The Austin, TX metro area housing market is currently experiencing a complex set of dynamics as we enter 2025. The Median Sales Price has decreased to $412,400, marking a significant year-over-year decline of 8.4%. This drop in sales price contrasts with the Median List Price, which has risen by 11.8% to $475,000, indicating a potential gap between seller expectations and buyer willingness.

In terms of Price Per Square Foot, the Median Sales Price per square foot has decreased by 3.1% to $214.54, while the Median List Price per square foot has increased by 4.5% to $243.90. This divergence suggests that while sellers are listing homes at higher prices, buyers are negotiating lower prices per square foot.

The number of Homes Sold in January 2025 stands at 1,771, a slight decrease of 0.4% compared to the previous year. Pending Sales have seen a more pronounced decline of 14.2%, totaling 2,378. This reduction in Pending Sales could indicate a slowdown in buyer activity or increased caution in the market.

New Listings have increased by 2.7% to 2,912, and inventory has grown by 2.5% to 9,004 homes. The Months of Supply have risen by 20% to 5.10 months, suggesting a shift towards a more balanced market, though still favoring sellers slightly. The Median Days on Market have increased by 2% to 87 days, indicating that homes are taking slightly longer to sell.

The average sale to list ratio has improved marginally by 0.3% to 97.0%, and the percentage of Homes Sold above list price has increased by 1.6% to 11.0%. However, the proportion of Price Drops has risen by 5.5% to 33.2%, reflecting adjustments by sellers to meet market conditions. The percentage of homes going off the market within two weeks has decreased slightly by 0.3% to 18.1%.

Overall, the Austin housing market is characterized by rising list prices and inventory, alongside declining sales prices and Pending Sales. This suggests a market in transition, with potential opportunities for buyers to negotiate favorable terms as sellers adjust to changing conditions.