Austin Real Estate Market Update – February 2025: What Buyers and Sellers Need to Know

The Austin real estate market continues to adjust, providing both challenges and opportunities for homebuyers and sellers. As of February 6, 2025, there are 11,795 active residential listings and 3,613 pending sales, leading to an Activity Index of 23.45%. Whether you’re considering buying, selling, or simply keeping an eye on market trends, understanding the current data is key to making informed decisions.

Austin Housing Inventory & Market Trends

One of the most critical factors influencing home prices and competition is the months of inventory. Across the 30 cities in Central Texas, this metric ranges from 1.89 to 11.00 months, with the overall Austin-area market sitting at 4.1 months of inventory. This means the market is leaning toward a balanced state, giving both buyers and sellers negotiating power.

Homes are spending an average of 80 days on the market, reflecting the shift from the hyper-competitive conditions of previous years. Additionally, 47.52% of active listings have undergone price reductions, signaling that sellers are adjusting to changing demand.

Austin Home Prices: Where Do They Stand?

The median sold price in the Austin area is currently $408,451, while the average sold price is $535,156. Compared to the market peak in May 2022, the average sold price has declined by (-25.74%). For buyers, this presents an opportunity to enter the market at a lower price point than in recent years. Sellers, on the other hand, must be strategic about pricing to attract serious offers in a more balanced market.

The sold-to-list price ratio stands at 96.99%, meaning that homes are selling slightly below asking price on average. This is a shift from the high-demand period when bidding wars often pushed prices above list prices.

What This Means for Homebuyers

For buyers, the increase in inventory and longer days on the market means more choices and less pressure. Additionally, nearly half of all listings have had price drops, creating opportunities to negotiate a better deal. If you're a first-time buyer or looking to upgrade, now is a great time to explore your options while prices are lower and competition is more manageable.

What This Means for Sellers

Sellers should price their homes competitively from the start to attract serious buyers. Overpricing can lead to extended time on the market and eventual price cuts. Homes that are well-maintained, staged, and accurately priced are still selling, but sellers need to be realistic about current conditions.

Need Expert Guidance? Let’s Talk!

Navigating the Austin real estate market requires expert insight and strategy. Whether you’re looking to buy your dream home or sell for the best possible price, I can help you make data-driven decisions. Contact me today for a consultation and let’s discuss the best approach for your real estate goals.