Austin Market Report - December 2025

[David Ivy]

The December 2025 report from the Austin Board of REALTORS® shows the market closing out the year with moderate price softening compared to last year, while sales activity and inventory levels increased year-over-year across Austin and the greater metro. As is typical for the holiday season, December activity was slower overall. Here are some key highlights from the report, which compares December 2025 with December 2024:

• The median sales price in the City of Austin declined 4% to $550,000, while the greater Austin metro fell 3% to $435,000, reflecting mild year-over-year softening.
• Closed sales increased 4% in Austin to 844 transactions, while the metro rose 2% to 2,514. Sales dollar volume increased 5% in Austin to $648 million and rose 1% across the metro to $1.43 billion.
• Buyer activity remained present, with pending sales rising 1% in Austin while metro pending sales were essentially flat. New listings declined seasonally, down 5% in Austin and 7% metro-wide, while active listings increased, up 6% in Austin and 9% in the metro, consistent with typical year-end patterns.
• Inventory levels were relatively steady year over year. The City of Austin now has 4 months of supply (up 0.1 months), while the metro sits at 4.2 months (up 0.4 months). Metro-wide inventory falls within the range the Texas A&M Real Estate Center considers a balanced market, while Austin proper remains slightly below that level.
• Homes spent more time on the market compared with last year, with Austin averaging 79 days (up 3 days) and the metro averaging 88 days (up 7 days). Sellers received about 91% of list price in Austin (down from about 92%), while metro sellers averaged about 91% (down from about 92%), reflecting a more negotiated market.

Overall, the December data reflects a seasonally slower Austin-area housing market closing out 2025, with modest year-over-year price declines, slightly improved closed sales activity, and inventory levels that remained moderately higher than a year ago heading into 2026.

Here are the December 2025 stats for Austin and the greater metro:

Here are the leasing numbers for the City of Austin and the greater Austin metro area:

A 30-year fixed rate mortgage is currently around 6.07% interest, down from the 7.13% high seen over the past 12 months. This is the lowest level since September 2024, putting rates today slightly below where they stood a year ago.

What if I’m a buyer?

This remains one of the most favorable markets for buyers in Austin in years. Inventory levels are higher than in the tighter conditions of 2021 and 2022, giving buyers more choices and reducing competition. Prices are modestly softer year over year and remain well below peak 2022 levels, while longer days on market and lower average sale-to-list ratios suggest many sellers are more open to negotiation. Homes are closing at roughly 91% of list price on average, and buyers have more time to evaluate options, request repairs, or negotiate seller concessions. That said, well priced homes in strong locations can still move quickly. Buyers who plan to purchase in the spring should consider getting prepared early in Q1 so they can act quickly when the right home comes along.

What if I’m a seller?

Austin’s housing market continues to show steady buyer activity and generally stable pricing, and the majority of homeowners still sit on meaningful equity. At the same time, higher inventory levels mean buyers are more selective and often expect concessions, especially when homes are not priced or prepared appropriately. Homes are taking longer to sell compared with last year, and price reductions remain common when listings start above market expectations. For sellers planning to list in spring or early summer, now is an ideal time to prepare. Presentation, pricing discipline, and addressing potential buyer concerns before listing will matter even more in 2026 than in the prior couple of years. Under these balanced conditions, homes that are well positioned and realistically priced continue to attract buyers, while overpricing can lead to extended days on market and lower net proceeds.