1.92 months or 97.96%. It’s still a sellers’ market but getting closer to neutral. Leander’s inventory grew from 3.12 months to 6.01 months, a 2.89-month rise or 92.63%, shifting it from sellers’ to neutral territory. Lockhart increased from 3.22 months to 6.14 months, a 2.92-month gain or 90.68%, also landing in the neutral zone. Smithville wrapped up the top five, with inventory climbing from 5.89 months to 11.00 months—a 5.11-month jump or 86.76%—making it a strong buyers’ market by March.Other Austin Area cities showed big changes too. Austin itself moved from 4.04 months of inventory in January to 7.10 months in March, a 3.06-month increase or 75.74%. This change took the city from a sellers’ market to a buyers’ market, with active listings growing from 2,882 to 3,839. Georgetown’s inventory rose from 3.60 months to 6.55 months, up 2.95 months or 81.94%, placing it in neutral territory. Driftwood saw a hefty increase, going from 6.23 months to 11.00 months (a 4.77-month rise or 76.57%), firmly favoring buyers. San Marcos jumped from 4.89 months to 8.04 months, a 3.15-month gain or 64.42%, also leaning toward buyers by March. Lakeway’s inventory increased from 5.25 months to 9.15 months, up 3.90 months or 74.29%, crossing into buyers’ market status.Not all shifts were huge, but the trend toward more inventory is unmistakable across the Austin Area. Kyle’s months of inventory went from 3.41 to 5.64, a 2.23-month increase or 65.40%, moving from sellers’ to neutral ground. Pflugerville’s inventory rose from 2.92 months to 5.28 months, up 2.36 months or 80.82%, hitting the neutral range. Round Rock, still a sellers’ market, saw inventory grow from 2.83 months to 4.34 months, a 1.51-month rise or 53.36%. Wimberley’s inventory increased from 6.75 months to 10.23 months, a 3.48-month jump or 51.56%, solidifying its buyers’ market position. Even cities with smaller percentage changes, like Taylor (6.19 to 6.59 months, up 0.40 months or 6.46%), show a market cooling off since January.The numbers also tie into active listings across the Austin Area. In January, 22 cities (73%) had less than 6 months of inventory, but by March, that dropped to 10 cities (33%). Meanwhile, cities with over 6 months of inventory rose from 8 (27%) in January to 20 (67%) in March. Liberty Hill, for instance, saw inventory increase from 4.20 months to 6.63 months, a 2.43-month rise or 57.86%, with active listings climbing from 337 to 418. Hutto’s inventory grew from 4.20 months to 5.95 months, up 1.75 months or 41.67%, with listings rising from 221 to 264. These figures reveal how supply is outpacing sales in many parts of the region.Smaller Austin Area towns felt the shift too. Bastrop’s inventory went from 5.60 months to 7.77 months, a 2.17-month increase or 38.75%, tipping into a buyers’ market. Manchaca, starting at 8.00 months in January, rose to 9.60 months by March, up 1.60 months or 20.00%. Spicewood reached 11.00 months in March, up from 9.33 months in January (a 1.67-month gain or 17.90%). Burnet, with a smaller change, saw inventory creep from 8.27 months to 9.26 months, a 0.99-month rise or 11.97%. These numbers paint a picture of a region where homes are lingering longer, giving buyers more breathing room.<div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250317120533.png" alt="" width="" height="" style=""></figure></div>​ So, what’s the takeaway for the Austin Area housing market in early 2025? The data shows a clear move from a fast-moving, seller-friendly market in January to a slower, more balanced one by March. Cities like Marble Falls, Cedar Park, and Leander top the list with some of the largest percentage increases in inventory, while Austin and Georgetown show steady supply growth. Whether it’s a busy urban center or a quieter suburb, the numbers tell a story of change, with 43% of cities favoring buyers by mid-March compared to just 17% two months earlier. For anyone keeping an eye on Austin Area real estate trends, this data offers a solid look at how inventory dynamics evolved over this short but revealing stretch.Q1: How is the housing market trending in the Austin Area in 2025?A: In early 2025, the Austin Area housing market moved from a seller-heavy scene to a more balanced one. Team Price Real Estate data shows that in January, 57% of 30 tracked cities had less than 4.9 months of inventory, favoring sellers. By March, only 10% stayed in that range, while 43% had over 7 months, favoring buyers, and 47% were neutral (5–6.9 months). The median inventory rose from 4.48 months to 6.61 months, signaling homes are selling more slowly across the area.Q2: Which Austin Area cities saw the biggest inventory increases in 2025?A: From January to March 2025, Marble Falls topped the list with a 117.86% increase in months of inventory (4.76 to 10.37), followed by Cedar Park at 97.96% (1.96 to 3.88), Leander at 92.63% (3.12 to 6.01), Lockhart at 90.68% (3.22 to 6.14), and Smithville at 86.76% (5.89 to 11.00). These shifts, sourced from Team Price Real Estate, show a clear trend toward higher supply in these markets.Q3: What does an increase in months of inventory mean for Austin Area homebuyers?A: An increase in months of inventory, like the Austin Area’s jump from 5.09 to 7.41 between January and March 2025, means more homes are available compared to demand. With 20 of 30 cities exceeding 6 months by March (up from 8 in January), buyers gain more options and bargaining power, while sellers may see listings sit longer. This data, tracked by Team Price Real Estate, points to a cooling market favoring buyers.

