The Austin-Round Rock metro area is currently a buyer’s market, and it has been for a couple of years. This means that there are more homes for sale than there are buyers seeking them.
But we expect the market to shift toward neutral territory during the second half of 2025. This means buyers could lose some of the negotiating advantage they have right now.
Mid-2025 could be the best time to buy a home in the Austin area. Buyers could soon have an opportunity to purchase at the “bottom” of the market, before things heat up again.
Current Housing Market Conditions
Here’s what to know about the Austin housing market in spring 2025:
- The median home price in the Austin area is currently around $446,000.
- Prices declined by 3.4% over the past 12 months, according to Zillow.
- Prices have been falling steadily since the summer of 2022.
- As of March, this market had a healthy 5.5-month supply of homes for sale.
- Austin-area home buyers currently have plenty of listings to choose from.
- Homes are spending a median of 88 days on the market before being sold.
- The typical “time on market” for Austin is much longer than most U.S. cities.
In short: The Austin metro area real estate market is moving at a slow pace in the spring of 2025, with home prices following a downward trajectory.
Austin Still a Buyer’s Market in Spring 2025
Austin is currently experiencing a buyer’s real estate market and has been for some time. There are plenty of properties for sale, but not enough buyers to absorb them.
According to Realtor.com: “Austin, TX is a buyer’s market in February 2025, which means that the supply of homes is greater than the demand for homes.”
And according to Redfin: “The Austin, TX housing market is not very competitive [in March 2025], scoring 28 out of 100.”
Here is some data-based evidence that supports these assessments:
1. There’s a surplus of homes for sale in the Austin area.
As mentioned above, the Austin-Round Rock metro area currently has more housing market inventory than most cities across the U.S. This gives buyers more options to consider and more negotiating leverage as well.
2. Homes are taking a long time to sell.
As of March 2025, homes listed for sale in the Austin area spent a median of 88 days on the market before going under contract. That was much longer than the national median of 55 days. A sluggish pace of sales typically indicates a buyer’s market.
3. Most properties are selling at or below the list price.
In a hot seller’s market, we usually see a high level of homes selling for more than the list price. This happens when multiple buyers attempt to outbid one another. In early 2025, only about 10% of Austin-area homes sold above the list price, also indicative of a buyer’s market.
4. Home prices are still falling in 2025.
Home values in the Austin metro area have been declining for nearly three years now, ever since the current downturn began back in 2022.
According to a March 2025 Zillow report:
“Home values are down from year-ago levels in 11 major metro areas. The largest drops were in Austin (-3.8%), Tampa (-3.6%), San Antonio (-2%), New Orleans (-1.7%), and Phoenix (-1.6%).”
When prices decline steadily, it shows there are more properties for sale than people waiting to buy them. House hunters have more choices and less competition, so sellers have to cut their prices to attract them.
Zillow: Austin Has Shifted to a ‘Neutral’ Market
While home prices in the Austin area are still falling, the rate of decline appears to be slowing. We expect home prices to hit bottom later this year, level out for a period, and then start rising gradually again.
That’s the first major shift that could occur later in 2025.
The Austin real estate market could also shift from being a strong buyer’s market to a more balanced one that doesn’t strongly favor either side.
In fact, some analysts believe this second shift has already occurred. Zillow’s housing market “heat index” currently has the Austin-Round Rock metro area moving into neutral territory.
Over the coming months, we will probably see a very gradual uptick in the number of home sales across the Austin metro area. The pace of home sales will likely pick up as well.
Home buyers who have been waiting on the sidelines for months are starting to realize that mortgage rates won’t drop significantly anytime soon. So they’re starting to re-enter the market, a trend that will likely accelerate later this year.
How Buyers Benefit From These Conditions
As stated, Austin real estate market conditions currently favor sellers rather than buyers.
But what does this actually mean?
Here are three ways buyers can capitalize on this trend.
1. Finding a home that meets your needs
The current surplus of homes for sale allows buyers to be more selective when house hunting. They can take more time to explore neighborhoods, compare properties, and conduct price research.
In a slow-paced market with plenty of inventory, buyers are more likely to find a home that checks their boxes and falls within budget.
2. Negotiating the sale price and terms
The combination of a home surplus and longer selling times gives buyers in places like Austin, Round Rock, and Cedar Park extra negotiating leverage.
Sellers realize that the market has cooled and that it takes longer to sell a home these days. So they’re often more willing to negotiate over the price and other aspects of the sale.
3. Requesting concessions and contingencies
Austin home buyers can also leverage current market conditions to request concessions from sellers. This could include asking the seller to cover some of the closing costs, make specific repairs, or include appliances or furniture in the sale.
Buyers can also feel more comfortable adding contingencies to their offers. Contingencies are real estate clauses that get buyers additional protection, like a home inspection contingency.
Buying a Home at the ‘Bottom’ of the Market
There’s a real estate concept known as the “bottom” of the market. This is the point in a real estate cycle when prices have reached their lowest level before beginning to rise again.
The bottom typically occurs after a period of declining prices, reduced demand, and higher inventory—characteristics the Austin area is experiencing right now.
Entering the market at the bottom of a cycle means that home buyers can secure properties at lower prices, before values start to rebound.
Based on current supply-and-demand conditions, we believe the Austin metro area will hit bottom and begin to rebound near the middle of 2025.
Disclaimers: The market predictions and forecasts in this report are based on current data and trends but are inherently uncertain. They represent an informed analysis rather than a guarantee of future outcomes. Readers should conduct their own research and consult professionals before making financial decisions.
Brandon Cornett
Brandon Cornett is a veteran real estate market analyst and reporter. He has been covering the U.S. real estate market for nearly 20 years. More about the author