Austin Housing Inventory Hits Record High in 2025: What It Means

Austin Real Estate Sees Record High Active Listings as Supply Surge Continues

The Austin housing market is undergoing a significant transformation as active residential listings reach record highs in mid-2025. According to data from Team Price Real Estate, there are now 17,631 active listings across the Austin area, up 17.3% from 15,035 at this same time in 2024. This marks a new all-time high and illustrates the growing imbalance between supply and demand. These figures confirm that inventory is building faster than it is being absorbed, fundamentally reshaping market dynamics.

In addition to the spike in active listings, the number of new listings coming to market in 2025 is also setting notable records. From January through June, 27,054 new listings were added, which is 20.6% above the 25-year historical average. This is the strongest year-to-date new listing volume since 2008. The rise in listings is being driven by a combination of factors including seller urgency, changing interest rate expectations, and broader market uncertainty. However, despite the influx of inventory, buyer activity has not kept pace. Pending listings for the same period are down 15.4% year-over-year, totaling 20,496.

The imbalance between new listings and pending contracts has created the largest year-to-date supply-demand gap since 2004, with a difference of 6,558 units. The New Listing to Pending Ratio for 2025 currently stands at 0.66, significantly below the 25-year average of 0.81, and the monthly ratio for June has dropped to just 0.53. These figures reflect a slower rate of absorption, with homes taking longer to sell and more listings sitting on the market.

Another key indicator reflecting this shift is the Months of Inventory metric, which has climbed to 6.24. This represents an 18.8% increase over the same time last year when inventory stood at 5.26 months. While some analysts consider six months to be the threshold for a buyer’s market, Team Price Real Estate uses a more conservative benchmark of seven months to indicate clear buyer advantage across the market. At 6.24 months, Austin is on the edge of transitioning into a full buyer’s market, though conditions vary significantly by location.

Real estate in Austin remains highly localized. Among the top 30 cities tracked, 14 are currently in a buyer’s market, 11 are neutral, and only 5 remain seller-favorable. At the ZIP code level, the trend is similar: 27 out of the top 75 ZIP codes are now in a buyer’s market, 28 are neutral, and 20 still show signs of seller-favorable conditions. This distribution underscores the need for hyperlocal analysis when evaluating market conditions, as averages alone may not reflect what’s happening in specific neighborhoods or price segments.

Price trends are also confirming this market softening. The median sold price in June 2025 is $470,000, down 14.6% from the peak of $550,000 in May 2022. The average sold price has also declined to $607,210, marking a 10.96% drop from the 2022 high of $681,939. While prices have corrected from their highs, the ongoing increase in supply is likely to continue putting downward pressure on pricing in the near term.

The Activity Index—a proprietary measure from Team Price that gauges buyer activity relative to total inventory—currently sits at just 20.9%, down from 24.2% a year ago. A reading below 30% reflects low absorption and further supports the buyer-leaning conditions seen across the region. Complementary metrics like the Market Health Index (20.0%) and Inventory Stress Index (7.0%) point to similar conclusions. Both suggest that buyer leverage is increasing, and sellers must now compete more aggressively on price and concessions to attract interest.

In summary, the Austin housing market in 2025 is defined by rising inventory, a slowdown in buyer demand, and weakening price appreciation. While the region is not yet uniformly in a buyer’s market by the strictest definition, the trends indicate a continued shift in that direction. For buyers, this presents more choice and negotiating power. For sellers, it underscores the importance of pricing competitively and understanding local market nuances. Market watchers and participants alike should keep a close eye on these developing trends as Austin navigates this new cycle of supply-heavy conditions.

FAQ: Austin Housing Market – June 2025

1. Why are active listings in Austin hitting record highs in 2025?
Active listings in Austin reached 17,631 in June 2025, setting a new all-time high. This rise is largely due to a surge in new listings—20.6% above the 25-year average—paired with weaker-than-expected buyer demand. More sellers are entering the market amid rising inventory and shifting expectations, but pending sales have not kept pace, leading to elevated supply levels.

2. Is Austin in a buyer’s market right now?
Austin is on the edge of a buyer’s market, with Months of Inventory at 6.24. While some use six months as the cutoff, Team Price defines a buyer’s market more conservatively at seven months to avoid premature classification. At the city level, 14 of the top 30 cities are already in a buyer’s market, as are 27 of the top 75 ZIP codes. This localized variation shows the market is transitioning unevenly across the region.

3. What does the New Listing to Pending Ratio mean, and why is it important?
The New Listing to Pending Ratio measures how many homes are listed versus how many go under contract. A higher ratio indicates rising supply or weakening demand. For June 2025, the monthly ratio is 0.53 and the YTD ratio is 0.66, both well below the long-term average of 0.81. This suggests listings are accumulating faster than buyers can absorb them, putting pressure on sellers and pricing.

4. How much have Austin home prices dropped since the 2022 peak?
The median sold price in Austin has declined from $550,000 in May 2022 to $470,000 in June 2025, a 14.6% drop. The average sold price has fallen 10.96%, from $681,939 to $607,210. These declines are consistent with the broader market correction brought on by oversupply and slower absorption.

5. Will housing inventory continue to increase in Austin through the rest of 2025?
While it's difficult to predict precisely, current trends suggest inventory may continue to climb unless buyer demand picks up significantly. The first half of 2025 has already seen new listings outpace historical norms, and pending sales remain well below 2024 levels. If these patterns hold, Months of Inventory could exceed 7.0 later this year, confirming a full buyer’s market.​