Discover the latest Austin Area housing market trends with detailed inventory data from January and March 2025. Learn how cities like Austin, Marble Falls, and Cedar Park shifted from sellers’ to buyers’ markets, based on Team Price Real Estate’s in-depth report

Austin Area Housing Market Trends: Inventory Changes from January to March 2025

​A Deep Dive into Austin’s Active Housing Market on March 13, 2025Austin’s residential real estate market on March 13, 2025, gives us a clear look at homes currently for sale, based on detailed data from Team Price Real Estate. With 3,643 active listings, we can explore how long these homes have been sitting on the market, how many are available in different price ranges and sizes, and how quickly they’re moving toward contracts. This analysis focuses on active listings only—those still waiting for buyers—offering a snapshot of inventory and demand in one of America’s hottest cities.Let’s begin with the days on the market for these active homes. Across all 3,643 listings, the average time on the market is 83 days, while the median is 42 days. This means half of Austin’s active homes have been listed for 42 days or less, but some have lingered longer, pushing the average higher. For example, homes priced between $600,000 and $700,000 have been active for an average of 75 days and a median of 39 days, while those in the $200,000 to $300,000 range show an average of 95 days and a median of 61 days—the longest of any price group. By size, homes between 1,500 and 1,750 square feet have been on the market for an average of 66 days with a median of 34 days, the shortest median among size ranges. In contrast, tiny homes under 250 square feet average 116 days, indicating they’ve been sitting unsold for nearly four months.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250314010512.png" alt="" width="" height="" style=""></figure></div>​Next, let’s examine the number of active listings available on March 13, 2025. Out of the 3,643 total, the largest share—939 homes, or 25.8%—is priced at $1 million or higher, highlighting a big pool of luxury properties still on the market. The $500,000 to $600,000 range has 541 listings, making up 14.9%, and $400,000 to $500,000 follows with 446 homes, or 12.2%. When it comes to size, homes between 1,000 and 1,250 square feet top the list with 399 listings, or 11%, while those from 1,250 to 1,500 square feet have 393 listings, or 10.8%. Smaller homes are less common, with just 31 listings between 250 and 500 square feet and only one under 250 square feet, showing how rare tiny properties are among active inventory.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250314010705.png" alt="" width="" height="" style=""></figure></div>How much buyer interest are these active homes seeing? The activity index, calculated as the percentage of pending homes out of the total active plus pending pool, sheds light on this. Across price ranges, the $500,000 to $600,000 segment leads with a 37% activity index, meaning 37% of homes in this range are under contract, even as 541 remain active. The $1 million-plus category is close behind at 37.5%, despite its 939 active listings. The $200,000 to $300,000 range, however, shows the lowest activity at 18.8%, with 60 homes still unsold. By size, homes between 2,000 and 2,250 square feet have a 28.5% activity index, while those from 1,250 to 1,500 square feet sit at 23.8%. Smaller homes between 250 and 500 square feet lag at 15.6%, suggesting less buyer movement in that 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/20250314121344.png" alt="" width="" height="" style=""></figure></div>Digging deeper, certain price and size combinations reveal more about these active listings. For homes sized 2,000 to 2,250 square feet in the $500,000 to $600,000 range, there are 58 active listings with a 37% activity index, yet they’ve been on the market an average of 72 days. In the $200,000 to $300,000 range, homes between 500 and 750 square feet have 81 active listings but a mere 4.7% activity index, with an average of 67 days on the market, showing slow interest. Luxury homes over $1 million sized 2,750 to 3,000 square feet have a 39.9% activity index, but with sparse active listings, they’re part of the broader $1 million-plus group averaging 84 days on the market.The interplay of price and size among active listings tells a bigger story. The mid-range, from $400,000 to $700,000, accounts for 39.3% of inventory with 1,430 active homes, including 541 at $500,000 to $600,000 and 443 at $600,000 to $700,000. These homes show activity indexes from 29.6% to 37% and have been active for medians of 39 to 46 days. Homes sized 1,250 to 2,000 square feet, with 1,096 active listings, make up 30% of the total and have median days on the market from 34 to 40 days, paired with activity indexes of 23.2% to 28.5%. At the high end, the 939 active listings over $1 million have a 37.5% activity index but an average of 84 days, suggesting many luxury homes remain unsold longer. The low end, with 60 active homes between $200,000 and $300,000, faces an 18.8% activity index and a 95-day average, indicating these scarce listings aren’t drawing much attention.What does this mean for Austin’s active housing market? The data shows a market where mid-range homes between $400,000 and $700,000 dominate inventory with 1,430 listings and see strong buyer interest, with activity indexes above 29% and medians under 46 days. The luxury segment, with 25.8% of active listings at $1 million or more, maintains a 37.5% activity index, but its 84-day average points to a slower pace for these 939 homes. Smaller, cheaper homes under $300,000, just 1.6% of the total with 60 listings, have been active the longest at 95 days on average and show the weakest activity at 18.8%. Size-wise, the 1,000 to 2,000 square foot range, with 41% of active listings, balances solid activity with shorter median days on the market.Based on Team Price Real Estate’s data from March 13, 2025, Austin’s active residential market reflects a diverse landscape. With 3,643 homes currently listed, an overall average of 83 days on the market, and activity indexes peaking at 37% in key price ranges, the market leans toward strength in its mid and upper tiers. Whether it’s a 1,500-square-foot home active for a median of 34 days or a $1 million-plus property with high buyer interest, Austin’s active listings show a city with plenty of homes still waiting for the right buyer as of mid-March 2025. FAQHow long have homes been on the market in Austin in 2025?As of Marc 13, 2025, active homes in Austin have an average of 83 days on the market and a median of 42 days. Homes sized 1,500 to 1,750 square feet have the shortest median at 34 days, while those under 250 square feet average 116 days.How many active homes are for sale in Austin right now?On March 13, 2025, there are 3,643 active residential listings in Austin. The most are over $1 million (939 homes), followed by $500,000 to $600,000 with 541 listings.What’s the most common price range for active homes in Austin?Among active listings on March 13, 2025, the $500,000 to $600,000 range has 541 homes (14.9% of the total), the largest below $1 million. It also has a 37% activity index, showing buyer interest despite 541 still being unsold.Are luxury homes sitting unsold in Austin in 2025?Luxury homes over $1 million make up 939 active listings (25.8%) as of March 13, 2025, with an average of 84 days on the market. Their 37.5% activity index suggests many are moving toward contracts, but plenty remain available.What size homes are most available in Austin’s active market?On March 13, 2025, active homes between 1,000 and 1,250 square feet lead with 399 listings (11%), followed by 1,250 to 1,500 square feet with 393 (10.8%). These sizes also have median days on market of 34 to 44 days.​

