Austin Home Prices Drop Faster in May 2025

Austin Housing Prices Show Accelerated Decline from April to May 2025

The Austin housing market is showing signs of a sharper market correction as we move from April into May 2025. While April’s year-over-year pricing trends still leaned slightly positive, May’s data indicates a turn toward negative momentum, particularly in average prices across both the Austin-area MLS and the City of Austin. This change highlights a potential acceleration in price softening as inventory builds and demand tapers.

In April 2025, the Austin-area MLS reported a 3.43% increase in average sold price year-over-year, and a 3.78% increase in average active price. Even though the median sold price dipped slightly by -1.13%, the overall direction suggested a resilient pricing environment, especially on the upper end of the market.

However, by May 2025, those gains had reversed. The average sold price declined year-over-year by -1.33%, and the average active price dropped -0.97%. While the median sold price showed a minor increase from April to May—rising from $435,000 to $440,000—it still marked a year-over-year decrease of -1.84%. In essence, the April report was showing moderate strength, but May’s figures now reflect a definitive weakening trend.

A similar pattern emerged in the City of Austin. In April, the average sold price increased by 6.47% year-over-year, and the median sold price rose 5.26%, suggesting strong buyer activity relative to 2024. But by May, that strength faded. The average sold price for the city fell -0.30%, and the median sold price leveled off, registering a negligible change of 0.00%. At the same time, the average active price declined from a 7.13% year-over-year increase in April to just 0.46% in May—a sharp deceleration.

This shift reflects a broader story: the upper-tier market, which buoyed prices in April, has begun to falter by May. With higher-priced listings showing more discounting, the average price metrics are falling more quickly than medians, signaling price compression. Add to that the growing inventory—now over 17,000 active listings in the MLS—and the stage is set for continued softening.

What looked like a stable market in April is now showing clear signs of downward pressure in May. The rapid swing in year-over-year pricing underscores that the rate of decline is accelerating, and market dynamics are shifting faster than expected. For buyers, this may present new opportunities. For sellers, it suggests that pricing strategies will need to adjust quickly in response to changing conditions.​