As we head into the new year, it’s a good time to look back at what happened in the Austin real estate market at the end of 2025. The latest data from the Austin Board of Realtors gives us a clear picture of where pricing, inventory, and activity landed in December. The median home price in the City of Austin for December 2025 was **$550,000**, which is **down 3.9% year over year**. Over the last year we’ve definitely seen prices adjust, but we’re no longer seeing dramatic swings. Instead, the market appears to be stabilizing. That stabilization is actually healthy. It creates a more predictable environment for both buyers and sellers after several years of rapid appreciation. Closed sales were **up about 4% compared to last year**, which is notable given that December is typically a slower month in real estate. Even with price adjustments happening across the market, buyers are still actively purchasing homes. Inventory currently sits at **about four months**. Historically, six months is considered a balanced market, so technically this would lean toward a seller’s market. In reality, it still feels like a buyer’s market because buyers have options — a lot of them. We’re seeing that clearly in negotiations. Homes in Austin are currently closing at **90.9% of list price on average**. That means buyers are paying roughly **9% below the asking price**, and that number doesn’t even include price reductions that may have happened before a home went under contract. For sellers, this is why **pricing strategy is critical**. Homes need to be priced according to today’s market, not what the market looked like six months or a year ago. Average **days on market is currently 79 days**, which is slightly higher than last year. A common question buyers ask when touring homes is whether something is wrong with a property if it has been sitting for several months. In most cases, the answer is no. Many neighborhoods simply have multiple homes for sale at the same time, giving buyers more choices than they had a few years ago. Looking at the full year, **just over 10,000 homes sold in Austin in 2025**, slightly more than the previous year. The median sales price for the year was **$570,000**, compared to the **$550,000 median we saw in December**. Meanwhile, nearly **18,000 new homes were listed in 2025**, which explains why buyers are seeing more inventory across the city. Interestingly, **new listings have already started ramping up again**. In early January we’ve been seeing close to **100 new homes hitting the market every day**, which suggests the spring market may be starting earlier than usual. Now let’s talk about leases. The **median rent in Austin is currently about $2,325**, which is **down 1.1% from last year**. There are also a large number of rental properties available, with roughly **2,400 active leases on the market**. Leases are closing at **93.7% of list price on average**, meaning tenants are often able to negotiate rent depending on how long the property has been on the market. Because of this, the rental market right now is very much **tenant-friendly**. The bottom line: the Austin real estate market at the end of 2025 is **stabilizing but still negotiation-driven**. Buyers have leverage, sellers need to price strategically, and renters have plenty of options. As we move further into 2026, activity is already starting to pick up — which could mean the **spring market is arriving earlier than expected**. If you’re thinking about buying, selling, leasing, or investing in Austin, understanding the data can give you a significant advantage.