Explore Austin’s active housing market on March 13, 2025, with 3,643 listings, an average of 83 days on the market, and activity rates up to 37%. Dive into detailed data on prices and sizes for homes still for sale

Austin Active Housing Market: Days on Market and Listings for March 2025

Austin’s Real Estate Market: March 3–10, 2025, and Year-to-Date Trends The Austin real estate market is always shifting, and the latest data from March 3 to March 10, 2025, offers a fresh look at how homes are moving in this vibrant Texas city. This weekly update, combined with monthly trends from January to early March 2025, paints a clear picture of where the market stands today. Using data from the “Weekly Residential Update” and “Monthly New Listing to Pending Ratio” provided by Team Price Real Estate, we can see exactly what’s happening with new listings, pending sales, mortgage rates, and more in the Austin area. Let’s start with the most recent week, March 3 to March 10, 2025. During this seven-day period, 1,489 new listings hit the market, including homes that came back on the market after previous deals fell through. Meanwhile, 310 homes went pending, meaning they’re under contract and heading toward closing. This activity resulted in a new listing to pending ratio of 0.50, which is calculated by dividing the total new listings plus back-on-market homes by the sum of active under contract and pending properties. In this case, that’s 1,489 new listings divided by the 851 total homes under contract or pending (541 active under contract plus 310 pending). A ratio this low—well below 1—shows that more homes are entering the market than are being snapped up by buyers, suggesting a slower pace of sales and a buildup of inventory. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250311095841.png" alt="" width="" height="" style=""></figure></div> Looking at other numbers from that week, 177 homes saw price increases, while a much larger group—1,602—experienced price decreases. This indicates sellers are adjusting their expectations, likely to attract more buyers in a market where demand isn’t keeping up with supply. The percentage of homes with price drops hit 90%, a significant figure that reinforces the trend of softening demand. On top of that, 210 homes came back on the market, representing 14% of the new listings, showing that some deals are falling apart before they close. Open houses also remained active, with 2,844 held during the week, giving buyers plenty of chances to explore available properties. The mortgage rate for this period was 6.63%, a slight drop from the 6.76% seen the previous week, which could influence buyer decisions as borrowing costs ease just a bit. Now, let’s zoom out to see how March 2025 is shaping up so far. With only 10 days of data, the monthly new listing to pending ratio stands at 0.55, based on the weekly figures we have. This continues a downward trend from earlier in the year. For comparison, January 2025 had a monthly ratio of 0.69, calculated from weeks where new listings ranged from 629 to 1,042 and pending sales hovered between 405 and 464. February 2025’s ratio was 0.73, with new listings climbing from 1,030 to 1,219 and pending sales staying steady between 455 and 509. The drop to 0.55 in early March suggests that the market is cooling further as the year progresses, with inventory growing faster than buyer activity. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250311095858.png" alt="" width="" height="" style=""></figure></div> Rewinding to the previous week, February 24 to March 3, 2025, we see a similar story. That week brought 1,219 new listings and 453 pending sales, yielding a ratio of 0.70. Price decreases outnumbered increases—1,268 versus 153—and 89% of homes saw their prices cut. The mortgage rate then was 6.76%, a bit higher than the following week, and open houses totaled 2,977, showing strong seller efforts to draw in buyers. The difference between total listings and pending sales was 432, a notable gap that highlights how supply is outpacing demand. Looking back at the full dataset from September 2024 to March 2025, some patterns emerge. New listings peaked at 1,489 in the most recent week, the highest since at least September 16, 2024, when 954 homes were listed. Pending sales, however, hit their lowest point in early March at 310, down from a high of 528 in late January 2025. Mortgage rates have fluctuated, starting at 6.09% in mid-September 2024, climbing to a peak of 7.04% in mid-January 2025, and now settling at 6.63%. This rollercoaster of rates likely plays a role in buyer behavior, with lower rates potentially encouraging more activity, though the data shows demand hasn’t surged yet. The monthly historical data stretching back to 2000 provides even more context. The average new listing to pending ratio for March across all years is around 0.81, but 2025’s early figure of 0.55 is well below that mark. It’s the lowest March ratio since at least 2000, when it was 0.91. This suggests that the Austin market is experiencing an unusually slow start to the spring season, a time when real estate typically picks up. For the year so far, 2025’s average ratio of 0.66 (across January, February, and early March) is also lower than the 2024 full-year average of 0.80, signaling a shift toward a softer market. Inventory changes are another key piece of the puzzle. The “Diff” column, which tracks the difference between total listings and pending sales, hit 848 in the March 3–10 week—the highest since October 2024’s 279. This growing gap shows that homes are stacking up on the market, a trend that’s been building since late 2024, when the difference dipped to a low of -177 in late November. Meanwhile, the percentage of homes back on the market has hovered between 14% and 23% in 2025, with the latest week at 14%, down from a high of 23% in late October 2024. What does all this mean for Austin’s real estate scene? The data from March 3 to March 10, 2025, shows a market where new listings are flooding in, but buyers aren’t keeping pace. Price cuts are widespread, and homes are lingering longer, as seen in the low pending sales numbers. The early March monthly ratio of 0.55 reinforces this, marking a continuation of the softening trend from January and February. Compared to historical norms, this is a slower market than Austin has seen in years, driven by a mix of high inventory, adjusting prices, and mortgage rates that, while slightly down, remain above 6%. As we move deeper into March, these numbers will be worth watching to see if the spring season brings a shift or if this cooling period holds steady. ​

Explore the latest Austin real estate market trends for March 3–10, 2025, and year-to-date insights. Dive into new listings, pending sales, mortgage rates, and the new listing to pending ratio driving the Austin housing scene this month

