Austin’s real estate market is experiencing subtle but impactful shifts as we move into 2025. For prospective homebuyers, the question remains: Is now the right time to buy? Understanding market trends is crucial in determining whether conditions align with a buyer’s market, where homebuyers gain the upper hand.

In this post, we’ll break down the indicators of a buyer’s market, explore opportunities for buyers, and leverage insights from market forecasts for 2025 and beyond. With Spyglass Realty’s unparalleled expertise, you can confidently navigate Austin’s ever-evolving real estate market.

Key Insights: Is Austin Entering a Buyer’s Market?

• Market Conditions are Shifting: Austin’s housing inventory is increasing, and homes are spending longer on the market, giving buyers more negotiating power, though affordability remains a challenge.

• Declining Mortgage Rates Offer Opportunities: Projected rate drops in 2025 may lower monthly payments and encourage hesitant sellers to list, boosting inventory and benefiting buyers.

• Strategic Timing and Location are Crucial: Neighborhoods like Cedar Park, Pflugerville, and Caldwell County offer competitive pricing, making them ideal for buyers looking to maximize value.

What Is a Buyer’s Market and How Does It Impact Homebuyers?

A buyer’s market occurs when housing supply exceeds demand, creating favorable conditions for buyers. This scenario typically includes:

• Higher Inventory: More homes on the market than there are buyers.

• Longer Days on Market: Homes take longer to sell, reducing urgency.

• Increased Negotiation Power: Buyers can negotiate prices and terms more effectively.

For Austin, this potential shift marks an exciting time for homebuyers, providing opportunities for lower prices and better terms. However, affordability challenges remain. According to CoreLogic’s chief economist, Selma Hepp, while home price growth has slowed, median home prices are still approximately 50% higher than five years ago. As such, buying a home remains out of reach for many.

Spyglass Realty’s seasoned professionals are here to help you navigate these challenges, ensuring you find the best deal in this competitive market.

Signs That Austin Is Entering a Buyer’s Market

It’s important to look for specific indicators that signal a shift toward a buyer’s market. From increased inventory to slower listing times, there are several key trends that suggest Austin’s housing market is becoming more favorable for buyers. 

1. Increased Housing Inventory, Longer Listing Times

According to Zillow, Austin's housing inventory now stands at 5.1 months, edging closer to the six-month benchmark that typically defines a buyer’s market. Clare Knapp, a housing economist for Unlock MLS, notes that this uptick in supply has given buyers more negotiating power. While affordability remains a challenge due to elevated home prices, the increased availability offers more choices for buyers.

2. Price Adjustments

The median sales price for the Austin metro in October 2024 was $430,000, down 3.2% year-over-year. Caldwell County currently offers the lowest median sales price at $262,990, while the city of Austin remains the highest at $565,000. These adjustments are evidence of a softening market where buyers can find opportunities to negotiate better deals.

3. Shifts in Buyer and Seller Behavior

Buyers are becoming more discerning as supply grows. The Austin Board of REALTORS (ABoR) reports a notable increase in negotiation leverage for buyers, especially in areas with rising inventory. Sellers, on the other hand, still benefit from elevated home prices but must adjust expectations to remain competitive.

4. Mortgage Rates Projected to Decline

Mortgage rates are expected to continue their downward trajectory into 2025, with average projections from Fannie Mae, MBA, NAR, and Wells Fargo predicting:

• 2025 Q1: 6.30%

• 2025 Q2: 6.19%

• 2025 Q3: 6.09%

• 2025 Q4: 5.98%

Recent trends show mortgage rates nearing their lowest levels in over a year. Zillow's Chief Economist, Skylar Olsen, predicts that sustained rate drops could reignite buyer activity this fall. However, a phenomenon called "rate lock" continues to limit seller activity. This occurs when homeowners with low-interest mortgages hesitate to sell, keeping some inventory off the market.

Lower rates will reduce monthly payments, making homeownership more attainable. Additionally, declining rates may prompt hesitant sellers to list their homes, further increasing inventory.

Opportunities for Buyers in 2025 and Beyond

With the potential for a buyer’s market, homebuyers have an exciting opportunity to take advantage of market conditions. Understanding the best strategies for buying in 2025 will ensure that you’re well-prepared to find your perfect home at a competitive price. This section will explore the opportunities available for buyers, from optimal timing to neighborhoods that are offering great deals.

Although affordability is still a concern, certain factors make 2025 an attractive time for buyers. Mortgage rates are projected to decline, which will ease some of the pressure caused by higher home prices.

1. Timing Your Purchase

The anticipated decline in mortgage rates is a game-changer. According to Freddie Mac, rate cuts by the Federal Reserve could stimulate both supply and demand, with more sellers entering the market and buyers returning to take advantage of favorable financing. Spyglass Realty’s market insights can help you determine the best timing for your purchase.

2. Exploring Austin’s Best Deals

Certain areas of Austin stand out as buyer-friendly in 2024. Neighborhoods like Cedar Park, Pflugerville, and Caldwell County offer attractive price points, with median sales prices significantly lower than Austin’s city center.

3. Affordability Challenges

Despite slowing price growth, Austin’s housing market remains tight. Experts predict that while inventory and demand are gradually balancing, many areas will likely remain seller’s markets into 2025. However, Spyglass Realty’s negotiation strategies can help you maximize opportunities, even in competitive regions.

Is Austin Entering a Buyer’s Market?

While Austin’s market trends suggest a potential shift toward a buyer’s market, affordability challenges persist. With growing inventory, longer listing times, and declining mortgage rates, 2024 presents unique opportunities for homebuyers.

Whether you’re seeking a first home, upgrading, or investing, Spyglass Realty has the local expertise and proven strategies to guide you through Austin’s evolving market.

Don’t miss out on real estate opportunities in 2025. Contact us today for expert advice on selling or finding your home in Austin’s dynamic real estate market.

Resources: 

• Forbes Housing Market Predictions
• Homebuying Institute - Texas Real Estate Market
• Early Forecasts for the 2025 Housing Market Infographic