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Is Austin turning into a buyer’s market? All signs point to yes in 2025.
Read this article to understand the key reasons behind this shift. And if you’re planning to invest, don’t miss our Austin real estate spreadsheet, designed to help you assess profits and strategize for success.
This article gives you valuable insights, but remember, it’s not and will never be investment advice. We pull data from a range of sources to provide you with the most accurate picture possible, yet we can’t guarantee complete accuracy. Markets are difficult to predict. Make sure to do your own research and consult a professional before making any financial moves. Any risks or losses are your own responsibility.
1) Austin's housing inventory surged, creating a buyer's market with competitive pricing and more negotiating power
In 2024, Austin's housing and commercial space inventory grew significantly with projects like the Sixth and Guadalupe tower, the city's tallest building.
This increase offers buyers more options, leading to competitive pricing and favorable conditions.
The supply is catching up with demand, indicating a shift to a buyer's market, where buyers benefit from lower prices and more negotiating power, unlike the previous seller's market.
By 2025, Austin's market becomes more attractive for buyers, offering a balanced environment for informed decisions without the pressure of rising prices, signaling a stable and accessible real estate market.
Source: Wikipedia
2) Austin's average Days on Market hit 74, signaling a shift to a buyer's market with more negotiating power
In March 2024, Austin's average Days on Market (DOM) for homes reached 74 days, indicating a shift towards a buyer's market.
Longer DOM suggests decreased buyer urgency and more available homes than immediate buyers, giving buyers leverage to negotiate better deals and request concessions.
Sellers may need to lower prices or offer incentives.
This trend marks a departure from Austin's previously competitive market.
As we approach 2025, increasing DOM confirms Austin's transition to a buyer's market, providing favorable conditions and opportunities for prospective homeowners.
Source: West Austin Properties
3) Austin home prices fell 3.5%, making it a buyer's market with more options and better deals
In July 2024, Austin home prices fell by 3.5% from the previous year, indicating a shift towards a buyer's market.
This decline suggests sellers are more willing to negotiate, likely due to increased inventory or reduced demand.
As we approach 2025, buyers have more leverage, with more options and better deals available.
This trend benefits those entering the housing market, making it an opportune time to buy in Austin.
Sources: New York Post, CoreLogic
- Why are Austin’s falling home prices in 2025 a win for buyers?
4) Austin's investor share dropped to 23%, easing home prices and making it a buyer's market for 2025
In June 2024, investors made up only 23% of single-family home purchases in Austin, indicating a decline in speculative buying.
This reduction eases pressure on home prices, benefiting traditional buyers by creating a more balanced market.
As investors retreat, rapid price increases slow, leading to more stable prices and potentially more inventory.
This shift suggests Austin is becoming a buyer's market in 2025, giving traditional buyers more leverage and time to find homes without competing against cash-rich investors.
This trend aligns home prices with actual demand, making the market more accessible and sustainable.
Sources: New York Post, CoreLogic
5) Austin's homeownership costs are more than twice renting, making it a buyer's market moving into 2025
In February 2024, Austin's median rent was $1,530, while buying a home cost $3,695 monthly.
This disparity discourages potential buyers, indicating a shift to a buyer's market.
With homeownership more than twice as expensive as renting, many choose to rent for financial relief and flexibility, reducing home-buying demand and competition.
Consequently, sellers may face longer listing times and lower prices.
As we approach 2025, this trend suggests buyers can negotiate better terms and prices, making Austin an appealing market for home purchases.
Source: Market Watch
6) Austin's real estate market is heating up for buyers with a 27.45% surge in homes for sale
In May 2024, Austin's real estate market saw a 27.45% increase in homes for sale, totaling 12,264 listings.
This rise indicates a shift towards a buyer's market, offering more choices and reducing competition.
Buyers can now explore options, compare prices, and negotiate better deals, while sellers become more flexible.
As we approach 2025, this trend suggests Austin is becoming more accessible and attractive for buyers, providing them with leverage for informed real estate decisions.
Source: West Austin Properties
- Why is Austin a top choice for real estate investment in 2025?
7) Austin's real estate market is shifting to a buyer's paradise with Northline's 2,150 new multifamily units
The Northline project in Leander will add 1.9 million square feet of office space and 2,150 multifamily units by 2031, easing Austin's housing demand.
This development will diversify living options and potentially lower prices, creating a more balanced market.
As Austin transitions to a buyer's market by 2025, increased housing options will enhance buyer negotiating power.
The additional office space is expected to boost local employment, stabilizing the market further.
Northline is a catalyst for a more balanced, buyer-friendly real estate market in Austin.
Source: Aquila
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So, is Austin becoming a buyer's market in 2025? Absolutely, it is!
In 2025, Austin is set to become a buyer's market, offering more favorable conditions for homebuyers.
Several factors contribute to this shift. First, the housing inventory in Austin surged in 2024, with projects like the Sixth and Guadalupe tower increasing available options. This growth in supply leads to competitive pricing and more negotiating power for buyers.
Additionally, the average Days on Market for homes reached 74 days, indicating decreased buyer urgency and more leverage for buyers to negotiate better deals. Home prices also fell by 3.5%, further signaling a buyer's market.
Moreover, the investor share dropped to 23%, easing home prices and creating a more balanced market. With homeownership costs more than twice renting, many opt to rent, reducing demand and competition.
Finally, a 27.45% increase in homes for sale and new developments like Northline's multifamily units enhance buyer options and negotiating power. All these factors make Austin an appealing market for home purchases in 2025.