Austin Real Estate Market Update: March 3–10, 2025 Trends and Insights

​Understanding Austin’s Housing Market Trends and FHA Loan Performance in 2025The housing market in Austin, Texas, has been a rollercoaster over the past two decades, with dramatic shifts in inventory, sales, and market conditions. As of March 8, 2025, data from Team Price Real Estate shows active residential listings at 13,221, a notable increase from 3,630 in March 2022. That’s a jump of 264.2% in just three years. Meanwhile, home sales have taken a dip, with a projected 2,514 homes sold in March 2025, down 19.9% from 3,139 the previous year and a steep 46.0% drop from the peak of 4,660 in June 2021. This shift has pushed the Months of Inventory (MOI)—a measure of how long it would take to sell all homes at the current pace—to 5.1 months, landing the market in neutral territory between a seller’s and buyer’s 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/20250308115137.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="0" data-file-name="image.png" data-file-size="93913" data-origin="," style=""></figure></div> But what’s driving these changes, and why aren’t we seeing a wave of distressed properties like foreclosures despite the cooling demand? To answer that, we need to look at both local trends and national data, including the latest FHA Single Family Loan Performance Trends report from November 2024.Let’s start with Austin’s history. Back in 2006, before the housing bubble burst, active listings sat at 9,445 in March, climbing to a peak of 14,326 by July 2010 as the Great Recession hit. That’s a 51.7% increase over four years, driven largely by foreclosures and distressed sales after sales plummeted 55.0% from 3,341 in June 2006 to 1,503 in March 2009. The MOI soared to 8.7 months in July 2010, signaling a buyer’s market where homes lingered unsold. Fast forward to today, and the numbers tell a different story. Inventory has spiked much faster—up 198.3% year-over-year from March 2022 to March 2023 alone—yet sales declines, while significant, haven’t hit the depths of 2009. So, why isn’t this looking like the last housing correction?<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250308115206.png" alt="" data-rotate="" data-proportion="true" data-rotatex="" data-rotatey="" width="" height="" data-size="," data-align="none" data-percentage="auto,auto" data-index="1" data-file-name="image.png" data-file-size="96714" data-origin="," style=""></figure></div> One big clue comes from the FHA Single Family Loan Performance Trends report, published by the U.S. Department of Housing and Urban Development in December 2024. This report tracks loans insured by the Federal Housing Administration, which are popular among first-time buyers—a key group in Austin’s market. As of November 2024, 7,851,909 FHA loans were active, with a serious delinquency rate (loans 90+ days late, in foreclosure, or bankruptcy) of 4.41%, up from 3.91% a year earlier. That’s a sign of growing financial strain. Breaking it down, 3.60% of loans were 90+ days delinquent, 0.37% were in foreclosure, and 0.44% were in bankruptcy. Despite this, foreclosure starts have stayed steady, dropping slightly from 6,073 in November 2023 to 5,563 in November 2024, with an annualized foreclosure rate of just 0.16%. Loans in foreclosure also fell from 44,042 in March 2023 to 29,402 in November 2024. This stability stands out when compared to the 2008–2010 period, where foreclosures surged and fueled inventory.So, what’s keeping distressed properties at bay? The FHA data offers insight. Programs introduced in recent years help borrowers avoid foreclosure by allowing missed payments to be added to the loan’s principal without interest. For example, a borrower missing five $4,000 payments would see $20,000 tacked onto their loan, and their monthly payment could be cut by $1,000 for three years, adding another $36,000 to the principal—totaling $56,000 in extra debt, interest-free. The FHA paid out 556,841 such “incentive payments” to mortgage servicers in the past year, nearly matching the number of new loans insured. This approach, detailed in a February 23, 2025, Wall Street Journal article by Allysia Finley titled “Biden’s Mortgage ‘Relief’ Fuels Higher Housing Prices,” keeps homes off the foreclosure market, even as 7.05% of FHA loans from 2023 went seriously delinquent within 12 months—higher than the 7.02% peak in 2008.Looking closer at FHA borrowers, the risk profile has grown. In 2007, 35% of new FHA borrowers had debt-to-income (DTI) ratios above 43%; by 2020, that rose to 54%, and last year, it hit 64%. About 79% of first-time FHA buyers in 2024 had less than a month’s worth of financial reserves, according to estimates from the American Enterprise Institute’s Ed Pinto and Tobias Peter, cited in the Wall Street Journal piece. Table 3 from the FHA report backs this up: loans to borrowers with credit scores below 620 have serious delinquency rates as high as 8.41%, compared to 1.32% for those above 720. Loans from the 2019 cohort show a 7.50% serious delinquency rate, while newer 2024 loans are at 1.72%. Despite this risk, foreclosure remains rare, thanks to these relief programs.In Austin, this national trend likely plays a role. The city’s inventory jumped to 16,179 in June 2024 before easing to 13,221 by March 2025—a 18.3% drop from the peak but still far above the 3,630 low in March 2022. Sales, meanwhile, have cooled from 3,636 in March 2022 to 2,514 projected for March 2025. Yet, unlike 2008–2010, when foreclosures drove inventory up and MOI hit buyer’s market levels, today’s MOI of 5.1 suggests balance, not distress. The FHA report’s Table 5 shows Texas REO recovery rates at 61.3% in October 2024, down from 74.7% a year earlier, but with only 41 dispositions, it’s a small piece of the puzzle. Table 6 reveals net loss rates on foreclosed properties at 30.18% in November 2024, with an average loss of $39,290 per property—manageable figures that don’t signal a flood of distressed sales.Comparing the two periods highlights the contrast. From 2006 to 2010, inventory grew gradually as sales crashed, with foreclosures pushing MOI to 8.7. Today, inventory soared quickly—264.2% from March 2022 to March 2025—while sales dropped 46.0% from their peak. But the FHA’s foreclosure rate of 0.37% and declining in-foreclosure loans (29,402 in Nov 2024) show no parallel to the 2008–2010 distress wave. The Wall Street Journal notes that servicers are incentivized to keep borrowers in homes, earning $1,750 per intervention, which could explain why Austin’s inventory rise stems from market cooling—like higher interest rates—rather than foreclosures.The FHA data also sheds light on who’s struggling. Purchase loans (72.24% of FHA’s portfolio) have a 4.99% serious delinquency rate, while first-time buyers (85.22% of purchase loans) face 5.16%, compared to 3.96% for repeat buyers. Loans with down payment assistance from relatives or sellers show rates up to 8.11%. Yet, foreclosure starts hover around 6,000 monthly, and claims paid by HUD for completed foreclosures are steady at 1,039 in November 2024. This suggests that while borrowers are stretched, relief measures are holding the line—keeping Austin’s market from tipping into a 2008-style crisis.So, what does this mean for Austin in 2025? The data paints a picture of a market adjusting after a boom, with inventory up and sales down, but not collapsing under distress. The FHA’s 4.41% serious delinquency rate and stable foreclosure stats signal pressure, but not a breaking point. Unlike 2006–2010, when foreclosures defined the correction, today’s policies are cushioning the fall. For now, Austin’s housing market—and the broader FHA portfolio—seems to be navigating a slowdown, not a crash, thanks to a safety net that wasn’t there last time. FAQ SectionWhat is the housing market like in Austin in 2025?As of March 2025, Austin’s housing market has 13,221 active listings, up 264.2% from 3,630 in March 2022, according to Team Price Real Estate. Sales are projected at 2,514 for March, down 19.9% from 3,139 in 2024, with an MOI of 5.1 months, indicating a balanced market between buyers and sellers.How do FHA loans affect the housing market?FHA loans, tracked in the November 2024 FHA Single Family Loan Performance Trends report, support first-time buyers (85.22% of purchase loans) but show a 4.41% serious delinquency rate. Relief programs adding missed payments to principal without interest (e.g., $56,000 per case) prevent foreclosures, stabilizing markets like Austin’s by keeping distressed homes off the market.Why aren’t there more foreclosures in 2025?The FHA report shows foreclosure starts steady at 5,563 in November 2024, with a 0.16% annualized rate. Programs paying servicers (556,841 payments last year) to defer payments to loan principal, as noted in the Wall Street Journal (Feb 23, 2025), reduce foreclosures despite a 7.05% delinquency rate for 2023 FHA loans.How does the 2025 housing market compare to 2008?Austin’s inventory rose 264.2% from 2022 to 2025, far outpacing the 51.7% increase from 2006 to 2010. Sales dropped 46.0% from 2021 to 2025, less than the 55.0% fall from 2006 to 2009. Unlike 2008–2010, when foreclosures drove MOI to 8.7, FHA policies keep today’s distress low, with MOI at 5.1.What are Months of Inventory, and why do they matter?Months of Inventory (MOI) measures how long it takes to sell all active listings at the current sales pace. Austin’s MOI is 5.1 in March 2025, per Team Price data, meaning it’s neutral (5–7 months). Below 5 favors sellers; above 7 favors buyers. It’s a key indicator of market health and balance.Credits : Data in this article is sourced from Team Price Real Estate (last revised March 8, 2025), the FHA Single Family Loan Performance Trends report (November 2024, published December 2024 by HUD), and “<a target="_blank" href="https://www.wsj.com/opinion/bidens-mortgage-relief-fuels-higher-housing-prices-policy-loans-risk-cb0a1974">Biden’s Mortgage ‘Relief’ Fuels Higher Housing Prices</a>” by Allysia Finley, Wall Street Journal, February 23, 2025. The FHA report is embedded below for reference.
 
