Austin Housing Market Update – May 2025: Home Prices, Inventory & Trends

What’s happening with home prices in Austin, Texas right now? Are we in a buyer’s or seller’s market in May 2025?

If you're considering buying or selling in Austin, Texas, staying up to date with the latest housing market trends is key to making smart real estate decisions. As your trusted Austin, Texas, Realtor, I’m breaking down the numbers from the May 2025 Unlock MLS report to help you navigate the current landscape with confidence.

Let’s dive into the current state of the Austin housing market, including home prices, inventory levels, days on market, and buyer demand.

Key Takeaways: Austin Real Estate Market – May 2025

• Median Home Price: $600,000 (↑ $5,000 from April, ↓ 1.2% YoY)

• Average Price per SqFt: $359 (↓ 3.6% YoY)

• Total Sales: 969 homes sold (↓ 11.1% YoY)

• Inventory: 5.64 months of supply

• Median Days on Market (DOM): 21 days (↑ 3 days YoY)

• % Sold Under Asking: -2.65%

• List-to-Close Ratio: 94.8%

• Price Reductions: 53% of active listings saw a price drop, with an average cut of 8%

Are Home Prices Falling in Austin?

The median sale price in May 2025 for Austin real estate was $600,000, representing a slight month-over-month increase from $595,000 in April. However, compared to May 2024, that’s a 1.2% year-over-year decline.

While we’re not seeing drastic drops, this flattening suggests that Austin Texas home prices are stabilizing after the post-pandemic highs, offering more opportunities for buyers to negotiate—especially in higher price brackets where discounts are more common.

Average home prices are still strong at over $800,000, but much of this is driven by luxury inventory and new construction rather than core single-family resales.

Inventory Rising: What It Means for Buyers and Sellers

Austin now has 5.64 months of housing supply, up significantly from early 2024. In real estate terms, anything over 6 months begins to favor buyers. While we’re just under that threshold, the shift is already changing how homes are priced and how long they sit on the market.

• New Listings in May: 2,185 (↑ 7.9% YoY)

• Pending Contracts: 1,706 (↑ 22.4% YoY)

Buyers are becoming more active again as more options become available. However, over half of listings (53%) are experiencing price reductions, signaling overpricing is still an issue for many sellers.

👉 If you're selling a home in Austin Texas, strategic pricing is more critical than ever.

Homes Are Sitting Longer… Slightly

The median days on market for May was 21 days, which is up from 18 days a year ago. The average DOM is now 45 days, showing some homes—especially those that are overpriced or less updated—are taking longer to sell.

By price point, higher-end homes (above $1.2M) are taking the longest to move, with DOM exceeding 28–30 days on average.

How Much Are Homes Selling For?

Across the board, homes in Austin Texas are selling for about 2.65% below asking price on average, and the list-to-close ratio sits at 94.8%. That means buyers are successfully negotiating and getting deals—especially in the $800,000+ range.

Here’s a breakdown of median days on market by price range:

👉 If you're a buyer looking in the mid-to-luxury range, now may be the right time to negotiate a favorable deal.

What’s Fueling These Trends?

Several factors are shaping today’s Austin real estate market:

• Seasonal Spring Surge: More listings traditionally hit the market in spring. May’s 2,185 new listings reflect that seasonal boost.

• Interest Rates Holding Steady: With no major drop in rates yet, buyer urgency remains tempered—but stable.

• Shift to Buyer-Centric Pricing: High price sensitivity means homes must be priced competitively or risk sitting on the market and facing reductions.

Year-to-Date Austin Market Overview

Through the first five months of 2025:

• Total Homes Sold: 3,975 (↓ 9.4% YTD)

• Total Volume: $3.07B (↓ 6.6% YTD)

• Median Sale Price: $580,000 (↑ 2.3% YTD)

• Price per SqFt: $355.32 (↓ 2.0% YTD)

While volume is down, prices have remained relatively stable overall, pointing to a cooling but not collapsing market.

What This Means for You

For Buyers:

• You have more options and more negotiating power—especially above $600K.

• Interest rates are still a key factor, so it’s wise to get pre-approved and lock in early.

• Many sellers are open to concessions or price cuts if your offer is clean and realistic.

For Sellers:

• Pricing is everything. The days of bidding wars are over.

• Homes that are clean, staged, and competitively priced are still selling fast—often under 3 weeks.

• Avoid price drops by setting a realistic list price from day one.

Local Insight from Colt Yancey, Austin Texas Realtor

As a full-time Austin Texas real estate agent with Teamly Realty, I’m seeing this shift firsthand across neighborhoods like North Austin, Cedar Park, South Austin, and Round Rock. Whether you’re buying your first home or preparing to list, I offer hyperlocal insight to help you navigate this changing market with clarity and confidence.

FAQ: Austin Real Estate – May 2025

Is now a good time to buy a house in Austin, Texas?
Yes, especially for buyers looking in the $500K–$900K range. You’ll find more listings, room to negotiate, and slower price growth.

Are home prices in Austin dropping?
Prices are slightly down year-over-year (1.2%) but remain stable. Most of the movement is in higher price brackets, not entry-level homes.

How competitive is the Austin housing market right now?
Less competitive than last year. Buyers are paying ~2.65% under list price, and DOM is rising slightly.

What’s the average price per square foot in Austin right now?
The average is $359 per square foot, down about 3.6% from last year.

How long are homes sitting on the market in Austin?
The median is 21 days, but homes above $1M often take closer to 30 days or more.

Final Thoughts

The Austin housing market in May 2025 is entering a more balanced phase. Inventory is growing, prices are leveling, and both buyers and sellers are having to be more strategic.

If you’re thinking about making a move—whether buying or selling—reach out today. I’d be honored to help you navigate the next step.

This content is provided for general informational purposes only and should not be considered legal, financial, tax, or investment advice. I am not an attorney, accountant, or financial advisor. Real estate laws and market conditions vary by location and are subject to change without notice. All information should be independently verified. Always consult with a licensed attorney, tax professional, or financial advisor for guidance specific to your situation.