Austin Real Estate Market Update – March 2025

Let’s take a look at what we saw in the Austin area in March 2025.

It’s a bit of a weird time in the market in general. But as a reminder, real estate always really depends on your specific situation, your neighborhood, and your goals, so please reach out if you’d like to chat about what this market would mean for you.

In March, our total sales declined by 10.5% versus last year, but total contracted and pending homes declined by only 2.5%.

New listings ticked up 9.3% which drove total active listings up 16.5% vs last year, making months of inventory 5 months. Withdrawn and expired listings were up 14.1%.

So what does this mean? It means that we're seeing a market where demand seems to be decreasing a bit and supply is increasing a bit. This is favorable for buyers and it means that sellers will want to be very mindful of their strategy, marketing, and pricing.

The good news is that pricing does remain stable. Average sold prices and median sold prices are almost the same, year over year. So at this time, it is fair to say that pricing has remained stable for the past 18 months.

The average days on market for sellers is now 95 days, so when selling, that is the expectation you should have, delending on area.

While this is still technically considered a balanced market, it feels like a buyers market here and buyers have more leverage.

So while there was a decrease in total sales numbers in March, the total under contract and pending units declined only by 2.5%, and we generally focus more on pending units than total sales because pending units will tell you what the total sales will be in the next 30 to 60 days.

Similarly, we were not surprised by the decline in total sales in the month of March because we saw that coming based on the under contract and pending units in February.

Lagging indicators are looking backwards - like total sales and average price. While leading indicators look forward at what is to come to see the direction the market is headed.

Buyers and sellers usually care the most about median and average sold price, and since it’s been so flat and stable, it indicates that it IS a safe time to buy or sell.

As far as pending units, we started the month theut pretty sluggish, and the trend still follows the normal seasonality. We will likely see the most buyer demand in the spring and early summer months, and then as summer ends and school starts back, it will start declining.

We have seen more new listings hit the market this year than we did in 2024. And while this seems like supply, it also shows us an early sign of demand since most sellers are also entering the market and do become buyers as well.

It’s super important for sellers to look at their pricing strategy. Consumer confidence declined in February and it declined again in the month of March. Consumers are looking for more stability in the general economy. We've also seen mortgage rates go down a bit, but they have recently ticked back up.

While there's quite a bit of uncertainty in the economy in general, we love to sit down and focus on your goals and what is most important to you and your family. Please reach out, we’d love to chat!