 
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Explore Austin’s 2025 housing market with detailed data on inventory, sales, and FHA loan performance. Learn why rising inventory and falling sales haven’t led to distressed properties, compared to the 2008–2010 correction

Austin Housing Market Trends 2025: Inventory, Sales, and FHA Loan Insights

Austin Residential Income Property Market: A Data-Driven Analysis The Austin real estate market for residential income properties, including duplexes, triplexes, and fourplexes, has shown significant trends based on recent data. With 243 active listings, 54 pending sales, and 19 closed transactions over the past 30 days, understanding the market dynamics can help investors and sellers make informed decisions.Residential income properties provide multiple rental units within a single structure, making them attractive for both investors and owner-occupants. A duplex consists of two separate units, typically offering a cost-effective entry into real estate investment. A triplex expands the opportunity with three units, allowing for more rental income while maintaining residential zoning benefits. A fourplex provides the highest density among these property types, maximizing cash flow potential while remaining within the scope of conventional financing options.One of the key metrics used to assess market activity is the Activity Index, which is calculated by dividing the number of pending listings by the total number of active and pending properties. In Austin, the current Activity Index stands at 18.18%, derived from 54 pending listings out of a combined total of 297 active and pending properties. A lower Activity Index indicates a slower-moving market where fewer properties are transitioning to pending status. This suggests that supply currently outweighs demand, potentially giving buyers more negotiating power.Another crucial indicator is the Months of Inventory, which measures how long it would take to sell all active listings at the current sales pace. The formula for this metric divides active listings by the number of closed sales in the past 30 days. With 243 active properties and 19 sales, Austin’s residential income property market has approximately 12.79 months of inventory. This figure is well above the threshold for a balanced market, typically around 4 to 6 months, indicating a buyer's market where inventory levels exceed demand.Price trends further reinforce these market conditions. The median list price of active properties is $598,000, with an average price per square foot at $292. Pending listings, on the other hand, show a median price of $525,000, reflecting the fact that more competitively priced properties are attracting buyers. Closed sales over the past 30 days had a median price of $467,000, with an average price per square foot of $233. Additionally, the average closing price was 92.79% of the original list price, confirming that many properties are selling below their initial asking price. Sellers may need to adjust their expectations to align with market realities.The time on market also highlights a trend of extended selling periods. Active properties have been listed for an average of 129 days, while pending sales show a significantly shorter average of 59 days, indicating that well-priced properties move faster. Closed sales had an average of 63 days on market, showing that properties that do sell do so within a reasonable timeframe once they reach the right price point. <div class="se-component se-image-container __se__float-center"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305080858.png" alt="" width="" height="" style=""></figure></div> For investors, the current market presents an opportunity to secure properties at more favorable terms, as high inventory levels suggest that sellers may be open to price reductions or incentives. Conversely, sellers need to consider pricing strategies carefully, as overpricing may lead to prolonged market exposure. The data suggests that properties listed below the median price are more likely to attract buyers and move to closing faster.The Austin residential income property market is currently characterized by high inventory, longer selling times, and declining sales prices. These trends create an environment where buyers have an advantage, while sellers must adapt to competitive pricing strategies to secure deals. As economic conditions evolve, monitoring key indicators like the Activity Index and Months of Inventory will be essential for making data-driven real estate decisions.​ FAQ Section 1. Is Austin a good market for investing in duplexes, triplexes, and fourplexes? Austin’s residential income property market currently favors buyers due to high inventory and declining prices. Investors can find opportunities to purchase properties at competitive prices, but understanding market trends is essential to making profitable decisions. 2. How do you calculate the Activity Index and why does it matter? The Activity Index is calculated by dividing pending listings by the sum of active and pending listings. It helps measure market demand, with a higher percentage indicating stronger buyer activity. In Austin, the current Activity Index of 18.18% suggests a slow-moving market. 3. What does Months of Inventory tell us about the Austin market? Months of Inventory measures how long it would take to sell all active listings at the current sales pace. Austin’s market currently has 12.79 months of inventory, indicating an oversupply of residential income properties, which gives buyers more leverage in negotiations.

