Austin Real Estate Market Update – March 2025
As we step into March, the weather is unpredictable but enjoyable! No matter what you have planned this month, we hope you're making the most of it.
The real estate market continues to stabilize, though demand remains slow. While pricing is holding steady, higher mortgage rates have kept some buyers on the sidelines. Let’s dive into the latest market stats.
Is Austin Becoming a Buyer’s Market?
Several factors indicate a shift toward a more buyer-friendly market:
Home Prices Are Growing, But Slowly – The median home price continues to rise, but at a much slower pace compared to previous years.
Homes Are Taking Longer to Sell – The average days on the market have increased, giving buyers more choices.
Buyers Have More Negotiating Power – More homes are selling below the asking price, allowing buyers to secure better deals.
More Deals Are Falling Through – Cancellations have hit their highest level since 2017, signaling buyer hesitancy.
Austin Housing Market Snapshot
Here's a quick look at the numbers:
Total Sales & Pending Sales: Down compared to last year.
New Listings: Remained stable, but Active Listings have increased, providing buyers with more options.
Sold Prices: Rose slightly to $566K, average. While median sold Price: Declined 2.7% to $428K, showing market stability.
Inventory Levels: Increased to 5.1 months, up 15.9%, pushing the market further into balanced-to-buyer-friendly territory.
Average Days on Market: Jumped to 98 days, meaning homes are taking longer to sell.
Pricing Trends: Stability in Austin’s Market
Over the past 18 months, Austin’s home prices have remained relatively stable. February saw a 2.5% increase in the average sold price but a 2.7% decline in the median sold price. These modest shifts suggest that the market is neither dramatically rising nor falling, maintaining a steady pace.
Market Demand: Pending Sales & New Listings
The number of pending sales followed seasonal trends, increasing slightly from January but remaining lower than last year. New listings have also been steady, indicating that Austin is not seeing an influx of inventory. While buyers have more options, competition remains moderate compared to previous years.
Other Key Market Influences
Mortgage Rates: Early 2025 saw rates rise above 7%, but they recently dropped to 6.7%. If this downward trend continues, more buyers may return to the market.
Consumer Confidence: Economic uncertainty has led to shaky consumer confidence, causing some buyers to wait before making a move.
Austin’s Job Market: The tech sector’s hiring freeze has continued for over two years, with no major signs of recovery. Until hiring picks up, housing demand may remain lower than normal.
Advice for Buyers
With higher inventory and longer days on market, buyers have more choices. However, competition tends to increase in the spring. If you're looking for less competition, now might be a great time to buy. Additionally, mortgage rates have dipped slightly—if this trend continues, you may secure a better deal on financing.
Advice for Sellers
Spring is traditionally the best time to list, but strategic pricing is critical. With an average of 98 days on the market, sellers should prepare their homes well and price realistically. While demand isn’t at its peak, well-presented and well-marketed homes in desirable areas are still selling.
Final Thoughts
The Austin real estate market is shifting, but it remains steady. Whether you’re buying or selling, having a solid strategy is essential. If you have any questions or need expert guidance, reach out—we’d love to chat and help you navigate your real estate goals!