AUSTIN, Texas — Austin’s housing market is proving that what goes up must come down. What was once one of the most booming cities in the U.S. has now slowed to a halt when it comes to real estate, according to a new study.
Real estate site Redfin named Austin the slowest market among 50 of the most populous metropolitan areas, comparing data from December 2024 to 2025. It’s a sharp drop from where the market stood during the COVID-19 pandemic, when out-of-state buyers were moving to the city in droves to scoop up real estate.
According to the study, Austin experienced the third biggest decline in home prices among major metro areas, with prices falling 4% in the studied timeframe. The city also had 128% more sellers than buyers in that time, the largest imbalance among the top 50 metros.
The typical Austin home took 106 days to sell on average, a 91-day increase from 2024. Redfin calls it the slowest December since 2012, with national average home sales taking place within 60 days in comparison.
Redfin attributes the market fall to unsustainable price growth in recent years and a homebuilding boom, leaving the city with more renters than buyers.
It’s not all bad news, though. The drop in home sales means those currently looking to buy in Austin have more freedom to bargain and take their time to browse options and get the best price.
“I have a buyer who just offered $560,000 for a home that was listed at $599,000 and a few years ago would’ve been worth $700,000. There’s a pretty good chance the seller will say yes given how slow the market is. Another buyer I’m working with also made an offer on a house for below the list price and plans to bid on a different home if the seller doesn’t accept,” said local Redfin Premier real estate agent Andrew Vallejo.
In the meantime, Vallejo says many prospective buyers in Austin plan to continue renting until mortgage rates fall to 5% or lower.