Explore the latest data on Austin’s residential income property market, including duplexes, triplexes, and fourplexes. With insights into inventory levels, pricing trends, and market activity, this article provides a data-driven analysis for investors and sellers

Austin Residential Income Property Market: 2024 Data & Trends

Austin Rental Market Trends: Are Rent Prices Falling in 2025? The Austin-Round Rock-Georgetown rental market is experiencing a shift in 2025, with rising vacancies and declining rent prices affecting both two-bedroom apartments and single-family rental homes. With data showing rental price adjustments across multifamily and single-family properties, this analysis explores how these trends impact renters and landlords alike. Are Rent Prices Going Down in Austin?&nbsp;Recent data indicates that rent prices in the Austin metro area have been gradually decreasing since mid-2023. Two-bedroom apartments, which saw peak pricing in mid-2022 at $1,725 per month, have dropped by approximately 17% to $1,426 by February 2025. The decline reflects a growing vacancy rate, now at 9.85%, compared to 3.97% in September 2021, when competition for rentals was at an all-time high.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305063351.png" alt="" width="" height="" style=""></figure></div>Residential lease properties, primarily single-family homes, show a similar trend. The median lease price in February 2025 is $2,100, down 4.1% from the previous year. Compared to its peak in August 2022, when median lease prices were at $2,568, the market has adjusted by roughly 18.2%. The decline in rental demand and an increase in available properties contribute to this shift, offering renters more negotiating power than in previous years.Comparing Multifamily vs. Single-Family Rental MarketsMultifamily properties, such as apartments, are seeing faster adjustments in pricing and vacancy rates. The vacancy rate for two-bedroom apartments climbed from 3.97% in late 2021 to 9.85% in early 2025, illustrating a market correction following the post-pandemic rental surge. As a result, landlords are adjusting pricing strategies, with apartment rent reductions averaging 2% year-over-year.In contrast, single-family rental properties maintain higher price stability but are not immune to market forces. The number of leased properties has decreased from 2,243 in February 2024 to 1,967 in February 2025, a 12.3% year-over-year decline. While rental price drops in single-family homes have been moderate compared to multifamily units, landlords in this segment are beginning to offer concessions such as lower security deposits or move-in incentives to attract tenants.<div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305063434.png" alt="" width="" height="" style=""></figure></div>Market Outlook: What’s Next for Renters and Landlords?The increase in available rental units and declining prices suggest that the market is moving toward a more tenant-friendly environment. Factors influencing this shift include new apartment constructions adding to supply, economic conditions affecting tenant affordability, and shifting migration patterns. Renters looking for new leases in 2025 will find more options and better negotiating leverage than in previous years.For landlords, the rising vacancies pose challenges in maintaining occupancy rates, particularly for multifamily properties. Those renting single-family homes may still benefit from relatively stable pricing but should be prepared for longer listing times and potential rent concessions to secure tenants.Frequently Asked Questions (FAQs)1. Why are Austin rent prices going down?&nbsp;Austin rent prices are declining due to increased vacancy rates, more new apartment developments entering the market, and economic factors reducing tenant demand. The oversupply of rentals allows renters to negotiate lower prices.2. Is it cheaper to rent an apartment or a single-family home in Austin?&nbsp;Apartments tend to be more affordable, with a median rent of $1,426 for a two-bedroom unit, whereas single-family homes average around $2,100 per month. However, single-family homes offer more space and amenities, making them preferable for larger households.3. Will Austin rent prices continue to drop in 2025?&nbsp;While rent prices have declined, the extent of further reductions will depend on supply levels and economic conditions. If vacancy rates remain high, landlords may continue lowering rents or offering incentives to attract tenants.&nbsp;

Austin's rental market is shifting in 2025, with rent prices declining for both apartments and single-family homes. Vacancy rates are rising, giving renters more options and negotiating power. Explore the latest trends in rent prices and market conditions

Austin Rental Market 2025: Are Rent Prices Dropping?

