Is the Austin Real Estate Market Slowing Down or Heating Up?

Is the Austin real estate market slowing down or heating up in 2025? It’s a question we hear daily from buyers, sellers, and investors. The answer? It depends on where you’re looking, what you’re buying, and who’s advising you.

As a trusted Austin, Texas, Realtor and broker, Brandon Holley of Holley Homes Realty keeps a close pulse on market dynamics across Central Texas. Whether you’re wondering if it’s the right time to sell in South Austin or buy new construction in Liberty Hill, this guide unpacks where the market is headed—and how to prepare for what’s next.

What We’re Seeing Right Now

The Austin, Texas real estate market is in a transition phase. After years of record-breaking appreciation and pandemic-fueled demand, we’re now seeing a more balanced market. That doesn’t mean things are slowing down everywhere—in fact, some segments are heating up again.

Key Trends in 2025:

• Inventory is increasing, but still tight in desirable neighborhoods
• Buyer activity is rising with interest rate stabilization
• Pricing is leveling in some areas, while others remain competitive
• New construction is booming in outer suburbs like Georgetown, Buda, and Bastrop

If you’re looking to buy or sell a home in Austin, Texas, this year, context is everything.

Inventory and Buyer Demand: Who Has the Advantage?

In the first half of 2025, the Austin housing market is showing signs of normalization:

• Months of inventory: hovering around 6-6.5 (balanced market range)
• Average days on market: 40–55 days, depending on location and price point
• Price per square foot has held steady in most ZIP codes

Sellers:

• Homes that are move-in ready and priced accurately still attract offers fast
• Overpriced homes or homes needing work tend to linger
• Marketing and staging matter more than ever

Buyers:

• More listings mean more choices and room to negotiate
• Many sellers are offering concessions like closing cost credits or rate buydowns
• Competition is lighter in some areas but fierce in others

This is not the cutthroat market of 2021–2022, but don’t expect deep discounts either.

Mortgage Rates: A Stabilizing Influence

Rates are one of the biggest factors shaping whether the Austin real estate market is slowing down or heating up.

• As of mid-2025, rates are hovering around 6.5%for qualified buyers
• Many lenders are offering a temporary 2-1 buydown program to help with affordability
• Buyers with higher credit scores and larger down payments still get preferred terms

At Holley Homes Realty, we partner with Austin-based lenders who help buyers get creative with financing solutions—including FHA, VA, USDA, and jumbo products.

Hot Areas to Watch in the Greater Austin Market

Some neighborhoods and suburbs are outperforming the broader market due to new development, job growth, and lifestyle appeal. Here’s where we’re seeing increased buyer activity:

1. Georgetown​

• Continued expansion of master-planned communities like Parmer Ranch
• New construction + amenities = strong resale potential

2. San Marcos / La Cima​

• Midway between Austin and San Antonio
• Popular with remote workers and first-time buyers

3. East Austin​

• Urban infill, modern remodels, and walkability continue to drive demand

4. Bastrop & The Colony​

• Affordability meets amenities in one of the fastest-growing areas east of Austin

If you’re considering investing or relocating, these areas are worth a closer look.

Is It a Good Time to Sell in Austin?

Yes—with the right strategy.

• Move-in-ready homes are still commanding strong interest
• Pricing smartly and presenting well are key to selling in 2025
• Sellers should be prepared to negotiate, especially on inspection items or closing costs

Brandon Holley and the Holley Homes Realty team guide sellers through prep, pricing, marketing, and negotiation. From Buda to Brushy Creek, we know how to position homes for today’s buyers.

Is It a Good Time to Buy in Austin?

Yes—if you’re playing the long game.

• Prices have stabilized in many areas, giving buyers a chance to plan with more certainty
• More inventory = more leverage for buyers to negotiate or take time making decisions
• Interest rates are forecasted to dip slightly, but waiting may also mean rising prices

Buyers who act now can benefit from less competition, more selection, and potential seller incentives.

Local Advice Matters More Than Ever

Real estate headlines can be dramatic. But what matters is what’s happening in your ZIP code, on your block, at your price point.

At Holley Homes Realty, we take pride in:

• Knowing the nuances of the Austin, Texas real estate market
• Offering straight, strategic advice—not hype
• Advocating for your best outcome, whether buying or selling

Final Word: Slowdown? Heat Up? Or Just Shifting Gears?

So, is the Austin housing market slowing down or heating up?

The answer is: it’s doing both. The frenzy has cooled, but fundamentals remain strong. Demand is still there. Jobs are still coming. Inventory is still low by historical standards. And Austin, Texas, remains one of the most desirable places to live in the country.

With the right guidance, this market offers opportunity—whether you're upsizing, downsizing, or investing.

Let’s Talk Strategy for Your Situation

Thinking about buying or selling a home in Austin, Texas? Curious what your home is worth? Or just wondering what the smart move is for your family?

Reach out today:

Call or text Brandon Holley directly at 512.487.9242

Email: brandon@holleyhomesrealty.com

Explore more on our YouTube Channel: Holley Homes Realty YouTube

We’re here when you’re ready—no pressure, just partnership.