Austin’s housing market continues to balance between buyer opportunity and seller caution, with inventory stretching and prices holding below peak levels.

Austin’s real estate market is moving through late summer with a mix of resilience and recalibration. As of August 18, 2025, there are 17,528 active residential listings across the Austin area, a 15.4% increase compared to the same point last year when active inventory stood at 15,191. This rise in available homes has created more options for buyers while requiring sellers to stay competitive in both pricing and presentation. In fact, 59% of all active listings have experienced at least one price reduction, highlighting the push and pull between supply and demand.

Inventory and Activity Levels

Current active listings remain below the late June peak of 18,146 but still represent one of the highest levels in recent years. Compared to 2024, inventory is not only larger but also moving at a slower pace. The Activity Index, which measures how much of the market is being absorbed by buyers, sits at 19.5% versus 21.2% at this point last year. That 7.7% decline reflects a market that is leaning toward buyers, with homes staying available longer and price flexibility becoming more common. Pending listings provide another lens into current demand. There are 4,252 homes under contract today, a modest 4.3% increase compared to the 4,077 pending sales at the same time in 2024. While that uptick is encouraging, cumulative pending transactions from January through August are down 7.4% year-over-year, almost exactly in line with long-term averages. This shows that buyers are still active but making more deliberate decisions, carefully weighing affordability against the abundance of inventory.

New Listings and Market Flow

Year-to-date, 36,145 new listings have hit the Austin housing market. That’s up 1.8% from last year and more than 20% above the 25-year average. However, the number of homes going under contract has not kept pace, creating a gap of nearly 7,000 more new listings than pendings so far this year. The new listing-to-pending ratio for 2025 stands at 0.69, well below the long-term average of 0.82. Monthly figures for August sit even lower at 0.65, showing that supply is outpacing demand at a noticeable rate. The Market Flow Score, which normalizes supply and demand conditions on a scale of 0 to 10, sits at 4.36, well below the historical average of 6.60. A score in this range signals a sluggish market with slower turnover and a buyer-friendly environment.

Months of Inventory and Market Balance

Perhaps the clearest signal of shifting balance is found in months of inventory. Austin currently sits at 6.26 months of supply, up 16.2% from 5.39 months at this time in 2024. Historically, six months of inventory represents a balanced market between buyers and sellers. The fact that Austin has moved above that threshold indicates a shift toward buyer leverage, where supply comfortably meets demand and multiple offers are no longer the norm. Regional breakdowns further illustrate this trend. Cities like Georgetown, Leander, and Liberty Hill have seen sharp increases in inventory compared to last year, while only a handful of markets, such as Driftwood and San Marcos, are holding steady or declining.

Sales Trends and Prices

On the sales side, 2,590 homes closed in the most recent reporting period, bringing year-to-date sales to 20,396. That figure is down 5.4% compared to the same stretch in 2024, but it still sits 5.4% above the long-term average, which shows that while buyer activity has slowed, the market is not stagnant. Prices remain well below the pandemic-era highs. The average sold price now sits at $605,856, down roughly $76,000 (11.2%) from the May 2022 peak of $681,939. The median sold price is currently $455,000, nearly $95,000 (17.3%) below its peak of $550,000 in May 2022. Compared to 36 months ago, today’s median is 8.3% lower, showing how the correction has worked its way through the system. Not all parts of the market are moving in the same direction. Higher-end homes in the top quartile are up 3.4% year-over-year in price, while the bottom quartile has slipped slightly by 0.7%. Price per square foot has fallen in both segments, down 3.5% at the high end and 4.0% at the low end, pointing to broader affordability pressures.

Long-Term Outlook and Forecast

Austin’s housing market has averaged a compound annual appreciation rate of just over 5% for the past 25 years. Applying that historical pace to today’s median price of $455,000, it would take until August 2029—about four years—for values to climb back to the previous peak of $551,155. While that projection assumes steady appreciation, it helps set realistic expectations for both buyers and sellers. For buyers, this environment means more leverage and greater choice. With nearly six and a quarter months of inventory and almost 60% of listings seeing price reductions, opportunities exist to negotiate favorable terms. For sellers, the message is clear: homes must be priced right from the start, staged well, and marketed effectively to stand out in a crowded marketplace. Investors should view this as a market in transition—while appreciation has slowed, rental demand and Austin’s long-term growth story remain strong.

Conclusion

Today’s numbers show a market still working through its correction. Inventory is higher, sales are steady but below peak, and prices remain well under their highs from just three years ago. Buyers have the advantage of choice, while sellers must adjust expectations to align with today’s Austin real estate forecast. For agents and market professionals, the key will be guiding clients through realistic pricing strategies, negotiation opportunities, and the broader context of where Austin housing fits into long-term trends.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for August 18, 2025​