January 2025 Real Estate SALES Market Report - Austin-Round Rock-San Marcos MSA

Overview

The January 2025 real estate market in the Austin-Round Rock-San Marcos metropolitan statistical area (MSA) has shown a mix of trends compared to the previous year. While closed sales have slightly increased, the market continues to adjust to changing conditions, including a decline in median sales price and an increase in inventory levels.

Market Analysis:

• Pricing Trends: The median sales price dropped by 4.7% year-over-year, indicating a softening in home prices. This could be due to higher inventory levels, giving buyers more options and negotiating power.

• Sales Activity: Closed sales saw a marginal increase of 1.1%, showing that transactions are still occurring at a steady pace despite market shifts. However, pending sales declined by 7.5%, suggesting possible slower sales activity in the coming months.

• Inventory and Listings: New and active listings increased significantly by 20.6% and 16.5%, respectively. This rise in supply contributes to the higher inventory level of 5.6 months, nearing a balanced market.

• Time on Market: Homes took slightly longer to sell, with the average days on market increasing to 84 days. This suggests buyers are taking more time to make purchasing decisions.

• Seller Dynamics: The average close-to-list price ratio increased slightly to 92.3%, reflecting that sellers are still able to negotiate strong deals despite the price declines.

Conclusion:
The Austin-Round Rock-San Marcos housing market is showing signs of stabilization with a balanced increase in inventory and steady closed sales. While home prices have slightly declined, demand remains relatively strong. Buyers now have more options, and sellers need to be more competitive in pricing strategies. The next few months will determine whether the market continues to favor buyers or shifts back toward sellers as interest rates and economic conditions evolve.