Austin Real Estate in 2025: The Truth, The Trends, and What’s Actually Working
Jul. 21. 2025
Wow… the Austin real estate market has really done a number on us, hasn’t it?
Since the third quarter of 2022, home prices in Austin have been on a steady decline. It started off slow—rates were creeping up, but buyer demand was still decent. Now, anyone who bought in 2023 or 2024 with a mortgage rate over 5.5% is likely discovering that selling may not make financial sense at the moment (and it really doesn’t make sense for investors who are trying to capitalize on long term holds when the rental numbers don’t compute).
Let’s talk about what’s really happening in our market—and how we’re still creating successful outcomes for both sellers and buyers in 2025.
Why Are Prices Declining in Austin?
After 12+ years of working in this market, here’s what I’m seeing:
- Back-to-office mandates are pulling people away from remote-friendly cities like Austin
- Higher property taxes have increased monthly costs for homeowners (on top of inflation with higher monthly expenses all around)
- Political shifts are prompting some residents to consider other states
- Many young families are moving closer to relatives to help offset the rising cost of childcare
- Austin continues to be a transient city—people come and go as their lives evolve
Yes, it’s been a tricky season. But we’re still closing deals—and helping our clients win.
How Sellers Are Winning in 2025
Selling in this market isn’t impossible, but it takes strategy, timing, and a true partnership between agent and homeowner…and most importantly–PATIENCE.
Here’s what’s working for us right now and our listings in 2025:
Understand Motivation
We always start with: Why do you need to sell?
If it’s avoidable or there are better options, we’ll explore them. Our goal is always to avoid a loss if we can.
Extreme Preparation
I’ve said it before and I’ll say it again—pre-inspections matter. But we also go further. Sellers are:
- Filing insurance claims when appropriate (especially for roof repairs)
- Taking care of repairs before listing
- Staging their homes, deep cleaning, and making sure everything shows beautifully
- Getting clear on the time and energy it takes to list your home for sale to make sure expectations align with your goals
Control the Controllables
We can’t change the headlines or interest rates, and we can’t stop a neighbor from accepting a below-market offer. But we can control how your home presents and how it’s priced. As a seller–you have two levers you can pull: Price and Condition–> So let’s focus on those factors.
Pricing with Intention
Overpricing in this market leads to stale listings. What sold last week is not even current anymore.
Pricing strategically can spark interest and movement, especially when inventory is limited. Sellers often look at their homes with rose-colored glasses—our job is to provide a data-driven reality check aligned with who is most likely your ideal buyer-and how do we get them to commit to your home?
Always Have a Plan B
Selling is no longer a “let’s throw it on the market and see what happens” situation. Before we even list let’s get clear on ” If X doesn’t happen for you–then what?” Understanding the true goal is key.
Patience Pays Off
Homes that are well-presented and competitively priced may still take weeks—or even months—to sell. Weekly check-ins and feedback reviews help us adapt if needed, but consistency and patience remain key.
Recent Seller Successes (and Why):
Our Crestview Listing:
We worked with amazing sellers who reached out a few months prior to wanting to list to game plan. And they did the following:
- Fully painted the home
- Pre-inspected the home and made a few repairs to items that came up
- Provided all invoices, reports, utility bills
- Provided a list of upgrades and what year items were replaced or repaired
- We aggressively priced knowing the home was a rare find for Crestview-One story, 4 br, upgrades but not brand new construction
- Staged the home a bit more high end to highlight spaces and attract the ideal buyer (and we’re lucky to be in a highly desired neighborhood in Central Austin…popular Crestview)
The result? Held strong in contract negotiations. Under contract in 26 days. HERE.
A First-Time Seller in Hutto
This client bought the home when it was brand new as a first-time buyer and was now selling for the first time. Even at a lower price point, we treated this listing with the same attention to detail—
- Pre-Inspected and noted a few items the seller addressed
- Minimized the property and added a few feminine touches (it was a bachelor pad so art, plants and few throws often help)
- Disclosed some minor repairs and what insurance approved and did not
- Kept home tidy and easy for showings while my seller occupied the home
The result? Held strong in contract negotiations, despite passing on a few low ball offers and waited for the right, appreciative buyer. Closed in 47 days, 3% over list price. HERE.
Buyer Wins in 2025
It’s no surprise—buyers are having a moment this year. Inventory is high, competition is low, and options are abundant. But buyers still need strategy (and sometimes a little patience when it comes to stubborn sellers who have not quite accepted the market). Here’s what we recommend:
Make Your Move Before the Price Drop
Sellers are more open to negotiation before they drop the price. Once they reduce, they’re less likely to budge and often want to see if new attention comes in.
Be Clear on Your Must-Haves
More choices can cloud judgment. Focus on homes that meet your non-negotiables—whether it’s location, layout, or school district—and don’t waste time on anything less.
Make Thoughtful Offers
Lowball offers without context often go ignored. If you’re making an offer below list price, come prepared with comps and explain your logic: smaller lot, needed upgrades, older systems, etc. The right presentation can make the difference.
Post-Contract Strategy
Once under contract, we run different loan scenarios to explore interest rate buydowns, and gather quotes for any flagged repairs to strengthen our case for credits or price adjustments.
Buyer Win Highlights in 2025
- THIS HOME: We scooped in and won in multiple offers, but then we had a bad appraisal the first go round, fought it and came out with a price reduction and our clients started with equity!
- THIS HOME: Our clients toured more than a dozen homes, but beat out competition by acting fast and negotiating strategically. The sellers almost let us back out but came to their senses and we negotiated $9,000 of list price and an additional $10k in closing costs (not something that happens a lot in the lower price points)!
All of our buyer clients this year have either received money off the price or in closing cost form
Final Thoughts
Whether you’re exploring a move now or just thinking ahead, every successful real estate journey starts with a plan.
If you’re a seller–> know that preparation and pricing are everything—and you don’t have to navigate it alone.
If you’re a buyer–> this market is full of opportunity—but strategy still wins (and knowing what you are comfortable with/get pre-approved first!)
Let’s talk about what’s next for you.
Email me to get on the calendar for a video consultation–I would love to help you brainstorm your next move! Ashley.Brinkman@compass.com
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