Austin Market Report - March 2025

[David Ivy]

The March 2025 report from the Austin Board of REALTORS® (ABoR) shows a fairly stable, balanced housing market in the Austin metro. Here are some key highlights from the report, which compares March 2025 with March 2024:

• The median sales price for the greater Austin metro was flat year-over-year at $446,000, while the City of Austin rose 5,5% to $590,570. This continues the stable pricing pattern we’ve seen for some time now without any substantial swings up or down.
• Total closed sales in the metro fell 9.3%, with the city itself seeing a 8.9% decrease in closed sales. This indicates a slower market so far heading into the spring compared to last year.
• Pending sales under contract rose 3.1% in the metro, but fell 4.2% in the City of Austin. This forward-looking indicator suggests mostly flat or stable buyer demand.
• Listing inventory increased 18.8% in the metro and a significant 23.7% in the City of Austin, resulting in around 5 months of available housing inventory in both the city and greater metro. So, there are significantly more homes on the market now compared to last year.
• 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 the past year.

Here are the March 2025 stats 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 March 2025 showed a year-over-year increase of 3.5% in Austin.

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 16%. 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 50% higher than it was at the start of 2020. For the 10 year period spanning

March 2015-2025, the median single-family home price rose at an annualized rate of 8.9%.

I’m now also 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 6.8% interest, which is down from the 7.5% high seen over the past year:

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 94% 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 seller-paid interest rate buydown or looking at new construction, where builders are offering rate reductions and other substantial incentives. You will face more competition from fellow buyers as we continue through the spring. However, you will also see more listings hit the market.

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 in the greater metro. 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 among sellers, it’s crucial to prepare your property to stand out and work to address obvious buyer objections prior to going on market.