Central Texas Real Estate Market Update: 2025 Buying and Selling Trends

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Central Texas Real Estate Market Update: 2025 Buying and Selling Trends

The Central Texas (CTX) real estate market is off to a dynamic start in 2025, with new data revealing important shifts for both buyers and sellers. Here’s a breakdown of the latest numbers, what’s driving the market, and what it means if you’re considering buying or selling a home in the region.

Inventory and Listings: More Choices for Buyers

  • Active Listings Up: In January 2025, the Austin-Round Rock-San Marcos metro area saw 9,616 active home listings—up 16.5% from the previous year. New home listings also jumped 20.6% to 3,690, giving buyers more options than in recent years.

  • Months of Inventory: The market now has 5.6 months of inventory, nearly a full month more than last year, signaling a shift toward a more balanced market.

Home Sales and Prices: A Cooling but Active Market

  • Sales Volume: Closed sales in January 2025 reached 1,761, a slight 1.1% increase year-over-year, showing steady demand despite higher inventory.

  • Median Price: The median home price in the Austin-Round Rock-San Marcos area was $409,765, down 4.7% from January 2024. This is a moderation after years of rapid price growth, making homes more accessible for buyers.

  • Close-to-List Price: Homes sold for an average of 92.3% of their list price, a slight improvement from last year. This indicates that sellers are adjusting expectations to meet market realities.

Leasing Activity: Rentals Remain Strong

  • Closed Leases: Leasing activity is robust, with 1,871 closed leases in January 2025—an 11.7% increase from the previous year.

  • Median Rent: Median rent-stabilized at $2,195, down 1.3% year-over-year, making leasing a relatively attractive option for those priced out of homeownership.

County Highlights

  • Travis County: Median home price held steady at $475,000, with 744 homes sold (down 0.8% year-over-year). Inventory rose to 6.2 months, giving buyers more negotiating power.

  • Caldwell County: Saw a surge in sales (up 80.9%) but a 4.9% drop in median price to $287,995, reflecting increased affordability and activity in outlying areas.

Market Drivers and Outlook

  • Population Growth: Texas is expected to add nearly 500,000 new residents in 2025, keeping long-term demand for housing strong.

  • Price Stabilization: After years of double-digit price increases, experts predict home price growth will moderate, creating more balanced opportunities for both buyers and sellers.

  • Interest Rates: If mortgage rates stabilize or decrease, buyer activity could pick up further, especially among first-time buyers.

  • Inventory Trends: The increase in homes for sale is giving buyers more leverage, but sellers who price competitively and present their homes well are still seeing strong results.

Advice for Buyers and Sellers

  • For Buyers: With more inventory and moderating prices, now is a good time to shop for deals. Be patient, look past cosmetic issues, and negotiate for closing cost assistance or price reductions where possible.

  • For Sellers: Homes that are well-priced and in good condition are still moving, but overpricing can lead to longer days on the market and price reductions. Work with a knowledgeable agent to set a realistic price and maximize your home’s appeal.

Bottom Line

The Central Texas real estate market in 2025 is more balanced than in recent years, with increased inventory, stable sales, and moderate prices. Whether you’re buying or selling, understanding these trends—and working with a local expert—will help you make the most of today’s market conditions.

Written by Malcolm Davis of Homevets Realty LLC.


📞 Contact me at 254-419-5073
📧 Email me at mrdavis324@outlook.com

🔗 Learn more & connect today: www.malcolm.homevetsrealty.com
Location: Killeen, TX, USA

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