As of May 2025, the Austin real estate market presents a mixed bag for prospective buyers. Here’s a breakdown of the current landscape:

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✅ Pros of Buying in Austin Right Now

1. Significant Price Corrections

Austin has experienced notable price declines, with median home prices dropping approximately 25% from their peak in April 2022. As of March 2025, the median price stands around $429,000, offering a more accessible entry point for buyers compared to recent years. (erin.teamprice.com)

2. Increased Inventory and Negotiation Leverage

Active residential listings have risen by 16.9% year-over-year, reaching over 12,000 homes. This surge in inventory provides buyers with more options and bargaining power. Notably, 42.6% of active listings have seen price reductions, indicating sellers’ willingness to negotiate. (erin.teamprice.com, Norada Real Estate, Robert)

3. Builder Incentives

New construction homes are offering attractive deals, including mortgage rate buy-downs and closing cost incentives. Some builders are providing mortgage rates as low as 4.5% and up to $50,000 in incentives to attract buyers. (austinknighthomes.com)

4. Cooling Rental Market

Median rent prices in Austin have decreased by 9.6% year-over-year, now at $1,399. This decline, the steepest in the nation, suggests a shift in the housing market dynamics, potentially making homeownership more appealing in the long term. (MySA)

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❌ Cons of Buying in Austin Right Now

1. High Mortgage Rates

Interest rates remain elevated, hovering between 6.5% and 7%. These rates can significantly impact monthly payments and overall affordability, especially for first-time buyers. (austinknighthomes.com)

2. Longer Time on Market

Homes are taking longer to sell, with an average of 89 days on the market. This extended timeframe can be indicative of a cooling market and may affect investment liquidity. (seth.teamprice.com)

3. Potential for Further Price Declines

While prices have already corrected, there’s a possibility of continued declines. Some forecasts suggest a modest decrease of about 0.4% over the next year, indicating that the market hasn’t fully stabilized yet. (MySA, Norada Real Estate)

4. Competition from New Builds

The influx of new construction homes, which comprise about 30.5% of active listings, presents stiff competition for resale properties. These new homes often come with incentives that can make them more attractive to buyers. (seth.teamprice.com)

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🔍 Final Thoughts

The Austin housing market in 2025 offers opportunities for buyers, particularly those looking for deals and willing to navigate the challenges of higher interest rates and a market in flux. If you’re considering a purchase, it’s crucial to assess your financial readiness, stay informed about market trends, and be prepared to act when the right opportunity arises.

• MySA
• Axios
• MySA