Understanding the 2025 Austin Housing Market Shift

I began this recent newsletter with an article from outside the real estate industry, provided by a respected voice in the financial sector in our economy:

Gridlock in the housing marke

With that backdrop, the post linked below depicts the Austin-area residential real estate market in the context of this entire market cycle. It highlights the extreme changes in supply and demand in 2025:

2025 is complete … here’s the data

You’ll see that the shift began long before last year, with the ratio of sales to listings crashing in 2022 and trending downward since then. Median sale prices were eroded because of the supply-and-demand imbalance.

There is another trend that has affected resale listings in the Austin area:\

Nearlyl 1 in 5 New Homes Is Selling at a Disount as Homebuilders Step Up Price Cuts

Texas is among seven states in which homebuilder price reductions are above the national average, and we have certainly seen the impact in the Austin area.

With builders competing more aggressively and mortgage interest rates twice what they were a few years ago, some buyers have become more cautious:

Buyers Are Ghosting the Market:

The Metros Where They’re Backing Out of Deals

Austin is not among the highest-ranking cities named in that article, but that aspect of the market is a real factor here.

The next few weeks will help us anticipate the environment for the tradtional selling season in the Spring and Summer. I’ll share my observations as we move forward.