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Austin Market Update: What Buyers Need to Know in 2025

Interest rates, inventory levels, and what the data actually says.

ReadyFront Team·Market Analysis
·January 15, 2025·5 min read

The Numbers Right Now

Austin's real estate market has shifted. After years of explosive growth, we're seeing something closer to balance. Here's what the MLS data is actually showing:

**Inventory is up.** Active listings in Travis County are hovering around 4 months of supply—up from the sub-1-month chaos of 2021-2022. This gives buyers more choices and more negotiating room.

**Prices are stable.** Median home prices in the Austin MSA have plateaued around $450,000. We're not seeing the 20% year-over-year gains anymore, but we're also not seeing crashes.

**Days on market have increased.** The average home now sits for 45-60 days before going under contract. That's normal. The 3-day bidding wars were the anomaly.

What This Means for Buyers

If you've been waiting on the sidelines, this is a very different market than 2021. You have time to think. You can get inspections done. You might even negotiate on price.

The caveat: interest rates are higher than they were. A 6.5% rate on a $400,000 loan costs more per month than a 3% rate on a $450,000 loan. The math matters, and that's exactly why we built tools to help you run these scenarios.

Our Take

The Austin market isn't "crashing." It's normalizing. For buyers who want to actually live in their home (not flip it in 18 months), this is a healthier market to buy in.

Use the tools. Run the numbers. Know what you're getting into.

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