December 2025 Austin Market Report

What Went Down in December

Austin closed out 2025 with 709 single-family home sales,

a 6.1% increase from last December. While sales volume ticked up, pricing showed the continued effects of the year's 

buyer-friendly environment.

- The median sales price settled at $584,900 (-4.1% YoY), while the average sales price held relatively flat at $822,315 (-0.4% YoY).

- Price per square foot averaged $339, down slightly from previous months.

- Inventory tightened significantly. As of January 8th, there are 1,972 active listings, bringing months of supply down to 2.79 (3.18 in December). This is a sharp seasonal contraction from the 5+ months we saw in late summer, driven largely by sellers pulling homes off the market for the holidays rather than a massive surge in buyer demand.

Buyers: The "on-paper" stats show tightening inventory, but don't let that fool you into panic. The high frequency of price drops (54%) and a list-to-close ratio of 91.38% prove you still have significant negotiating power on homes that are lingering.

Sellers: The crowd has thinned. With fewer active listings competing for attention, serious buyers are looking at your home. However, 

With prices softening year-over-year, pricing and preparation remain your leverage.

List-to-Close & Buyer Leverage

Negotiation Has Re-Entered the chat.

Homes closed at 91.38% of the list price in December.

- This is a strong signal that list prices are still lagging behind market value.

- Buyers: You are effectively negotiating an average of -8.6% off the asking price across the board. Use this data to justify offers below the list price, especially on homes with high DOM.

- Sellers: If you are pricing with "wiggle room," you are likely pricing yourself out of consideration. The data suggests buyers aren't just wiggling; they are demanding significant concessions.

Sales & Demand Trends

- New Listings: 383 (-10.1% YoY). Sellers pulled back significantly for the holidays.

- New Under Contracts: 497 (+3.5% YoY). Demand outpaced supply in December, eating into the inventory backlog.

- Median Days on Market: 54 days (+2 days YoY).

- Average Days on Market: 75 days.

90-Day Trend & Month-to-Date (January)

The "New Spring" Market

As we roll into January 2026, the market is waking up.

- Month-to-Date (Jan 1-8): We've already seen 139 New Listings hit the market, signaling the holiday freeze is thawing.

- Pending Activity: 96 homes have gone under contract in the first week of the year alone.

- Outlook: We expect inventory to climb rapidly in late January and February. The "window of opportunity" with low competition is closing as the spring market ramps up early.

What's Coming Next (60-Day Outlook)

The Spring Thaw

If rates remain stable, we anticipate a busy Q1. The seasonal tightening of inventory we saw in December will reverse as new 

sellers enter the market for the "Spring" rush, which in Austin often starts in February.

- Buyers: Be prepared for more competition on the best homes. The "tale "inventory will still be there for bargaining, but fresh, well-priced listings will move fast.

- Sellers: The backlog of inventory is your biggest threat. You must launch as the "s"iny penny"—"erfect condition and sharp price—to stand out against the noise of 202025'seftover listings.