Austin Area Housing Market Shows Flat Prices, Increased Inventory, Hopeful Trends Heading into Summer: Chuck Farr’s June 2025 Newsletter
These monthly reports are released from Unlock MLS and report on MLS-only data.
Welcome to Summer, homeowners, tenants, prospective buyers, and real-estate investors.
In the News: According to the May Central Texas Housing Report released by Unlock MLS, residential home sales across the Austin-Round Rock-San Marcos MSA showed “new listings in the Austin-Round Rock-San Marcos MSA rose 8.9% to 5,716 listings, increasing housing inventory to 5.0 months, 1.0 month more than May 2024…. At the same time, home sales dipped 3.8% to 3,021 sales, while the median sales price edged down 1.6% to $449,900. Despite modest declines in sales and prices, the market is showing signs of resilience as pending sales climbed 16.1% to 4,515—the strongest month of the year so far.
“Clare Knapp, Ph.D., housing economist for Unlock MLS and the Austin Board of REALTORS®, shared that the data reflects healthy market adjustments that could ultimately lead to more balanced conditions for buyers and sellers.
"‘At some point, a slowing market can motivate sellers to adjust prices to better align with what buyers can afford. We're seeing that dynamic begin to unfold in Central Texas. It's not that demand has disappeared—buyers still want homes here, but affordability remains a key factor. Many are waiting for the right opportunity or more favorable pricing. The notable increase in pending sales in May signals that buyer activity has picked up after a challenging first quarter. While higher mortgage rates continue to impact buyer confidence, these trends point to cautious optimism as we move into the summer.’
“Brandy Wuensch, 2025 Unlock MLS and ABoR president, noted that today’s market calls for strategic guidance from professional agents.
"‘We're seeing signs of a bounce-back this month, which is encouraging after a slower start to the year. Buyers and sellers alike should take advantage of this evolving landscape with the help of trusted real estate agents who can help them navigate opportunities and competitive pricing strategies. Central Texas continues to be a place where people want to live, but many are waiting for market conditions that match their financial readiness. Homes priced competitively are still selling well, which underscores the lasting power of homeownership as a tool for long-term financial stability and wealth-building.’
“Austin-Round Rock-San Marcos MSA [Entire Metro Area]
“May 2025 - For Sale
3,021 – Residential homes sold, 3.8% less than May 2024.
$449,900 – Median price for residential homes, 1.6% less than May 2024.
5,716 – New home listings on the market, 8.9% more than May 2024.
14,673 – Active home listings on the market, 17.4% more than May 2024.
4,515 – Pending sales, 16.1% more than May 2024.
5.0 – Months of inventory, 1.0 month more than May 2024.
$1,783,631,944 – Total dollar volume of homes sold, 4.3% less than May 2024.
94.6% – Average close to list price, compared to 95.4% in May 2024.
“May 2025 - For Lease
2,327 – Closed leases, 5.9% less than May 2024.
$2,295 – Median price for rent, 0.2% less than May 2024.
3,878 – New lease listings on the market, 1.5% more than May 2024.
4,774 – Active lease listings on the market, 0.5% less than May 2024.
2,714 – Pending leases, 1.3% more than May 2024.
2.1 – Months of inventory, 0.2 months more than May 2024
$4,914,639 – Total dollar volume of leases, 11.9% less than May 2024.
97.7% – Average close to list price, compared to 97.4% in May 2024.”
For folks in the Austin MSA area, if you had bought a house in 2018 at the median price of $305K, its value would have increased to $502K by the May 2022 peak. Median price for the MSA is now still nearly $450K, so you would have still done well investing in Central Texas real estate. Check the latest Central Texas Housing Report for more details and data for the city of Austin (Travis) and surrounding counties. You will see a wide range across the area, so check details in the report for where you live.
Summer Home Maintenance Tips: Summertime has its own home maintenance checklist in Central Texas, especially for existing property owners. Here are a few items to consider during June:
· Set your mower on the highest setting so you do not cut the grass too short and expose it to drought and weeds.
· Make sure your foliage gets plenty of water during hot summer days. Water early in the day, but not necessarily every day. Plants prefer a good soaking a few times a week rather than a light, daily drizzle.
· Reverse the setting on your ceiling fans to counterclockwise (search YouTube for how to do that). This pushes the air down, creating a nice breeze. Shut off fans when you leave the house to save electricity.
· Whether you have central air-conditioning or window units, you should clean or replace your filters at least once every other month (or more often if they are visibly dirty).
· Check the weather stripping around doors and windows to keep the cool air in. Cover windows that receive morning or afternoon sun with drapes.
· Increase your insulation in the attic to R-30 or more. Each month buy a little insulation until the job is done. Alternatively, consider adding in the new foam style insulation inside your walls and in the attic with the help of a professional.
When considering your real-estate needs and situation in the context of macro-level data, remember that your potential sale or purchase will always be hyperlocal. Let us know if we can help. Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com. Please DM or email me if you want your email added to my newsletter list.
