Austin Housing Market Report May 2025

Staying informed about the Austin housing market is crucial, whether you're looking to buy or sell.  See what’s happening in the Austin housing market and how broader economic trends and local activity are creating a more balanced and confident real estate environment.

Austin’s housing market continued to shift in May, with prices holding steady at $449K and inventory reaching nearly 15,000 active listings. Homes sold more quickly than last month, averaging 57 days on the market, 19 days faster than April. Pending sales were up 16.1% from April 2024, showing that buyers are still active. With more choices and stable pricing, the market is moving at a healthier pace for both buyers and sellers. As Compass CEO Robert Reffkin recently told CNBC, “It's a better time to be a buyer than it was last year. You can't buy what's not for sale, and there's a lot more for sale," Reffkin said.

Let’s look at May’s numbers:

• Available Homes Increase — May saw 14,673 active listings, a 17.4% increase year-over-year and a 10% jump from April.
• Prices Hold Steady — The median home price was $449K, down 1.6% from May 2024 and unchanged from last month.
• Market Pace Picks Up — Homes spent an average of 57 days on the market, 19 days less than April and only 9 days more than last year.
• Buyer Interest Surges — Pending sales climbed 16.1% year-over-year, suggesting that many are ready to act even as closed sales slipped 3.8%.
• Supply Remains Solid — Months of inventory dipped slightly to 5.0, up 1.0 month from last year and down less than 1 month from April.
• Market Snapshot — Over 14,000 homes are on the market, selling for an average of 94.6% of the original list price; Realty Austin Compass listings achieved 98.1% of their original list price and sold 17 days faster than the MLS average.

Clarity Around Home Prices

Austin’s median home price dropped to $449K in May, a slight 1.6% decrease compared to last year and nearly unchanged from April. We are starting to see pricing in Austin beginning to feel more consistent. With fewer dramatic shifts, buyers and sellers are finding it easier to align on value. That clarity makes the decision process more straightforward, reduces second-guessing, and helps prepared listings stand out. As expectations settle on both sides, transactions are moving forward with more confidence and less friction.

“We’re seeing motivated buyers return to the market with a clearer sense of what they want. Inventory is up, pricing has leveled out, and that’s creating opportunities on both sides of the transaction. It’s a much more balanced environment than we’ve seen in recent years,” said John Coake, Senior Vice President of Realty Austin Compass.

The Hesitation Window is Starting to Close

Over the past few months, some buyers on the sidelines have hit pause on their home search, but May’s numbers suggest that window may be narrowing. Pending sales in the Austin area rose more than 16% year-over-year, and average time on market dropped by 19 days compared to last month. This reflects a broader national trend. The Mortgage Bankers Association reported a 9% increase in purchase applications in early June as mortgage rates moved slightly lower. With activity building and conditions beginning to shift, buyers who act quickly may find more flexibility than those who wait.

Positive Signs from Buyers

The current sentiment toward housing is beginning to rebound from previous years. In May, Fannie Mae’s Home Purchase Sentiment Index rose to 73.5, marking its highest level in nearly two years and showing steady improvement in how Americans view today’s homebuying conditions, price trends, and job stability. While affordability remains a challenge for some, this uptick in confidence suggests that serious buyers are becoming more willing to engage. As that confidence builds, it could lead to more consistent activity across the market heading into the second half of the year.

Austin’s Homebuyer Resources

The City of Austin offers a range of tools to help first-time buyers confidently take the steps to own a home. Through the city’s  Down Payment Assistance Program, eligible buyers earning up to 80% of the Median Family Income may receive up to $40,000 to use toward their down payment and closing costs on homes priced under $579,025. Those approved must complete a HUD-approved homebuyer education course from a city partner like Frameworks Community Development Corporation or Business & Community Lenders (BCL) of Texas. These courses cover topics like budgeting, credit, and the full homebuying process, and include a certification of completion required for financial assistance.

Additionally, the Austin Community Land Trust offers affordable homeownership opportunities by separating the cost of land from the home itself, keeping prices more affordable in the long run. Programs like these are helping the community transition from renting to owning in a competitive market like Austin. For more details and additional local programs, explore Realty Austin Compass’s blog on affordable housing resources.

"Even in a shifting market, the fundamentals remain the same. People still want to put down roots. We are focused on helping buyers and sellers cut through the noise, understand their options, and feel confident about their next move," explains Jennifer Korba, Senior Agent Success Manager at Realty Austin Compass.

Equity Gains Give Sellers an Edge

Years of rising home values have left many Austin homeowners in a strong position, even as the market shifts. According to the latest data, U.S. properties with mortgages now hold $17.6 trillion in equity, with the average homeowner sitting on around $212,000 in equity. For sellers, that equity can make a big difference in funding their next purchase, covering moving expenses, or even just adding more flexibility to their lives. If you want to learn more about how to use your home’s equity, view our resource here.

Inspire Informed Decisions

Market conditions are shifting in ways that open the door for confident decisions. With clearer pricing, improving buyer sentiment, and strong equity for many sellers, now is a good time to explore your options. Reach out to a Realty Austin Compass agent to understand what’s possible in today’s market.

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