Austin Real Estate Market Update – May 14, 2025
Inventory Holds Near Peak as Buyer Activity Stalls
Austin’s housing market update for May 14, 2025, continues to reflect strong listing activity paired with lagging buyer demand. The MLS reports 16,577 active residential listings, up 19.4% from this time last year and just 39 listings below the all-time high. Within Austin city limits, inventory has climbed to 5,257 active listings, a 20.4% annual increase. This supply buildup is part of a larger trend: year-to-date new listings are running 18.9% above average, indicating a consistent influx of homes onto the market.
However, demand is failing to keep pace. There are 5,053 pending properties, down 0.4% from May 2024. The New Listing to Pending Ratio sits at 0.50, meaning only one in every two new listings is converting into a contract. The Activity Index has dropped to 23.4%, a 13.7% year-over-year decline, and pending contract volume is 7.3% below seasonal norms—all signs of restrained buyer momentum.
The result is an expanding gap between listings and sales. Months of Inventory has risen to 5.91, up from 4.74 one year ago, a 24.6% YoY increase. In the City of Austin, MOI has jumped from 4.36 to 6.04, a 38.6% increase, positioning many submarkets in a neutral or soft buyer’s market. In some outer areas, such as Marble Falls, Dale, and Lago Vista, inventory levels now exceed 11 months, reflecting localized demand challenges.
Despite the growing inventory and slower sales velocity, pricing remains relatively firm. The median sold price for May 2025 is $478,500, up $23,505 or 5.2% from $454,995 in May 2024. This appreciation appears concentrated in specific price bands and high-demand neighborhoods. Meanwhile, broader indicators such as sales per capita, still 33.7% below trend, suggest that many buyers remain on the sidelines—possibly constrained by affordability or awaiting more favorable market conditions.
Most of the strength in the market is concentrated in select price segments and well-positioned homes, while the broader environment is one of rising supply, extended time on market, and increased selectivity among active buyers.
Scroll down to view the full Austin Daily Real Estate Briefing PDF for May 14, 2025
Austin Real Estate Market – Frequently Asked Questions
What is the current state of the Austin housing market in May 2025?
As of May 14, 2025, the Austin housing market remains characterized by rising inventory and softening buyer activity. There are 16,577 active residential listings across the MLS—up 19.4% year-over-year and just shy of a record high. Meanwhile, buyer demand is lagging, with only 5,053 pending listings, a 0.4% decrease from this time last year. The New Listing to Pending Ratio is now 0.50, and the Activity Index sits at 23.4%, down 13.7% compared to May 2024. This gap between listing volume and contract activity reflects a market where sellers are competing for limited buyer attention.
How much housing inventory is available in the City of Austin right now?
The City of Austin currently has 5,257 active listings, a 20.4% increase over May 2024. The Months of Inventory (MOI) for Austin has climbed to 6.04, up from 4.36 one year ago—representing a 38.6% year-over-year increase. This marks a meaningful shift toward buyer-friendly conditions, with longer market times and more options available across most price segments. Several outlying areas, such as Marble Falls, Dale, and Lago Vista, have surpassed 11 months of inventory, indicating substantial supply relative to demand.
What does a New Listing to Pending Ratio of 0.50 mean for buyers and sellers?
A New Listing to Pending Ratio of 0.50 means that for every two new listings entering the market, only one is going under contract. This suggests that listing activity is outpacing buyer demand, leading to an oversupplied market. For sellers, this typically results in extended time on market, increased need for price reductions, and stiffer competition. For buyers, it creates leverage—more choices, more room to negotiate, and less urgency to act immediately.
Is buyer activity increasing or decreasing in the Austin real estate market?
Buyer activity is decreasing. The Activity Index, a measure of contract velocity, has dropped to 23.4%, compared to 27.1% in May 2024. That’s a 13.7% decline in buyer engagement year-over-year. In addition, pending contracts are running 7.3% below the seasonal average, indicating that buyer hesitancy is widespread, even as listings flood the market. The result is a slower pace of absorption, shifting the market toward a more balanced or buyer-driven environment.
How are Austin home prices trending in May 2025?
Despite rising supply and subdued demand, prices have shown resilience. The median sold price for May 2025 is $478,500, up $23,505, or 5.2%, from $454,995 in May 2024. This appreciation appears concentrated among well-priced, move-in-ready homes in prime locations, while properties outside those parameters may experience pricing pressure. However, sales per capita are still 33.7% below average, revealing that the pricing strength is not broad-based and that many would-be buyers remain cautious or priced out.
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