August 2025 Austin Housing Market: Leaning Buyer’s Market, Price Stabilization, and What’s Ahead
Recent data shows the Austin housing market is shifting — inventory remains elevated, prices are holding steady (or softening slightly in some segments), and buyers are gaining more leverage. Let’s dig into the August 2025 update and what it means if you’re buying, selling, or watching.
Market Snapshot & Trends
Inventory continues to rise, though it may have ticked down slightly from midsummer peaks. As of mid-September, there were ~16,950+ active residential listings, which is ~15 % higher than at the same time last year. teamprice.com+1
More than half of current listings have already had at least one price reduction, signaling sellers are adjusting to what buyers are willing to pay. teamprice.comPending sales weaker in some areas: Pending listings are down slightly year-over-year in September, indicating that buyer urgency has eased. teamprice.com
Price trends: stabilizing below past highs.
The average sold price is around $565,000, roughly 17.1% below the May 2022 peak. teamprice.com+1
The median sold price is about $435,000, down ~20.9% from that same peak. teamprice.com
Homes in the bottom 25% (entry-level) are experiencing declines (~4-5%), while homes in the top 25% have held up or increased modestly in certain sub-markets. teamprice.com+1
Market leaning toward buyers. With nearly six months of inventory in many areas and lots of competition among sellers, buyers are getting more leverage. Sellers (or those hoping to sell soon) will need to be more strategic: pricing carefully, presenting well, possibly offering incentives. CultureMap Austin+1
Affordability remains a concern. Even though prices have dropped from earlier highs, many entry-level buyers still find constraints from mortgage rates, down payments, and overall cost of ownership. This is suppressing demand somewhat at lower price points. Realtor+1
What It Means for You
🏡 For Buyers
More options than in recent years — more listings, less frantic competition.
Greater room for negotiation, especially in lower and mid-price tiers.
It might be a good time to act if you’re seeing something you like because supply could tighten going into winter.
Keep an eye on mortgage rate movements and local incentives (builders or resale) — these can tilt the balance.
🏠 For Sellers
Pricing strategy is more important than ever. Overpricing risks leaving your home on the market too long or forcing large price drops later.
Presentation matters: strong visuals, staging, and minor updates can make a difference.
If you aren’t in a high-end segment or a highly desirable neighborhood, be prepared to negotiate.
If you can wait, spring 2026 may bring more competition among buyers again — but don’t count on huge price jumps.
Looking Ahead: What to Watch in Fall & Spring
Mortgage rates — any meaningful drop could energize buyer demand.
Seasonal cooling — usually after Labor Day things slow down; this year likely won’t be an exception.
Inventory trends — how quickly listings come off the market, or conversely accumulate, will shape whether it tips further toward buyers.
New home construction & builder incentives — many builders are adjusting strategies; incentives may become more common.
Affordability policies or local economic developments (job growth, new employers, infrastructure) that could impact demand.
Bottom Line
The Austin market in August 2025 looks more balanced than it has in a long time — the power is shifting more toward buyers, especially in lower price brackets. Prices are stable for now, but the gap between what sellers want and what buyers will accept is more visible. If you’re a buyer, you have better negotiating room than recent years. If you’re a seller, strategy and realism are the name of the game.
If you like, I can put together a clean “infographic version” of this summary or pull data for specific ZIPs or neighborhoods so your audience can see what’s happening closer to home.