Austin Real Estate Weekly Market Update – August 07, 2025

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, August 07, 2025 at 07:28 am

Austin Market Update – August 7, 2025: Inventory Up 8.6%, Median Prices Decline

As of August 2025, active residential listings in the Austin-Area MLS stand at 17,516—an 8.6% year-over-year increase. Months of Inventory has risen to 6.29, up from 5.49 a year ago, marking a 14.6% expansion in supply relative to current demand. Average pricing trends remain slightly positive, with the average list price up 2.71% to $588,456 and the average sold price up 2.4% to $568,263. However, the median list price declined 0.3% year over year to $438,535, and the median sold price dropped 1.2% to $425,000, indicating softening conditions in the mid-tier market.

In the City of Austin, inventory rose 14.4% year over year to 5,714 listings. Months of Inventory increased from 5.94 to 6.69. Both average and median price indicators moved higher: the average sold price climbed 5.5% to $771,776, while the median sold price rose 7.3% to $590,100. Across Central Texas, 57% of tracked cities and 55% of ZIP codes show year-over-year median price declines. Additionally, 69.3% of homes sold so far this month closed below list price, up from 65.9% last month. Peak-to-current comparisons reveal a continued downward trend. The median sold price in the Austin-Area MLS is down 19.4% from the May 2022 peak. In the City of Austin, the median is down 16.5% from its prior high. 

Inventory and Supply Trends

Active residential listings across the Austin-Area MLS now total 17,516, marking an 8.6% year-over-year increase from 16,136 in July 2024. Months of Inventory rose from 5.49 to 6.29 over the same period—an increase of 14.6%—signaling a 1.1× expansion in supply relative to demand. Within the City of Austin, inventory climbed 14.4% to 5,714 active listings, and Months of Inventory increased from 5.94 to 6.69, a 12.7% gain. While week-over-week totals have declined slightly, the year-over-year growth confirms an ongoing trend toward elevated buyer choice and a less constrained supply environment.

Austin Housing Prices: Mild Declines at the Median, Continued Divergence

Pricing trends across the Austin-Area MLS show diverging movement between average and median values. The average list price rose 2.71% to $588,456, while the median list price decreased 0.3% to $438,535. On the sales side, the average sold price increased 2.4% year over year, reaching $568,263, whereas the median sold price declined 1.2% to $425,000. This continued gap indicates that while higher-end properties are maintaining upward pricing influence, mid-tier home values remain under modest downward pressure.

Within the City of Austin, prices moved upward across all major categories. The average list price climbed 6.4% to $804,891, and the median list price increased 6.2% to $599,900. The average sold price rose 5.5% to $771,776, while the median sold price jumped 7.3% year over year, reaching $590,100. These figures reflect a more defined pricing rebound within Austin city limits compared to the broader MLS.

Regional Trends: ZIP Code and City-Level Divergence

Of the 30 cities tracked across Central Texas, 43% reported a month-over-month median price increase, while 57% declined. On a year-over-year basis, the same distribution held—13 of 30 cities (43%) saw price gains, and 17 (57%) declined. All 30 cities are currently below their respective 12-month price peaks.

Among the 75 ZIP codes analyzed, 53% posted month-over-month increases, while 47% declined. On a year-over-year basis, 45% of ZIP codes rose in price, and 55% fell. Only one ZIP code remains above its 12-month high. The remaining 74 have yet to recover to peak values, indicating widespread normalization from prior market highs.

List-to-Sale Price Performance: Concessions Increase

Price concessions continue to expand. So far this month, 69.34% of sold properties closed below list price—up from 65.96% last month. Another 18.35% sold at list price, down from 21.84%, and only 12.30% sold above list, nearly flat from 12.20% last month and slightly below July 2024’s 13.21%. The average sold-to-list price ratio sits at 97.13%, further confirming that most transactions now involve negotiation and seller flexibility.

Peak Value Trends: Gap Remains Across All Metrics

Current prices remain below peak levels recorded in 2022 and 2025. Within the Austin-Area MLS:

The average list price is down 4.9% from its April 2025 high of $710,812.

The median list price is down 15.7% from its May 2022 peak of $539,900.

The average sold price is 8.8% below its May 2022 high of $664,515.

The median sold price is down 19.4% from its $538,000 peak.

Price-per-square-foot figures are down 18.8% (average) and 23.2% (median) from April 2022.

Within the City of Austin:

The average list price is down 14.4% from its April 2025 peak of $944,235.

The median list price is down 17.2% from its May 2022 high of $658,589.

The average sold price is 3.9% below the May 2022 high of $847,583.

The median sold price is down 16.5% from its peak of $680,000.

Price-per-square-foot measures have declined by over 20% compared to previous highs.​

Austin Housing Market Questions and Answers

1. Is the Austin housing market cooling down in 2025?

Yes, the Austin housing market continues to cool from its 2021–2022 peaks. As of August 2025, active listings in the Austin-Area MLS are up 8.6% year over year, and Months of Inventory has risen to 6.29—indicating a shift toward a more balanced or even buyer-leaning market. While the average sold price has increased 2.4% year over year, the median sold price is down 1.2%, suggesting price softening in the mid-tier segment. Most ZIP codes and cities across Central Texas remain below their peak values, and nearly 70% of homes sold this month closed below list price.

2. What’s the average home price in Austin, Texas right now?

As of August 2025, the average sold price for a home in the Austin-Area MLS is $568,263, while the median sold price is $425,000. Inside the City of Austin, the average sold price is higher at $771,776, and the median sold price is $590,100. These averages reflect both urban and suburban price differences, with City of Austin homes trending higher due to property type, location, and buyer demand.

3. Are Austin home prices expected to go back up?

Home prices in Austin remain below their previous peaks. The median sold price in the Austin-Area MLS is still 19.4% lower than its peak in May 2022, and the average sold price is 8.8% below its prior high. While the City of Austin has shown some recovery, with the median sold price up 7.3% year over year, long-term growth will likely depend on job creation, mortgage rates, inventory levels, and migration trends. Currently, price stability varies by ZIP code, with 55% of local ZIP codes showing year-over-year price declines.

4. How competitive is the Austin housing market right now?

Competition in the Austin housing market has declined compared to previous years. As of August 2025, 69.34% of homes sold below list price, and only 12.30% sold above list—down from 13.21% a year ago. The average sold-to-list price ratio is 97.13%, indicating that most buyers are negotiating price reductions. Inventory levels are elevated, giving buyers more leverage and reducing urgency in most price ranges, especially outside premium or move-in-ready listings.

5. Is it a good time to buy a house in Austin, Texas?

Market conditions in August 2025 favor buyers more than in previous years. Inventory has increased 8.6% year over year, and Months of Inventory has reached 6.29—signaling less competition and more options. Median prices have declined slightly, and 70% of homes are selling below list. However, interest rates, personal financial readiness, and long-term ownership goals remain critical factors in timing a purchase. Market timing should always be evaluated in combination with financing conditions and individual circumstances.

6. What is the current supply of homes for sale in Austin?

The Austin-Area MLS has 17,516 active residential listings as of August 2025, compared to 16,136 a year ago—an increase of 8.6%. Within the City of Austin, active listings total 5,714, up 14.4% year over year. The Months of Inventory metric, which reflects how long it would take to sell all homes at the current sales pace, is at 6.29 months for the broader market and 6.69 months for the city—both well above the 2022 low-inventory conditions. This growing supply offers buyers more flexibility and choice.