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

How is the real estate market shifting in Austin, Texas this summer? Are prices falling or stabilizing?

The July 2025 data is in, and the Austin-Round Rock-San Marcos MSA is reflecting a market still in correction mode, with rising inventory and increased days on market, yet strong pending sales showing buyers are still very much in the game.

Here’s a breakdown of what homebuyers and sellers need to know about the latest market conditions, based on data from Unlock MLS.

Key Stats: July 2025 Housing Market

• Median Sales Price: $435,000 (down 3.3% YoY)

• Closed Sales: 2,492 (down 7.9% YoY)

• Sales Volume: $1.44 billion (down 7.3% YoY)

• Months of Inventory: 6.1 months (up 0.9 months YoY)

• New Listings: 4,308 (up 13.4% YoY)

• Active Listings: 15,002 (up 15.9% YoY)

• Pending Sales: 2,829 (up 15.3% YoY)

• Average Days on Market: 60 days (up 3 days YoY)

• Average Close-to-List Price: 93.1% (down from 94.2% YoY)

Prices Continue to Normalize

The median sales price for July 2025 was $435,000, a 3.3% decline year-over-year. This price movement is consistent with broader regional trends as the market continues to correct from the rapid growth of 2020–2022.

While prices are down, the market is far from distressed. Instead, buyers now have more leverage and are taking more time before making decisions, contributing to longer days on market and a higher inventory count.

Buyer Activity Is Picking Up Despite Market Shift

One of the most telling trends this month is the 15.3% increase in pending sales year-over-year. That’s a clear sign that buyer confidence remains steady, especially as more listings come online and pricing becomes more realistic.

With 4,308 new listings hitting the market (up 13.4%), buyers are finding more choices than they’ve had in the past two years. If you’re planning to buy a home in Austin Texas, this is one of the most flexible markets we've seen in recent memory.

Inventory Reaches Balanced Market Threshold

The Austin-Round Rock area now has 6.1 months of inventory—a clear sign that we’ve entered a balanced market for the first time in years. This means neither buyers nor sellers have a strong advantage, and pricing strategy, presentation, and negotiation skills are more important than ever.

Sellers should be prepared to compete:

• 15,002 active listings now on market (up nearly 16%)

• Over half of listings in June had price reductions

• Average homes are closing at 93.1% of original list price

What This Means for Sellers

If you're thinking about selling your home in Austin Texas, pricing correctly is more critical than ever. The days of aggressive overpricing are long gone. With buyers taking their time and inventory rising, listings that are not competitively priced are sitting.

Your best strategy in this market:

• Price at or slightly below recent comps

• Prepare and stage your home professionally

• Offer flexibility on closing timelines or concessions if needed

Well-presented, well-priced homes are still moving, but the margin for error is shrinking.

What This Means for Buyers

This is one of the best opportunities in recent years for buyers to:

• Compare homes across a wide inventory

• Negotiate on price, repairs, or closing costs

• Take more time during due diligence

Even with higher interest rates, many buyers are finding better value in today’s market. Sellers are more motivated, and there is less competition for each listing.

Final Thoughts from Colt Yancey

The July 2025 Austin housing market isn’t crashing—it’s correcting into balance. Inventory is up, days on market are longer, and pricing is returning to more sustainable levels.

This is a healthy phase in the market. And whether you're buying, selling, or investing, the key to success is working with someone who knows the numbers and how to interpret them in real time.

If you have questions about your neighborhood, your property, or your investment strategy—let’s talk.

Colt Yancey
Realtor® | Teamly Realty
Your Austin Texas Real Estate Expert

FAQ: Austin Housing Market July 2025

Is Austin still in a seller’s market?
No. With 6.1 months of inventory, Austin has moved into a balanced market.

Are home prices dropping in Austin Texas?
Yes. Median prices dropped 3.3% compared to July 2024.

How long are homes sitting on the market in Austin?
The average is now 60 days, up from 57 a year ago.

Are more homes being listed for sale in Austin?
Yes. New listings are up 13.4% year-over-year.

What is the average close-to-list price ratio?
93.1% in July 2025, compared to 94.2% in July 2024.

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.