The Austin and Central Texas residential real estate market has undergone a dramatic shift over the past four years. Using Austin ABOR MLS data from 2022 through 2025, we can clearly see the transition from an overheated seller’s market to a more balanced — and at times buyer-friendly — environment. Below is a closer look at key indicators, with a year-over-year comparison of the most recent data.
Year-over-Year Comparison: December 2025 vs. Prior Years
In December 2025, the median sales price reached $435,000, compared to $450,000 in December 2024 and $457,426 in December 2022. This represents a modest rebound from 2024 but remains meaningfully below the market peak of late 2022.
Closed sales in December 2025 totaled 2,514 transactions, up from 2,303 in December 2024 and slightly above 2,435 in December 2022, indicating renewed buyer engagement despite higher inventory levels.
Sales dollar volume climbed to $1.43 billion, improving from $1.33 billion in December 2024 and exceeding $1.35 billion in December 2022, supported by higher transaction counts rather than price appreciation alone.
Months of inventory stood at 4.2 months, higher than 3.8 months in December 2024 and significantly above 2.7 months in December 2022, signaling a structurally more balanced market than in prior years.
Median Sale Price Trend: Cooling, Then Stabilization
Median sale prices peaked in early-to-mid 2022, topping out near $550,000, before entering a prolonged correction through 2023 and early 2024. Throughout 2024 and 2025, prices largely stabilized in the $430,000–$450,000 range.
This pattern suggests the market has found a new pricing equilibrium. While prices remain well above pre-pandemic levels, the rapid appreciation phase is clearly over, replaced by gradual, fundamentals-driven movement.
Months of Inventory: A Shift Toward Balance
One of the most telling indicators is months of inventory. In early 2022, inventory hovered below 1 month, reflecting extreme seller leverage. By late 2023, inventory had climbed into the 3–4 month range, and in 2024–2025 it frequently exceeded 5 months, peaking above 6 months in parts of 2025.
December 2025’s 4.2 months of inventory suggests a healthier, more balanced market — one where buyers have choices and sellers must price strategically.
Closed Sales Trend: Recovery Without Frenzy
Closed sales volumes dropped sharply in 2023 as higher mortgage rates sidelined buyers. However, transaction activity gradually recovered through 2024 and strengthened further in 2025.
The fact that December 2025 closed sales exceeded both 2024 and 2022 levels indicates that buyers have adapted to higher rates, especially as price expectations reset and inventory expanded.
New Listings Trend: Supply Continues to Build
New listings surged in 2022 as sellers rushed to capitalize on peak pricing, then moderated in 2023. In 2024 and 2025, new listings remained consistently elevated, with 1,905 new listings in December 2025, compared to 2,070 in December 2024 and 1,828 in December 2022.
More importantly, active listings reached 10,372 in December 2025, significantly higher than prior years. This ongoing supply buildup reinforces the shift away from a seller-dominated market.
Conclusion: A More Mature, Balanced Market Emerges
The Austin and Central Texas housing market in 2025 looks fundamentally different from the frenzy of 2022. Prices have corrected and stabilized, inventory has normalized, and buyers and sellers are operating in a more rational environment. While the era of rapid appreciation has passed, increased transaction activity and steady pricing suggest a resilient market grounded in long-term demand rather than speculation.
As we move into 2026, success in this market will depend less on timing the boom and more on smart pricing, realistic expectations, and understanding local submarket dynamics — a sign of a healthier real estate ecosystem overall.
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