May 14,2025: As of mid-May 2025, market activity across the Central Texas MLS shows that price reductions are becoming a dominant trend in residential listings. Out of 16,577 active listings, 50.1% have experienced a price drop. Only 2.7% of listings have seen a price increase, while 47.2% have remained unchanged. This reflects a market where sellers are adjusting prices in response to shifting buyer demand and rising inventory levels.

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In Austin, which has the largest share of listings with 5,257 active homes, 51% of properties have dropped their prices. Only 1.2% have raised their asking prices. Neighboring cities like Round Rock and Georgetown show similar patterns. Round Rock, with 620 listings, has 51.5% of its homes marked down, while Georgetown’s 1,271 listings show 48.7% with price reductions. Leander has 709 listings, with 52.8% showing a price drop.

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Some smaller markets are also reporting large percentages of listings with price reductions. Manchaca leads with 78.9% of its 19 listings marked down. In Lago Vista, 58.1% of the 279 listings have been reduced. Liberty Hill has 447 active homes, and 57.3% have dropped in price. San Marcos reports a 56.6% price drop rate among its 408 listings, and Elgin, with 269 homes, shows 55.4% reduced pricing. Kyle and Taylor follow closely with 51.9% and 56.8% of listings reflecting price drops, respectively.

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In more price-stable markets like Cedar Park and Smithville, the majority of listings have maintained their asking prices. Cedar Park has 252 active listings, with 53.6% unchanged and 42.9% showing price drops. Smithville, with 86 listings, has the highest rate of price stability at 62.8%, and only 36% have dropped their prices.​

While price drops are the most common adjustment, a few cities report modest price increases. Liberty Hill stands out with 9.4% of listings increasing in price. Jarrell has 10.2%, Kyle has 7.9%, and Del Valle shows a 4.9% increase among its 81 listings. However, these increases remain small compared to the widespread reductions.

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This trend is also reflected in the new construction segment. Of the 3,914 new construction listings across the MLS, 46.2% have experienced a price drop, 44.3% are unchanged, and only 9.5% have increased in price. Round Rock’s new construction market shows that 33.6% of listings have been marked down, while 46% remain stable and 20.4% have gone up in price.

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As inventory rises and activity slows, pricing strategies continue to shift. With over half of all active listings across the MLS undergoing reductions, this data highlights how widespread the trend has become in Central Texas. Buyers now have more leverage, while sellers are recalibrating to meet the current market.

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FAQ: Central Texas Housing Market Price Drops

Why are so many homes in Central Texas reducing their prices?

As inventory levels rise and buyer activity slows, sellers are adjusting their prices to stay competitive. In May 2025, over 50% of active MLS listings across Central Texas had price drops.

Which cities are seeing the biggest price cuts?

Manchaca, Liberty Hill, Lago Vista, Elgin, and San Marcos are among the cities with the highest percentage of listings showing price reductions—many over 55%.

Are price increases still happening anywhere?

Yes, although rare. Cities like Liberty Hill, Jarrell, and Kyle have seen a small percentage of listings increase in price, often related to upgrades or new construction.

Is this a good time to buy in Central Texas?

With increased inventory and widespread price reductions, buyers have more options and negotiating power than in previous years.

How does this affect new construction homes?

Nearly half of all new construction listings in the MLS have seen price drops, making builder incentives and discounts more common in today’s market.