Austin Business Journal writes, "The housing market in Austin showed more signs of slowing in May, with sales dropping and inventory rising.
The number of listings came in at 5,716, equating to five months of inventory, according to the latest report from Unlock MLS. Sales numbered 3,021 in May — a 3.8% year-over-year decrease — although 4,515 sales were pending, a 16.1% year-over-year increase and the most reported so far in 2025.
The median sales price in May registered $449,000, a decline of $1,000 from April.
Clare Knapp, housing economist for Unlock MLS and the Austin Board of Realtors, said the slowing market could motivate sellers to adjust their prices to align more with what buyers can afford and are willing to pay.
“It's not that demand has disappeared — buyers still want homes here, but affordability remains a key factor,” Knapp said in a statement. “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."
Still, May's median $449,000 price tag remains unaffordable for many in the metro.
Unlock MLS determines affordability by taking 80% of the area's median income, or around $104,000, and multiplying it by three to come up with a benchmark for how much a first-time buyer should pay. That equates to a range of $300,000 to $400,000 in the metro, Knapp previously has said.
First-time homebuyers seeking the most affordable inventory in the area won't find it within the city of Austin, where the median sale price of a home reached $595,000 in May.
But the surrounding suburbs continue to be less expensive. The median home price in May came in at $425,000 in Williamson County, $384,000 in Hays County, $350,000 in Bastrop County and $317,990 in Caldwell County."
Source: Austin Business Journal
Written by: Cody Baird
Published: June 18, 2025
Posted by Grossman & Jones Group on
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