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

How is the Austin, Texas housing market shifting this spring?

If you're preparing to buy or sell a home in Austin, Texas, this spring, it's important to understand how the local market is evolving. As of March 2025, the Austin housing market is showing signs of rebalancing. Whether you're exploring your first home purchase, transitioning from your current home, or expanding your investment portfolio, having accurate data on pricing, buyer activity, and inventory trends is key to making informed decisions.

As a local Austin Realtor with Teamly Realty, I’m breaking down the latest March 2025 stats so you know what to expect.

Key Takeaways from March 2025

• Median home price: $591,590 ↑ 5.6% year-over-year

• Average price per square foot: $361 ↑ 0.4% year-over-year

• Number of homes sold: 783 ↓ 16.8% from March 2024

• New listings: 2,129 ↑ 17.2% year-over-year

• Pending contracts: 1,001 ↓ 5.4% year-over-year

• Median days on market: 29 days ↑ 1 day from last year

• Average days on market: 66 days

• Months of supply: 5.28 months (approaching a balanced market)

Home Prices in Austin: Gradual Gains with Seasonal Lift

The median home price in Austin reached $591,590 in March 2025, reflecting a 5.6% increase year-over-year. While growth has slowed compared to the rapid acceleration seen in 2021–2022, it still indicates a healthy and stable market. The average price per square foot rose to $361, a modest 0.4% increase.

This continued upward pressure on prices is being driven by seasonal demand, increased inventory, and buyers adjusting to current interest rates.

Buyer Activity: Measured but Motivated

Pending sales were down 5.4%, and closed transactions fell 16.8% compared to March 2024—reflecting affordability concerns and higher interest rates. However, motivated buyers remain active, especially in areas offering pricing flexibility or near major employment centers.

Inventory Expands: More Options for Buyers

Inventory increased significantly, with 2,129 new listings hitting the market in March—a 17.2% jump year-over-year. The median days on market is now 29, indicating buyers are taking slightly more time before submitting offers.

With 5.28 months of housing supply, the Austin market is approaching the six-month threshold typically considered a balanced market between buyers and sellers.

What Buyers Should Know This Spring

If you’re considering a home purchase in Austin:

• You’ll have more property options, especially between $400K–$700K.

• Price negotiations are more common, with homes selling for an average of 2.5% below asking.

• Securing pre-approval from a local lender early in your search remains a smart strategy.

Neighborhoods with proximity to major business hubs—such as The Domain, North Burnet, and East Austin—remain in demand for their convenience and amenities.

What Sellers Should Know This Spring

If you're planning to list your home:

• Accurate pricing is essential—buyers are analyzing value closely.

• Homes that are professionally staged, well-marketed, and move-in ready continue to perform well.

• If your home remains on the market longer than 30 days, it may be time to reassess pricing or marketing strategy.

Expert Insight from Colt Yancey, Austin Realtor

“We’re in a shifting market—not crashing, just rebalancing,” says Colt Yancey, Realtor with Teamly Realty in Austin, Texas. “Buyers are still out there, but they’re more selective. Sellers who are realistic and prepared are still seeing great results.”

What to Expect This Spring

• Moderate home price growth is expected to continue.

• Inventory will likely remain higher than in recent years, offering more leverage to buyers.

• Interest rates may fluctuate, but aren’t forecasted to drop significantly.

• Homes in strategic locations and priced appropriately will continue to move quickly.

Final Thoughts

The Austin housing market in March 2025 presents opportunities for both buyers and sellers. Whether you're planning a move or looking to invest, having a strategic approach matters. Colt Yancey, Realtor with Teamly Realty, is here to help guide you with market insight and local expertise.

Reach out today to explore your options based on your specific timeline and goals.

FAQ: March 2025 Austin Housing Market

Is now a good time to buy in Austin, Texas?
Yes—inventory is up, competition is manageable, and price growth is steady.

What are home prices like in Austin this spring?
The median home price is $591,590, with average sales closing 2.5% under list price.

How competitive is the Austin market in March 2025?
It's becoming more balanced, with more time for buyers to shop and negotiate.

How long are homes staying on the market?
The median is 29 days, while the average is 66 days, showing varied buyer timelines.

Are home prices in Austin rising or falling?
Prices are trending slightly upward, with steady, seasonal appreciation.

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.