Austin Real Estate Update: Prices Are Falling Faster Than New Listings Are Growing
In a surprising shift for the Austin real estate market, we’re witnessing an unusual trend: home prices are decreasing faster than new listings are hitting the market — even though we’re currently seeing record-breaking inventory levels.
Inventory at an All-Time High
Let’s start with the basics. This is the most listings in 3 years. That’s great news for buyers who have more choices than ever. But for sellers, it introduces new pressure. With more competition on the market, properties that aren’t priced correctly or don’t stand out are sitting longer and getting passed over.
Prices Are Dropping Fast — Here’s Why
Despite the high inventory, price reductions are happening at a faster pace than new listings. What does that mean?
- Sellers are chasing the market down. Many homes initially hit the MLS overpriced based on past market performance, but buyers today are more cautious and price-sensitive.
- Increased days on market push sellers to reduce prices sooner than planned, sometimes multiple times.
- Interest rates remain elevated, reducing buyers’ purchasing power and keeping pressure on sellers to adjust quickly.
What This Means for Buyers
This environment is full of opportunity. Buyers have the upper hand in many negotiations and can afford to be patient, especially as more homes get listed and prices continue to soften.
Tip for buyers: Keep an eye on homes that have been sitting for 30+ days — there may be room to negotiate even further.
What This Means for Sellers
Sellers need to be strategic and realistic. Listing at yesterday’s prices won’t cut it. You only get one chance to make a first impression. If you’re serious about selling in this market:
- Price it right from day one.
- Invest in strong marketing and staging to stand out.
- Be ready to adjust quickly if your home isn’t getting traffic or offers.
Working with a knowledgeable local broker can help you avoid the costly mistake of chasing the market.
But, lets not forget, that sellers also made significant increases in their homes, if they owned in the past 5 years.
Let’s look at what’s actually happened with home prices in the Austin area:
- From 2019 to 2020, home prices rose about 6.4%
- From 2020 to 2021, they jumped a massive 30.8%
- From 2021 to 2022, prices still climbed another 11.2%
- From 2022 to 2025, prices have cooled slightly, but the median home value in 2025 is still sitting around $512,500 — down less than 1% from the previous year
Bottom line: If you’re selling in 2025, you’re likely way up from where you started — especially if you bought before or during the early pandemic years. Even with recent softening, your equity gains are still substantial. So take that into account, when selling. You need to normalize or weight those pandemic years into the overall sales price.
Final Thoughts
Even in a city as resilient and dynamic as Austin, markets shift — and this one is clearly signaling a new direction. While listings continue to pour in, prices are falling even faster. Whether you’re buying or selling, having a strategy rooted in data and timing is everything.
If you’re considering a move in 2025, now is the time to reassess your game plan. We just viewed a blanket of data for the greater Austin area, so its important to deep dive into your neighborhood. Let’s talk about what this market means for you. I’d be happy to discuss, even if your not looking to sell or buy anytime soon.