A Deep Dive into the U.S. and Austin Housing Markets in March 2025The housing market across the United States in March 2025 reveals a sluggish yet shifting landscape, with nationwide data indicating distress and regional variations highlighting stark differences. Zooming into Austin, Texas, detailed local data from <a href="https://teamprice.com/">Team Price Real Estate</a> provides a granular look at how this key metro area aligns—or diverges—from national trends. By weaving together national statistics with Austin-specific figures, we can better understand the housing market dynamics as of March 4, 2025.Nationally, the median sales price for homes stands at $377,000, reflecting a 4% increase year-over-year based on a four-week rolling average. This uptick masks a growing divide: upper-end homes are driving much of the growth, while lower-end properties lag behind. Active listings nationwide have climbed to 976,659, up 9.68% from last year, marking a four-year high. However, this growth is slow, and reaching the 1 million mark could signal a healthier market. In Austin, inventory trends align, with <a href="https://teamprice.com/active-residential-listings">active residential listings</a> reaching 12,193 on March 4, 2025—a 16.9% jump from 10,428 in 2024. This increase suggests more homes are available, though it remains below the previous high of 15,503 seen on July 15, 2024, indicating a cautious buildup rather than a flood of supply.Days on market (DOM) nationally averages 56.2 days, up 7.5 days from last year—another four-year high. This longer time on the market points to homes sitting unsold, often leading to price reductions. In Austin, the median DOM across various zip codes varies widely, averaging around 50 days in central areas like 78701 and climbing to 115 days in outlying zones like 78612 (Cedar Creek). Local data supports the national observation that properties are taking longer to sell, with 35.5% to 62.5% of homes in Austin zip codes lingering 100 days or more, depending on the area.Price cuts are a critical measure nationally, with 6% of listings seeing reductions—an increase of 1.2% year-over-year and a four-year peak. This trend surpasses typical seasonal patterns and hints at seller urgency. Austin mirrors this, with 42.6% of active listings citywide experiencing price drops as of March 4, 2025. In specific zip codes, like 78747, that figure spikes to 57%, while in 78757, it’s lower at 34.9%. These reductions reflect sellers cashing in equity or struggling to maintain ownership amid high costs, aligning with national patterns.<a href="https://teamprice.com/active-residential-listings">New listings</a> nationwide stand at 81,500, up 2.4% from last year, though still historically low compared to pre-pandemic levels. Zillow estimates that 78% of these listings come from distressed sellers, a figure that could foreshadow a crash if new listings surge. Austin’s new construction segment, comprising 30.5% of active listings (3,719 homes), shows similar distress, with 56% of new homes in zip code 78628 (Georgetown) seeing price drops. Resale properties dominate at 69.5% (8,474 homes), with an average list price of $766,470, reflecting a robust but softening market.Pending sales nationally have dropped to 73,400—a 6.2% decline year-over-year—indicating a deeply depressed transaction volume. In Austin, pending listings stand at 4,062 on March 4, 2025, down 8.7% from 4,449 in 2024, reinforcing the national slowdown. The activity index—a measure of pending sales relative to total listings—sits at 25.0% in Austin, down 16.4% from 29.9% last year, further highlighting a cooling market.<a href="https://teamprice.com/30-year-fixed-mortgage-rate">Mortgage interest rates</a>, a major driver of affordability, are at 6.78% for a 30-year conventional loan nationwide, the lowest since November 2024. This rate tracks the 10-year Treasury yield, impacting affordability. For a $377,000 loan, the monthly payment is $2,452 (excluding taxes and insurance). In Austin, the median sold price was $427,250 in February 2025, down 2.8% year-over-year, suggesting that even with lower rates, high prices continue to strain buyers.Austin stands out as the worst-performing market nationally, with a peak price of $574,000 in April 2022 dropping to $429,000 by March 2025—a 25.2% decline. Local data shows 641 homes sold in February 2025, a 16% year-over-year drop from 765. In contrast, Milwaukee, the top performer, boasts an 11% price increase to $311,000. Austin’s months of inventory now stand at 4.28 (up 17.9% from 3.63 in 2024), indicating a market tilting toward buyers but not yet balanced. Our data on the Median Sold Price from Peak displays a slightly different number but still down significantly.&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/20250305010622.png" alt="" width="" height="" style=""></figure></div>Nationally, a bifurcated market emerges where top regions thrive on low inventory while bottom ones, like Austin, face steep declines. Zillow’s 78% distressed seller statistic underscores underlying stress, though new listings haven’t spiked yet. In Austin, special listing conditions like short sales (0.36% of active listings) and pre-foreclosures (0.10%) remain minimal but signal pockets of financial strain. The trajectory of price cuts and DOM suggests growing seller distress, potentially setting the stage for broader price drops if inventory accelerates.Market conditions nationwide show prolonged DOM, rising price cuts, and low transaction volume, with inventory growing but not fast enough to shift dynamics significantly. Austin reflects this, with sales declining across most zip codes—down 53% in 78748 and 51% in 78744—while a few, like 78725 (up 125%), buck the trend. Prices remain elevated nationally at $377,000 and locally at $429,000, but high interest rates and softening demand make renting cheaper than owning in many cases.For buyers, using data over emotions is key, focusing on subdivision analysis with comparable sales. In Austin, average sold prices range from $234,000 in foreclosure-heavy areas (like zip code 76550) to $1,193,146 for “to be built” homes. An extra $250 monthly payment on a $377,000 loan saves $138,626 in interest, offering buyers a strategy to mitigate high rates.In summary, the U.S. housing market in March 2025 navigates a slow grind, with Austin exemplifying the challenges of a once-hot market cooling off. National data reveals a strained yet resilient system, while Austin’s numbers—12,193 active listings, 4,062 pending, and a 25.2% price drop from its peak—underscore a local market adjusting to new realities. As inventory creeps up and sales falter, both national and Austin trends suggest a pivotal moment for housing in 2025.&nbsp; 1. What is the current state of the U.S. housing market in 2025?As of March 4, 2025, the median sales price is $377,000, up 4% year-over-year, with 976,659 active listings (up 9.68%) and 73,400 pending sales (down 6.2%). Homes average 56.2 days on market, and 6% of listings face price cuts, indicating a slow, distressed market.2. How has the Austin housing market changed in 2025?Austin’s median price dropped 25.2% from $574,000 in April 2022 to $429,000 by March 2025. Active listings hit 12,193 (up 16.9%), pending sales fell to 4,062 (down 8.7%), and 641 homes sold in February 2025 (down 16%), with 42.6% of listings seeing price cuts.3. Are home prices going down in 2025?Nationally, prices rose 4% to $377,000, driven by upper-end homes. In Austin, prices fell 25.2% to $429,000, with 42.6% of listings reduced. While national prices hold, regional declines like Austin’s suggest softening in specific markets.

