April 2025 Market Update
Hi Friends! It’s Spring in the Austin market, but doesn’t quite feel like a normal Spring. Let’s take a look at what we’re seeing out there.
There’s a lot going on out there on a broader national economic level. And buyer demand is lower, but prices remain steady in the resale market. Mortgage rates have stabilized in the high 6%s, and we’re still optimistic on a local level.
High Level Summary:
Total units sold declined -14.3% Year Over Year (YOY), a considerable drop in seasonal demand this year.
Total dollar volume sold fell -14.3% YOY, which indicates that there were fewer transactions not falling prices.
Avg and Med Sold Prices remained largely flat YOY, with very slight softening.
Pending units remained steady, showing resilience despite increasing inventory.
New listings increased, pushing inventory higher and adding pressure to market balance.
Average and Median Pricing Remain Stable
Even though there was a considerable slowdown in sales volume, the average Sold Price in Austin was around $596K, and the Median Sold Price stayed right around $450K. The resilience in resale pricing is could be driven by sellers who are locked into low interest rates and unwilling to discount, which is keeping prices from falling significantly.
Sold Volume Declines with Fewer Transactions
With a -14% drop in the number of units sold, the market also experienced a steep decline in overall volume. This suggests that while buyer activity is slowing, the typical buyer is still purchasing at relatively unchanged prices. Lower volume is primarily a demand issue - not yet a pricing one.
Pending Sales Remain Strong
Pending sales did not decline as much as sold units, which in good news for the next month or two. Buyers are still active, just at a slower pace, and this could translate to more closings in the months ahead. This will be important to monitor in May and June.
New Listings Climb, Increasing Market Inventory
Inventory levels are on the rise, fueled by an uptick in new listings. This is typical for spring, but the increase is even more than last year, adding supply-side pressure. This means buyers have more choices, and sellers must remain competitive for a successful sale.
Jobs and Mortgage Rates Show Signs of Stability
Mortgage rates remained stable in the high 6% range throughout April, And job postings appear to have flattened, signaling a stabilizing labor market. These are key leading indicators that could influence future demand if rates ease further.
If You’re a Buyer
The good news is: there’s inventory. Buyers now have more choices than they’ve had in years, and pricing is stable. If you can afford today’s rates, this might be the best time in 2025 to buy before demand ramps up again (or before rates fall and competition spikes). Some lenders are still offering “free refi” programs, which could be a solid option if rates drop later this year.
If You’re a Seller
Sellers can still be successful in this market—but pricing and preparation are super important. Buyers are pickier and have more options, so homes that show well and are priced strategically are the ones that are selling.
Always remember that the best moves and investments in real estate always depend on your unique situation. We’d love to talk to you about your goals and how we can help. Please don’t hesitate to reach out!