While once looked at as one of the hotspots in America for real estate, in recent years Austin has gone through a shift reversal. Reports from The Real Deal have described the city as, “definitely a high buyer’s market,” particularly in the luxury & condo markets.
According to RedFin there was a 123.8% percentage more of sellers than there were buyers with 18,202 sellers to 8,134 buyers as of July 2025. This ranks as the third highest disparity in the country, only ranking behind Fort Lauderdale & Miami, FL.
The greatest disparity comes in the condo market in the area with The Real Deal reporting that there is a 19 month worth of inventory. This is far off the typical standard of six months which is standard in a regulated market. This is creating a lack of leverage from sellers, and an unbalanced advantage to the buyers.
Luxury becomes normal
To go alongside with the trends analyzed by sources listed up above, Realtor confirms these numbers in their March reporting that Austin is heading towards a buyers driven market. With inventory rising the demand is not matching leading to a massive surplus.
According to Realtor.com and as reported by MySanAntonio, Austin saw the highest increase in new listings from May 2024 to May 2025 which set a new Texas record for listings. To pair alongside the abundance in housing there was a decrease in median home prices by over 6% during that timespan which was the largest drop across the nation.
Why the shift?
Since the pandemic, the housing surplus came due to a boom in construction leading to an overabundance in listings while working remotely became more widespread in the city. These two things have led to less of a need to live in Austin, while housing inventory has shot up.
Interest rates in Austin have not adjusted to the current market which is leading many to be standoffish to buying causing this problem to exacerbate itself into an even bigger issue. Without any fixes to rates, housing will continue to be underbought causing the market to continue down the path it is already so far down.
What is next?
The future remains unanswered for now, but the likely answer will come when rates adjust to the state of the market causing a buying spree that will swallow a great majority of the evergrowing inventory.
The hope is for a normalized market, to return the market to the rest of the country so that those looking to sell can get their value in return. Buyers are hoping for more of the same to help boost their chances of owning properties.
There is a standstill at the moment between buyers and sellers, there will be compromise coming in the future, but how long must this go on before sellers let go of their properties, and buyers begin to purchase.
Main takeaways
For buyers in the luxury and condo market, now is one of the best times in years to make a move to get to Austin. With their abundant inventory, negotiated pricing, and less competition, buyers wield more power than they’ve had in the recent past & hold more power than in most other places in the country.
For sellers, there is still hope to make sales. Quality properties that are fairly priced and have true quality will sell in any market, even if it may take more time. The key to still getting value is to have patience & to strengthen the value of the home with good marketing.
If you are looking for quality housing in a market where you’re sure to find value, Austin just might be your move.
