Austin Real Estate Weekly Market Update - January 02, 2025

by: Team Price Real Estate, Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, January 02, 2025 at 6:23 am

As we welcome a new year, Team Price Real Estate is more committed than ever to providing you with the latest and most comprehensive Austin real estate market statistics. Our weekly updates and daily refreshed reports ensure you have accurate, actionable insights at your fingertips. This unwavering dedication to real-time data empowers buyers, sellers, and agents to confidently navigate Austin's dynamic market. Let 2025 be your year of informed decisions and real estate success, with Team Price by your side every step of the way. 

Updated Market Overview

As we move into 2025, the Austin-area real estate market continues to show a steady increase in activity. The total number of active listings in the Austin-area MLS has risen to 11,257, reflecting a 6.91% increase from last year’s 10,529 listings. Months of Inventory has grown to 3.92 months, up from 3.66 months in 2024, representing a 7.21% increase. This slight rise in inventory indicates a moderate shift in the supply-demand balance. Within the City of Austin, active listings have increased by 2.46%, from 2,808 in 2024 to 2,877 this year. Months of Inventory in the city has remained relatively steady, showing a slight decrease from 3.42 months to 3.41 months.

Pricing Dynamics in Austin Real Estate

Home prices across the Austin-area MLS have shown consistent growth year over year. The average list price for active homes is now $589,453, a 5.16% increase from $560,528 last year. Similarly, the median list price has risen to $449,990, a 1.12% increase from $445,000 in 2024. The average sold price currently stands at $566,442, reflecting a 5.42% increase from $537,297 last year. The median sold price has climbed to $439,000, showing a 2.09% rise from $430,000. In the City of Austin, prices have grown at a higher rate. The average list price for active homes is now $799,789, a 7.70% increase from $742,578. The median list price has risen to $599,000, a 7.45% increase from $557,450. The average sold price in Austin is now $765,818, a 7.69% increase from $711,136 last year. The median sold price has reached $576,500, a 6.27% increase from $542,500 in 2024.

City and Regional Dynamics

Market trends across Austin-area cities continue to show diverse activity. Among the 30 cities in the Austin-area MLS, 56.67% experienced month-over-month price increases, while 43.33% saw declines. On a year-over-year basis, price growth and declines were evenly split, with 50% of cities recording increases and 50% reporting decreases. Over the past 12 months, all 30 cities have seen declines from their peak values. When examining the 75 zip codes across the Austin area, 58.67% recorded month-over-month price increases, while 41.33% reported declines. On a year-over-year basis, 48% of zip codes experienced price increases, while 52% saw declines. Over the past 12 months, one zip code has shown an increase from its peak value, while 74 have seen declines.

Central Texas Cities and Zip Code Analysis

Inventory levels and price trends continue to vary across Central Texas cities and zip codes, reflecting the nuanced nature of the real estate market in the region. In the Austin-area MLS, 56.67% of the 30 cities experienced month-over-month price increases, while 43.33% saw declines. On a year-over-year basis, price trends were evenly split, with 50% of cities recording increases and 50% reporting decreases. Over the past 12 months, all 30 cities have seen declines from their peak values, highlighting the continued adjustment in pricing across the region. When examining the 75 zip codes in Central Texas, 58.67% reported month-over-month price increases, while 41.33% experienced declines. Year-over-year, 48% of zip codes recorded price increases, while 52% saw declines. Notably, only one zip code has shown an increase from its peak value in the past year, while 74 have seen declines. 

Sales vs. List Price Analysis

Buyer activity in the Austin-area MLS continues to emphasize negotiations in pricing. So far this month, 72.05% of sold properties have closed below their list price, an increase from 68.29% last month. Properties selling at list price accounted for 17.75% of transactions, down from 21.88% last month. Meanwhile, 10.20% of sold properties closed above their list price, a slight rise from 9.83% last month. The average sold price to list price ratio currently stands at 96.79%.

Peak Value Analysis: Austin-Area MLS

Over the past 12 months, prices in the Austin-area MLS have continued to adjust from their peak values. The average list price peaked at $708,929 in March 2023 and has since declined by 15.25% to $600,808. The median list price reached its highest point of $539,900 in May 2022 and has dropped by 21.28% to $425,000. The average sold price peaked at $664,515 in May 2022 and has decreased by 14.47% to $568,329. The median sold price has fallen 18.22% from its peak of $538,000 to $439,990. The average sold price per square foot has dropped 22.22% from $324 to $252, while the median price per square foot has declined by 22.86% from $280 to $216.

Peak Value Analysis: City of Austin

Price adjustments in the City of Austin have been more moderate compared to the broader Austin-area MLS. The average list price peaked at $945,555 in April 2024 and has since decreased by 9.86% to $852,281. The median list price reached its highest point of $658,589 in May 2022 and has dropped by 11.93% to $580,000. The average sold price peaked at $847,583 in May 2022 and has declined by 9.23% to $769,336. The median sold price has fallen 14.88% from its peak of $680,000 to $578,825. The average sold price per square foot has dropped 21.27% from $442 to $348, while the median price per square foot has decreased by 23.92% from $393 to $216

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Closing Thoughts

The Austin real estate market is displaying steady signs of stabilization as it transitions into 2025. Increased inventory, measured price growth, and shifting buyer dynamics are fostering a more balanced market environment. These developments offer key insights for buyers and sellers navigating today’s conditions. Staying informed about the latest market trends is essential for strategic decision-making in this evolving landscape. This comprehensive report, spanning over 800 pages, provides an in-depth analysis of the Austin real estate market, focusing on critical elements such as market cycles, affordability, and interest rates. Team Price Real Estate leverages its expertise and data-driven approach to deliver unparalleled service, embodying its mission of "Where Experience Meets Insight" in the Austin real estate market.