Austin Real Estate Market: What Months of Inventory Means for Buyers and Sellers in 2025

March 29th, 2025: The “Months of Inventory” is one of the most important indicators in understanding the Austin-area real estate market. It helps buyers, sellers and investors understand how long it would take to sell all active listings if no new homes came on the market. This number gives insight into whether the market favors buyers or sellers.

In the Austin real estate market, the Months of Inventory is broken down into three main categories. When the inventory is below 4.9 months (about 147 days), it’s considered a seller’s market. That means demand is strong and supply is limited, giving sellers an advantage. When inventory falls between 5 and 6.9 months (150 to 207 days), the market is balanced, with neither side having a clear advantage. If inventory is above 7 months (210+ days), the market is considered a buyer’s market. In that situation, supply is higher than demand, giving buyers more negotiating power and possibly lower prices.

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The real estate data across Central Texas shows how the market can vary from city to city and even by price point. In Round Rock, Texas, as of September 2024, the Months of Inventory was between three and four months across many price ranges. This suggests a leaning toward a seller’s market, but it is not overly competitive. Homes in Round Rock had an average of 76 days on the market before selling. That means homes are still moving, but not at record speed.

Another key piece of data in Round Rock is that 59.5% of all active listings had price reductions. The average price reduction was $24,377. This shows that even though the market may lean in favor of sellers, many are still adjusting prices to meet buyer expectations. It’s important to note that pricing right from the start continues to play a big role in getting a home sold.

In Georgetown, Texas, the data from August 2024 shows the Months of Inventory at 4.79 months. This is just shy of entering neutral market territory. Buyers may have a bit more room to negotiate, especially when compared to tighter seller markets. In Georgetown, homes stayed on the market for an average of 86 days, and 38.4% of active listings had price reductions. The average drop in price was $42,106, which is a larger adjustment compared to other areas.

These numbers give a deeper look into what’s happening across the region. Sellers who understand local inventory trends can price their homes competitively and prepare for realistic time frames. Buyers, on the other hand, can use this data to know where they may have negotiating room and where they need to act quickly.

Months of Inventory is a powerful tool to track the balance between supply and demand. Understanding this data, along with trends in price reductions and days on market, helps all sides make better decisions. Whether you’re buying or selling in the Austin area, tracking these local trends is key to staying ahead in the current real estate landscape.