May 30,2025: The Austin housing market in May 2025 showed signs of cooling, with increased inventory and a noticeable shift in pricing activity. As of May 30, there were 5,506 active residential listings. Of those, 87.4% were resale properties, while only 12.6% were new construction. More than half of the listings, 54.67%, were vacant, while 35.13% were owner-occupied and 10.21% were tenant-occupied.

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Listing prices reflected downward pressure. The average list price across all active listings was $1,012,772, while the median list price stood at $635,000. A total of 2,484 listings saw a price drop, making up 45.1% of the market. In contrast, just 62 listings had a price increase, accounting for only 1.1%. The average price drop was $82,274, and the median drop was $35,000. This equates to a -6.6% average reduction and a -5.1% median reduction.

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The Activity Index, which measures buyer engagement, was 20.4% across the city. Homes priced between $800K and $900K had the highest activity index at 22.2%, followed closely by the $500K to $600K range at 22.0%. The lowest activity was seen in the $1M to $1.1M price range, with an index of 14.8%.

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In terms of price trends by value range, listings between $400K and $800K experienced the most price drops. This segment also represents the core of buyer interest and movement, as reflected in both activity and volume. Listings with no price change accounted for 53.8% of the market, while only 0.5% of listings had price increases greater than 25%.

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Homes also took longer to sell. The average days on market (DOM) was 76, and the median DOM was 52. These figures point to a more deliberate pace of sales, compared to previous periods where homes moved more quickly.

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The months of inventory metric averaged 5.74 across the city, a sign that Austin is moving into a more balanced market. Inventory varied by price band, with the lowest supply in the $600K to $700K range at 5.02 months. The highest was seen in the $1M to $1.1M bracket, which had 8.65 months of inventory.

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This combination of higher inventory, widespread price drops, longer market times, and steady buyer activity outlines a real estate market that is stabilizing. Sellers are adjusting to current demand levels, and buyers are taking advantage of increased choices and negotiability across most price segments.

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1. What is the current state of the Austin housing market in May 2025?

As of May 2025, the Austin housing market is showing signs of stabilization, with growing inventory and widespread price adjustments. There are 5,506 active residential listings, with 87.4% being resale homes and 12.6% classified as new construction. Over 45% of listings experienced price drops, while only 1.1% saw price increases. This trend reflects sellers adjusting to more cautious buyer demand. The market's average list price is $1,012,772, with a median price of $635,000, indicating a broad range of offerings. The average days on market is 76, pointing to longer selling times compared to earlier market conditions.

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​2. How much have home prices dropped in the Austin real estate market in May 2025?​

In May 2025, 2,484 listings in Austin experienced a price reduction, making up 45.1% of the active inventory. The average price drop was $82,274, and the median drop was $35,000. This equates to an average decrease of 6.6% and a median decline of 5.1%. These reductions reflect a market in which sellers are adjusting their expectations due to slower buyer activity and increased inventory across several price bands, especially in the $400K to $800K range.

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3. What price range is seeing the most activity in the Austin housing market?

Homes priced between $500K and $600K and $800K to $900K had the highest buyer engagement in May 2025. These ranges showed activity index levels of 22.0% and 22.2%, respectively, above the citywide average of 20.4%. This indicates strong buyer interest in mid-to-upper price tiers. In contrast, the $1M to $1.1M range had the lowest activity at 14.8%, suggesting softer demand for luxury properties.

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4. How long are homes staying on the market in Austin, TX right now?

Homes in the Austin market are taking longer to sell compared to previous months. In May 2025, the average days on market was 76, and the median was 52. This means that while some homes sell within two months, others are taking closer to three months or more. The increased time on market reflects a more competitive environment with higher inventory, giving buyers more time and leverage in negotiations.

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5. Is Austin currently a buyer’s or seller’s market in May 2025?

Based on the data from May 2025, Austin is leaning toward a balanced or slightly buyer-favored market. The months of inventory across all listings averaged 5.74, with higher levels in luxury price brackets like $1M–$1.1M, which had 8.65 months of inventory. Homes are taking longer to sell, and nearly half of listings have seen price drops. These trends point to a market where buyers have more options and negotiating power than they did during peak seller-driven periods.