March 2025 and Quarterly Austin Housing Market Recap
AUSTIN, Texas — January 2025 Austin MSA housing statistics from UnlockMLS:
857 – Residential homes sold, 8.9% less than March 2024.
$590,750 – Median price for residential homes, 5.5% more than March 2024.
2,125 – New home listings on the market, 17.3% more than March 2024.
4,363 – Active home listings on the market, 23.7% more than March 2024.
1,013 – Pending sales, 4.2% less than March 2024.
5.2 – Months of inventory, 0.9 months more than March 2024.
$665,174,058 – Total dollar volume of homes sold, 4.3% less than March 2024.
94.0% – Average close to list price, compared to 94.6% in March 2024.
MLS AUSTIN, Texas – In Q1 2025, residential home sales in the Austin-Round Rock-San Marcos metro area dropped 9.1% year-over-year to 6,698, according to the latest Central Texas Housing Report by Unlock MLS. The median sales price declined 2.3% to $429,869, while inventory rose to 5.3 months—indicating a shift toward a more balanced market.
March played a key role in shaping Q1 numbers, with a 9.3% drop in sales, a 9.5% increase in new listings, and flat median prices compared to March 2024.
Dr. Clare Knapp, housing economist for Unlock MLS and ABoR, cited affordability challenges, high interest rates, and a softer job market as factors dampening buyer activity and seller flexibility.
Active listings jumped 18.9% from Q1 2024, giving buyers more options and leverage, contributing to longer decision-making timelines.
2025 Unlock MLS and ABoR President Brandy Wuensch emphasized that today’s buyers are taking their time, focusing on long-term needs, and benefiting from expert guidance to make smarter, more deliberate choices.
Buyers Stay in Control: Get Incentives and Fast Deals on the Right Homes
Buyers remain in control during the first quarter of the Austin Real Estate market. It remains true that sellers are often offering incentives, including frequently covering part or all of the buyer's commission, based on our experience. That said, well-priced, renovated, and staged homes continue to sell relatively quickly. Our most recent listing had 11 showings, and was under contract in 4 days and sold for list price. This home was updated, staged, and priced properly showing the market's continued activity and focus especially on good homes. Homes that have been on the market for an extended period often present more flexibility in price and incentives.
Worth a note, after the new laws around realtor commission implemented August, 2024, we are still seeing most Sellers paying the Buyers agent commission. This is likely due Austin increasing supply of available properties, while buyer interest has maintained at a similar level.
At Wagner Real Estate, we have consistently been able to negotiate most or all of the buyer’s commission to be covered by the seller.
Stand Out to Sell: Why Preparation & Patience Is Key in Austin’s Competitive Market
In today’s competitive Austin real estate market, sellers must be proactive and strategic to stand out from the crowd. With increasing inventory and shifting buyer expectations, it’s no longer enough to simply list a home and hope for strong offers. Thoughtful property staging, targeted renovations, and timely repairs are essential to capturing buyer attention and maximizing value. Equally important is staying informed about macro trends across the greater Austin area—including suburban growth, fluctuating interest rates, and buyer migration patterns—which can all impact pricing and demand. By investing in your home’s presentation, allowing a proper timeline for marketing before going live, and staying market-aware, you position your property to rise above the noise and appeal to serious, qualified buyers.
Austin Commercial Real Estate Market Update
We’re going to highlight key industry trends for this month's commercial highlights.
Office Sector: Austin continues to experience elevated office vacancy rates, with a 6.5% year-over-year increase as of March 2025. This trend reflects ongoing supply-demand imbalances, particularly in tech-centric cities and Sun Belt metros.
Industrial Sector: The industrial real estate market remains robust, driven by Austin's growing tech economy and its role as a regional logistics hub. In 2024, industrial transaction volumes reached $872 million, indicating sustained investment in this sector. However, an oversupply of space has led to a softening of the market, with negative rent growth of -1.7% and current market rental rates ranging from $10 to $18 per square foot annually.
Data Centers: The demand for data centers in the Austin-San Antonio corridor has surged, driven by the increasing need for AI and cloud services. The region currently hosts 646 megawatts of data centers, with an additional 664 megawatts under construction and 1,229 megawatts planned. This rapid expansion is straining local power infrastructure, prompting significant investments to meet future demand.
Economic Indicators: Austin's economy remains strong, with the Business-Cycle Index growing at an annualized rate of 5.9% as of December 2024. The unemployment rate stands at a low 3.3%, and the labor force has expanded by 7.5% annually, outpacing state and national growth rates.
In summary, while the office sector faces headwinds, the industrial and data center markets offer growth opportunities. Investors and stakeholders should closely monitor these trends to make informed decisions in Austin's dynamic commercial real estate landscape.
If you're interested in more detailed information or specific sectors, please let us know and we would be happy to help.