Explore the U.S. housing market in March 2025 with nationwide stats and a deep dive into Austin’s local trends. From median prices to days on market, get the latest data-driven insights into active listings, pending sales, and more

2025 Housing Market Update: National Stats and Austin Data Breakdown

Exploring Residential Real Estate Trends for Pending Properties in March 2025The residential real estate market in March 2025 offers a fascinating snapshot of homes listed as "Active Under Contract" and "Pending" across a dataset of 4,042 properties. This data, gathered from the Multiple Listing Service (MLS), reveals key details about property sizes, prices, and days on the market, providing a clear picture of what’s happening in the housing world right now. Whether you're a curious homeowner, a potential buyer, or just someone interested in real estate stats, this information breaks down the numbers in a way that’s easy to grasp and packed with specifics. <div class="se-component se-image-container __se__float-none"><figure><img src="https://closehack-backblaze.s3.us-west-004.backblazeb2.com/agent_richtext/20250305125155.png" alt="" width="" height="" style=""></figure></div>​ Let’s start with the 1,722 properties marked as "Active Under Contract." These homes are in the process of being sold but haven’t finalized yet. The smallest home in this group has just 390 square feet, while the largest stretches to an impressive 11,998 square feet. On average, these properties measure 2,152 square feet, with a median size of 1,914 square feet, showing that most homes fall around this middle range. Bedrooms and bathrooms tell a similar story: the minimum is unspecified, but the maximum reaches 12 bedrooms and 10 bathrooms, while the average home has 3 bedrooms and 3 bathrooms, with a median of 3 bedrooms and 2 bathrooms. Lot sizes vary widely too, from tiny plots to massive ones covering 2,687,652 square feet, though the average lot is 32,049 square feet, and the median is a more modest 8,296 square feet—or about 0.19 acres.Pricing for these "Active Under Contract" homes is just as diverse. List prices range from a low of $66,000 to a high of $9,999,000, with an average of $638,552 and a median of $450,000. When you break it down by price per square foot, the range spans $59.75 to $2,019.35, averaging $285.40 and hitting a median of $237.22. The time these homes spend on the market, measured as Active Days on Market (ADOM), also varies: the longest is 748 days, the average is 76 days, and the median is 39 days. This suggests that while some properties linger, most move relatively quickly.Switching gears to the 2,320 homes listed as "Pending," these properties have offers accepted and are closer to closing. Here, the smallest home is 405 square feet, and the largest tops out at 8,136 square feet. The average size is 2,187 square feet, with a median of 2,035 square feet—slightly larger than the "Active Under Contract" group. Bedrooms range up to 12 and bathrooms up to 9, with averages of 4 bedrooms and 3 bathrooms, and medians of 4 bedrooms and 3 bathrooms. Lot sizes in this category are striking, with one property sitting on an enormous 420,092,640 square feet (over 9,644 acres), though the average is 204,184 square feet, and the median drops to 6,767 square feet, or roughly 0.155 acres.For "Pending" homes, list prices start at $49,900 and climb to $7,900,000. The average list price is $522,518, and the median is $410,299—lower than the "Active Under Contract" group, hinting at different market segments. Price per square foot ranges from $17.74 to $2,038.79, with an average of $236.65 and a median of $208.24, showing a tighter spread than the other category. Days on the market here range up to 823 days, with an average of 83 days and a median of 54 days, indicating that "Pending" homes tend to take a bit longer to reach this stage compared to their "Active Under Contract" counterparts.When you combine all 4,042 properties—both "Active Under Contract" and "Pending"—the trends become even clearer. The smallest home is 390 square feet, and the largest is 11,998 square feet, with an average of 2,172 square feet and a median of 1,997 square feet. Bedrooms max out at 12 and bathrooms at 10, averaging 4 bedrooms and 3 bathrooms, with a median of 3 bedrooms and 3 bathrooms. Lot sizes span from nearly zero to 420,092,640 square feet, averaging 130,850 square feet and a median of 7,362 square feet (about 0.169 acres). List prices range from $49,900 to $9,999,000, with an average of $571,952 and a median of $424,992. Price per square foot stretches from $17.74 to $2,038.79, averaging $257.41 and hitting a median of $218.18. Finally, ADOM ranges up to 823 days, with an average of 80 days and a median of 47 days.This data paints a detailed picture of the residential real estate landscape as of March 4, 2025. Homes vary widely in size, price, and time on the market, but averages and medians show a market centered around moderately sized homes with list prices in the mid-$400,000s to high-$500,000s. Whether a home is "Active Under Contract" or "Pending," these stats offer a window into what buyers and sellers are navigating right now, reflecting a dynamic and varied 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/20250305125249.png" alt="" width="" height="" style=""></figure></div>​

Discover the latest residential real estate trends for March 2025, with detailed MLS data on home sizes, list prices, and days on market for 4,042 properties. Explore averages, medians, and ranges for 'Active Under Contract' and 'Pending' homes

March 2025 Pending Real Estate Report: Prices, Sizes, and Days on Market

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

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2025 : Monday Touch Point

Explore 2025 Monday Touch Point updates from Team Price Real Estate. Weekly Austin real estate insights, trends, and forecasts—watch every meeting here!

2025 Monday Touch Point: Austin Real Estate Market Updates

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