šŸ” Austin Housing Market Update – August 2025

Are we in TROUBLE?

The Austin housing market in August 2025 is showing signs of stabilization, but it’s far from the frenzied pace of the pandemic boom. With more inventory, longer days on market, and a modest uptick in efficiency, the market is in a transitional phase that offers both opportunities and challenges for buyers and sellers.

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šŸ“Š Key Market Stats – August 2025

Metric

August 2025

Year-over-Year Change

Median Sales Price

$449,900

0% (flat)

Closed Sales

2,823

+2.8%

Pending Sales

2,706

+3.5%

Active Listings

15,360

+18.2%

New Listings

4,562

+4.8%

Months of Inventory

5.5

+0.7 months

Average Days on Market

72

+18 days

Average Close-to-List Price

93.9%

Down from 94.8%

Market Flow Score

5.04

Up from 4.46 in July

🧐 What’s Driving the Market Right Now

1. Price Stability

After years of rapid appreciation, Austin’s median sales price has leveled off. This plateau suggests the market is finding its footing after the correction that began in 2022.

2. Inventory Surge

Active listings are up more than 18% year-over-year, giving buyers more choices and reducing the urgency that fueled bidding wars in past years.

3. Longer Selling Timelines

Homes are taking an average of 72 days to sell — nearly three weeks longer than last year. Sellers need to be strategic with pricing and presentation to stand out.

4. Efficiency Improving, But Not Booming

The Market Flow Score — a measure of how quickly and efficiently homes are selling — rose to 5.04 in August, the highest so far in 2025. While that’s a positive sign, it’s still well below the 7.5+ range that typically signals a strong price rebound.

5. Balanced-to-Buyer-Leaning Conditions

With 5.5 months of inventory, Austin is hovering near a balanced market. Homes under $400,000 remain in a normal seller’s market, but higher price points are more competitive for sellers.

šŸ’” What This Means for Buyers and Sellers

  • For Buyers: More inventory and stable prices mean you can take time to evaluate options, negotiate repairs, and avoid overpaying.

  • For Sellers: Pricing right from the start is critical. Overpricing can lead to extended days on market and lower final offers.

  • For Investors: The market’s efficiency uptick could signal early momentum. Watching the Market Flow Score in coming months will be key to timing purchases.

šŸ“ Local Outlook

Austin’s tech-driven economy, population growth, and cultural appeal remain strong long-term fundamentals. While the market is slower than in its peak years, the current environment offers a healthier, more sustainable pace — and a chance for both sides to make thoughtful moves.

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