Austin Real Estate Market Update – May 20, 2025
Inventory Holds Near Record High as Buyer Market Conditions Deepen
Austin’s housing market update for May 20, 2025, reflects a continuation of the high-inventory trend that has defined the spring market. Active residential listings across the MLS total 16,950—just 127 units below yesterday’s all-time high of 17,077. Within Austin city limits, inventory remains elevated at 5,367. Year-to-date, new listings have reached 22,919, placing them 24.9% above the long-term historical average. This acceleration in inventory growth continues to outpace buyer demand, reinforcing a supply-heavy environment.
Pending listings year-to-date now stand at 5,031, a 1.0% decline from the same period in 2024. The New Listing to Pending Ratio is currently 0.53 for the month and 0.66 year to date, both well below the 25-year average of 0.81—indicating a persistent imbalance where new listings are entering the market faster than buyers are writing contracts. The Activity Index has dropped to 22.9%, down from 26.5% one year ago, reflecting a decline in buyer engagement relative to available inventory.
This growing gap between supply and demand is reflected in Months of Inventory (MOI), now at 6.03—up 22.8% from 4.91 in May 2024. While 7.0 months is generally considered the threshold for a full buyer’s market, most areas, including the City of Austin at 6.10 MOI, are closing in on that mark. Several outlying areas, including Dale, Spicewood, and Marble Falls, remain at 11.00 months, showing prolonged oversupply in specific submarkets.
Prices continue to show signs of long-term correction. The median sold price for May 2025 is $465,000, down 15.45% from the May 2022 peak of $550,000. The average sold price for the month is $604,481, an 11.36% drop from its 2022 peak of $681,939. Year-to-date, the median price across all properties is down 0.9%, while the average is up slightly by 0.9%. Price declines are broad-based: the bottom 25th percentile is down 3.9% year over year, and the top 25th percentile is down 3.1%, with price per square foot dropping in both segments.
City-level data shows that inventory pressure and price softening are not confined to luxury markets. Communities such as Liberty Hill (5.75 MOI), Leander (6.13 MOI), and Round Rock (4.24 MOI) are experiencing broad-based declines in listing activity and price resilience despite being historically more affordable and family-oriented markets. Each of these areas has seen elevated price drops, with over half of active listings in Liberty Hill and Leander undergoing reductions. This shift highlights the widespread nature of the market correction across both suburban growth corridors and core metro areas alike.
Although select listings still attract interest, especially if priced strategically, the broader market is defined by longer days on market, more frequent price drops, and increased buyer caution. Per capita home sales remain well below average, and with most indicators pointing to further normalization, buyers are gaining leverage across most segments.
Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 20, 2025.
Austin Real Estate Market – Frequently Asked Questions
What is the current state of the Austin housing market in May 2025?
As of May 20, 2025, the Austin housing market is navigating a continued shift toward buyer-friendly conditions. Active residential listings across the MLS total 16,950—just below the all-time high of 17,077 set the previous day. Year-to-date, new listings are up 24.9% compared to the long-term average, significantly outpacing contract activity. Pending listings stand at 5,031, a 1.0% decrease from this time last year. The New Listing to Pending Ratio is currently 0.53, well below the historical average of 0.81, indicating that for every two new listings, just one is going under contract. The Activity Index has declined to 22.9%, confirming that buyer engagement is softening. These dynamics—rising supply, subdued demand, and lagging contract volume—are contributing to longer days on market, widespread price reductions, and growing leverage for buyers.
How much housing inventory is available in the City of Austin right now?
The City of Austin has 5,367 active residential listings, marking a substantial increase from the same period in 2024. Months of Inventory (MOI) in the city has reached 6.10, up from 4.91 a year ago—a 22.8% increase. While 7.0 months of inventory is the typical benchmark for a full buyer’s market, Austin is approaching that level quickly, with many neighborhoods already functioning under neutral to soft buyer conditions. In outlying areas like Dale, Spicewood, and Marble Falls, inventory has reached 11.00 MOI, indicating a sharp oversupply and limited buyer activity. These elevated inventory levels are placing downward pressure on pricing and increasing negotiating flexibility for buyers throughout the region.
What does a New Listing to Pending Ratio of 0.53 mean for buyers and sellers?
A New Listing to Pending Ratio of 0.53 means that only about half of newly listed homes are going under contract, reinforcing a clear supply-demand imbalance. For sellers, this translates to heightened competition, longer marketing times, and a growing need for strategic pricing and compelling value. Without proper pricing, listings risk stagnating and requiring multiple reductions. For buyers, the current ratio signals favorable conditions—greater selection, more room to negotiate, and less urgency to make quick decisions. The long-term average for this ratio is 0.81, so today’s lower level points to continued softness and opportunity for buyers who are active and prepared.
Is buyer activity increasing or decreasing in the Austin real estate market?
Buyer activity is decreasing. The Activity Index, which measures the percentage of active listings under contract, has dropped to 22.9%—a 13.6% year-over-year decline from 26.5% in May 2024. This drop aligns with a broader slowdown in pending transactions, which are 2.9% below the historical average year to date. These numbers indicate that buyer confidence and urgency remain subdued. Affordability constraints, higher inventory, and a wait-and-see approach are contributing to slower decision-making. With inventory building and fewer contracts being written, the market pace has moderated, and well-positioned buyers now hold a stronger position in negotiations.
How are Austin home prices trending in May 2025?
Austin home prices continue to show signs of a multi-year correction. The median sold price for May 2025 is $465,000, down 15.45% from the peak of $550,000 in May 2022. The average sold price for the month is $604,481, down 11.36% from the 2022 high of $681,939. While the year-to-date average sold price across all properties is up 0.9% from last year, the year-to-date median is down 0.9%, highlighting mixed conditions driven by selective high-end sales. Importantly, both the lower and upper segments of the market are weakening: homes in the bottom 25th percentile are down 3.9% year over year, while those in the top 25th percentile are down 3.1%. Price per square foot has declined in both categories, confirming that the correction is broad-based and not isolated to a specific tier. This ongoing shift reflects the influence of excess inventory, slowing buyer activity, and more cautious market behavior.
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