Austin Market Report - January 2025

[David Ivy]

The January 2025 report from the Austin Board of REALTORS® (ABoR) shows stable housing prices and balanced market conditions in the Austin metro as we start the new year. Here are some key highlights from the report, which compares January 2025 with January 2024:

• The median sales price for the greater Austin metro fell 4.7% to $409,765, while the City of Austin saw a 4.7% increase to $553,465.
• Total sales in the metro rose 1.1%, whereas the city saw a 4% decrease in closed sales, demonstrating continued demand in spite of economic challenges.
• Pending sales under contract dropped 7.5% in the metro and 1.4% in the City of Austin, suggesting a slight decrease in demand at the start of 2025.
• Listing inventory increased 16.5% in the metro and 15.5% in the City of Austin, resulting in 5.6 months of available housing inventory in the metro and 6.2 months in the city, approximately one month more than in January 2024.
• According to the Texas A&M Real Estate Center, a balanced real estate market has around 6.5 months of inventory. The Austin area had 5-6 months of inventory for most of 2024.

Here are the January 2025 numbers for Austin and the greater metro:

Here’s a chart showing the median sales price of a single-family home in the City of Austin in over the past year:

The median sales price for a single-family home in January 2025 showed a year-over-year increase of approximately 1.9% in Austin. So, the housing market in early 2025 is mirroring the price point seen at the beginning of 2024.

For some broader context, here’s a chart of the median sales price of a single-family home in Austin over the past 10 years:

Compared to the recent price peak in June 2022, the median single-family home price in Austin is down approximately 12%. However, pricing in Austin is still substantially above pre-pandemic levels. In fact, the median sales price of a single-family home in the Austin metro is about 39% higher than it was at the start of 2020. For the 10 year period spanning

January 2015-2025, single-family prices in Austin rose 78%.

I’m happy to report that I’m now sharing leasing stats in my monthly updates. Here are the numbers for the City of Austin and the greater Austin metro area:

A 30-year fixed rate mortgage is still sitting around 7% interest:

For some broader context, here’s a chart for 30-year fixed mortgage rates over the past 5 years:

What if I’m a buyer? In many ways, this is the best market for buyers in Austin in years. There are more listings to choose from now than any other time in nearly a decade. Listings are selling for roughly 92% of their list price on average. Multiple offers situations are the rare exception, not the norm. Buyers have significantly more negotiating power. They can take time with their search and be more selective about a property’s location and condition. So, if interest rates are a buyer’s primary roadblock, then I recommend negotiating a rate buydown at a seller’s expense or looking at new construction, where builders are offering rate reductions and other substantial incentives.

What if I’m a seller? There is still strong demand for Austin area housing. Prices are still considerably higher than just five years ago. However, it’s important to price competitively and be prepared for buyers to request concessions. Days on market are averaging around 80 days, depending on the area. Many listings are adjusting their asking price at least once while on the market. But properties priced and marketed appropriately can still go under contract in a matter of days. Now is not the time to “test the market” with an ambitious price to “see what happens.” With the increased competition, it’s crucial to prepare your property to stand out and work to address obvious buyer objections prior to going on market.