Austin Real Estate Market Update – May 27, 2025
Austin Housing Inventory Near All-Time High as Buyer Activity Slows
The Austin real estate market continues to shift under the weight of historic inventory levels and subdued buyer demand. As of May 27, 2025, active residential listings in the Austin-area MLS stand at 17,297—just shy of the all-time record set the day before. That figure marks a 19.7% increase over the same time last year, underscoring a growing imbalance between supply and demand.
Since January, 24,032 new listings have been added—30.7% above the historical average and 4.3% higher year over year. Yet pending sales have not kept up. Cumulative pending contracts total just 18,163, which is 10.8% lower than last year. The New Listing to Pending Ratio now sits at 0.55, while the Activity Index has fallen to 22.4%. Months of Inventory has climbed to 6.19—up 22.1% from a year ago—further tilting the market in favor of buyers.
At Team Price Real Estate, we analyze this data daily to provide our clients with the most up-to-date insight into the Austin-area housing market. Our website features more than 2,000 pages of detailed, hyperlocal real estate statistics covering the top 30 cities and 75 ZIP codes across Central Texas. This ongoing research allows us to track patterns in real time—whether you're a buyer, seller, or investor.
What’s clear from this data is that real estate in Austin is deeply local. While inventory has surged over 100% in places like Jarrell, Marble Falls, and Cedar Park, other areas are seeing contraction. Hutto’s inventory is down 27.0% year over year, Del Valle has declined 19.9%, and Wimberley has dropped 17.7%. Meanwhile, inventory in the City of Austin itself is up 35.2% compared to May 2024 and has climbed 42.0% year to date. These contrasts highlight the need to evaluate market conditions neighborhood by neighborhood, as trends vary widely across the metro area.
Prices across the region continue to reflect correction. The median sold price for May remains at $455,000, down 17.27% from the May 2022 peak of $550,000. The average sold price has declined to $593,711, a 12.94% drop over the same period. More than 51.5% of all active listings have undergone at least one price reduction, with even greater discounting seen in areas like Liberty Hill, Lago Vista, and Jarrell where market absorption has slowed more severely.
Performance varies by location, but the pressure is broad-based. Out of the top ZIP codes tracked, 17 cities have seen year-over-year price increases while 13 have posted declines—highlighting the uneven nature of the correction. The bottom 25th percentile of homes is down 3.9% in median price, while the top 25th percentile has declined 1.5%. Price per square foot has also fallen across both tiers, reflecting softer conditions even in higher-end markets.
For those watching the Austin real estate forecast or deciding whether now is the right time to enter the market, the data shows that buyers continue to hold more leverage. Sellers must adjust pricing to current conditions or risk extended days on market. With inventory expanding faster than contracts are closing, and buyer urgency slowing, well-informed pricing strategies are more important than ever.
Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 27, 2025.
Austin Real Estate Market – Frequently Asked Questions (May 27, 2025)
What is the current state of the Austin housing market as of May 2025?
As of May 27, 2025, the Austin housing market continues to experience record-high inventory alongside reduced buyer activity. Active residential listings have reached 17,297, a 19.7% increase compared to this time last year. From January through May, 24,032 homes have been listed across the Austin-area MLS—30.7% above the long-term average. However, only 18,163 properties have gone under contract, resulting in a 5,869-unit gap that reflects the largest absorption shortfall since 2004. The New Listing to Pending Ratio stands at 0.55 for May and 0.66 year to date, well below the 25-year average of 0.81. The Activity Index, which tracks the percentage of active listings under contract, is now 22.4%, down from 26.1% a year ago. These indicators confirm a buyer-driven market, with sellers facing longer timelines and increased pricing competition.
How much housing inventory is available in the City of Austin right now?
The City of Austin currently has 5,487 active residential listings. Months of Inventory (MOI) has risen to 6.19, up from 4.36 in January and up 35.2% year over year. This places Austin squarely in buyer’s market territory. While inventory is surging in many cities—Marble Falls, Cedar Park, and Jarrell have each seen MOI double since January—some areas are seeing the opposite trend. Hutto’s inventory is down 27.0% year over year, Del Valle has dropped 19.9%, and Wimberley is down 17.7%. These sharp contrasts highlight the importance of evaluating market conditions at the local level rather than assuming the entire region is moving in one direction.
What does the New Listing to Pending Ratio of 0.55 indicate for the Austin housing market?
A New Listing to Pending Ratio of 0.55 means that for every two homes listed, only one is going under contract. This is well below the 25-year average of 0.81 and indicates that inventory is growing much faster than it is being absorbed. The year-to-date ratio of 0.66 tells the same story. This sustained imbalance puts pressure on sellers to price competitively and adjust expectations. For buyers, it reflects a market rich in options, reduced urgency, and increased leverage in negotiations.
Is buyer activity increasing or decreasing in the Austin real estate market?
Buyer activity is decreasing. Through the first five months of 2025, 18,163 homes have gone pending—10.8% fewer than the same period in 2024. The Activity Index has fallen to 22.4%, confirming that a smaller share of available homes are under contract at any given time. Despite a high number of listings, buyers remain cautious. Many are waiting for further price drops, improved affordability, or builder incentives before making a move. This slowdown in demand continues to shape the trajectory of the market.
How are Austin home prices trending in May 2025?
Home prices in Austin are still adjusting from the pandemic-era peak. The median sold price for May remains at $455,000, representing a 17.27% decline from the May 2022 high of $550,000. The average sold price has fallen to $593,711, down 12.94% over the same period. More than 51.5% of active listings have experienced a price reduction. Entry-level homes in the bottom 25th percentile are down 3.9% year over year, while luxury properties in the top 25th percentile have declined 1.5%. Price per square foot has dropped across all segments. With inventory high and urgency low, buyers have more negotiating power, and only well-priced homes are moving quickly.
Have a Question or Want to Dive Deeper?
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