Is Austin a Buyer's or Seller's Market in 2025? | Austin Real Estate Update
Published | Posted by Dan Price
Is Austin a Buyer's or Seller's Market in 2025?
If you're wondering whether Austin is a buyer's or seller's market in 2025, the answer depends entirely on where you're looking. Just like weather averages can be misleading—say the average U.S. temperature is 73°, but that includes 30° in Alaska and 100° in Texas—the overall market label doesn't tell the full story. According to current data from Team Price Real Estate, the City of Austin as a whole is in a neutral market, but that average masks major differences across ZIP codes and neighborhoods. To truly understand the market, we need to go hyperlocal.
Northwest Austin: Still Competitive for Sellers : Northwest Austin remains strong for sellers in 2025. Areas like 78731 (Northwest Hills), 78750 (Anderson Mill), and 78759 (Great Hills) have Months of Inventory below 4.9, indicating a seller's market. These neighborhoods are still seeing steady buyer demand and homes that are priced right are moving relatively quickly.
Northeast Austin: Balanced but Showing Opportunity : Northeast Austin is more of a neutral zone. ZIPs like 78723 (Windsor Park), 78752 (Highland), and 78753 (North Lamar) are holding around 5 to 6 months of inventory. That balance means neither buyers nor sellers have a significant advantage, but well-priced homes can still generate strong interest. Watch for shifts here—if activity ticks up, these areas could lean more toward sellers.
Central Austin: Cooling Toward a Buyer’s Market : In areas like 78701 (Downtown), 78702 (East Cesar Chavez & Holly), and 78704 (Zilker & Bouldin), inventory is high and buyer activity is tapering off. These ZIPs are classified as buyer’s markets, with inventory levels above 7 months. For buyers looking near the core, this is where negotiation leverage is greatest.
South Austin: Balanced but Trending Cooler : South Austin neighborhoods such as 78745 (Cherry Creek), 78748 (Tanglewood Forest), and 78747 (Onion Creek) are currently neutral but teetering toward buyer-favored territory. Activity Index data suggests engagement is holding, but sellers may need to be flexible on pricing.
West Austin: High Prices, High Inventory : In West Austin, ZIP codes like 78746 (Westlake) and 78733 (Cuernavaca) remain luxury-driven but show signs of cooling. These areas are considered buyer's markets due to inventory levels exceeding 7 months. While demand for high-end homes exists, buyers have more options and negotiating power than in previous years.
Suburban Standouts: Strong Sellers Markets : Outside the city core, areas like Hutto (78634), Pflugerville (78660), and Cedar Park (78613) are solidly in seller’s market territory. Inventory is low and buyer activity is elevated, often leading to quick sales and minimal price reductions. These suburbs continue to attract relocating buyers and first-time homeowners.
Eastern Outskirts: Buyer Advantage Zones : Moving further east to Manor (78653), Elgin (78621), and Cedar Creek (78612), inventory climbs and buyer activity begins to slow. These regions are good examples of buyer's markets, where selection is greater and sellers may be more open to negotiation.
What This Means for You? Instead of asking "Is Austin a buyer's or seller's market?" the better question is: "where in Austin are you buying or selling?" The answer changes depending on location, price point, and timing. Team Price Real Estate tracks this data at the ZIP code level daily, using both Months of Inventory and the Activity Index to identify when markets shift. That way, clients make decisions based on facts—not generalities. If you have questions about your specific area or you're preparing to make a move, visit teamprice.com or reach out for local insights you can act on.
FAQ: Austin Real Estate Market 2025
1. Is Austin a buyer's or seller's market in 2025?
Austin overall is in a neutral market as of mid-2025, but that single label doesn’t reflect the significant variation across different areas of the city. Neighborhoods in Northwest Austin and suburbs like Hutto and Cedar Park show strong seller conditions with low inventory and high buyer engagement. Meanwhile, central ZIP codes such as 78701, 78702, and 78704 exhibit elevated inventory and slower buyer activity, making them buyer’s markets. Understanding these local dynamics is essential, as the real estate experience can vary dramatically from one ZIP code to another.
2. What defines a seller's, buyer's, or neutral market?
Market types are based on the Months of Inventory metric. This is calculated by dividing the number of active listings by the average number of homes sold per month over the past 90 days. If inventory is below 4.9 months, it's considered a seller’s market because demand exceeds supply. Between 5.0 and 6.9 months is a neutral market, indicating a balance between buyers and sellers. When inventory surpasses 7.0 months, it’s a buyer’s market, where supply is higher than current demand, giving buyers more leverage in negotiations and pricing.
3. What is the Activity Index and why does it matter?
The Activity Index is a leading indicator of real estate demand. It’s calculated by dividing the number of pending listings by the total number of active and pending listings. A higher Activity Index signals strong buyer engagement and can indicate future reductions in inventory and upward pressure on prices. Unlike Months of Inventory, which looks backward at closed sales, the Activity Index is forward-looking. That makes it particularly useful for identifying changing market momentum before it appears in closed data.
4. Why does Team Price use 7 months as the buyer's market threshold instead of 6?
While the real estate industry often uses 6 months of inventory as the standard threshold for a buyer’s market, Team Price Real Estate raises this to 7 months for better accuracy in the Austin area. The local market frequently experiences temporary dips in sales or brief surges in listings that can cause the inventory to momentarily spike above 6 months. Classifying those fluctuations as a buyer’s market can mislead clients. A 7-month threshold accounts for short-term volatility and more accurately reflects a sustained shift in market power toward buyers.
5. Where can I get the most accurate data on Austin's housing market?
For the most reliable and hyperlocal data on the Austin housing market, Team Price Real Estate is the go-to source. Unlike national platforms or outdated aggregates, Team Price tracks real-time metrics like Months of Inventory and the Activity Index by ZIP code across the Austin area. The data is updated multiple times per week and includes market classifications, pricing trends, and buyer activity insights that help both consumers and agents make confident decisions. You can explore the latest charts and briefings at teamprice.com.
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