Buyer and Seller Insights Amid Austin’s 2025 Market Shift

If you’re participating in the market now — as a home buyer, seller, or real estate professional — you’ll recognize the market environment depicted by the latest statistics: Homes are selling, but not robustly. Showings in most areas are slow, with many sellers concerned about activity, buyers uncertain about the direction of the market and the larger economy, and activity largely unresponsive to pricing and promotion.

This MLS data for existing (resale) homes across the five-county Austin metropolitan area shows dramatic growth of listing inventory since December 2025, far exceeding the peak levels last summer:

In May 2024, we had 8,025 Active Listings, versus 10,142 this May. In May 2024 there were 1,948 Closed Sales, compared to 1,832 in May 2025. During that 12-month period listing inventory grew from 4.1 Months’ Supply to 5.6 months’.

(If you were a market participant during the time of Covid, you’ll remember the pace in 2020, 2021, and 2022, when our Months’ Supply metric was less than 1 month almost every month from July 2020 through April 2022.)

With that inventory increase, some other key statistics changed less dramatically. This chart shows that although the Average Days to Sell rose from 39 days in May 2024 to 47 days in May 2025, the ratio of actual sales price to original list price dipped from 95.7% to 95.0% over that 12-month period:

(Compare again to the 2020-2022 period, when Days to Sell was below 25 days for 22 months, and just 10 days or less in the Spring of 2021. For 20 consecutive months, from November 2020 through June 2022, the ratio of Close Price to Original List price was above 100%!)

A metric that challenges many sellers now who have owned their homes for just 5 years or so is Sales Price:

The average sale price in the Austin metropolitan area in May 2025 was down 0.4% compared to May 2024, and the median price was down 2%.

(In case you’ve forgotten, or didn’t experience it, the average price in May 2021 was UP 47% from one year earlier, and the median price rose 44% during that time. The average price in May 2025 was down 12% compared to May 2022!)

We are well into the traditional Spring selling season, with little momentum to show for it. I continue to see sporadic signs of improvement, but market uncertainties continue. I will keep you informed.