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Housing

Austin Housing Market Bubble Pops: Nearly 47.5% of Homes Sold at a Loss

Strategic Insights

— 2 min read

The Austin housing market, which had seen an enormous bubble during the pandemic, is now undergoing a "gradual adjustment," according to Vaike O'Grady, research adviser at Unlock MLS. The median sales price for an Austin-area home in June was $449,900, roughly the same as a year earlier. However, nearly 14% of home listings were at risk of selling at a loss in May, with a significant portion of those homes being purchased during the pandemic. This trend points to the substantial bubble that formed around the Austin housing market during the pandemic, which is now deflating.

Key Takeaways:

  • Nearly 47.5% of for-sale homes in Austin that were bought in the last three years are at risk of selling at a loss, the highest share among major metros, per Redfin.
  • Nearly a third (32.2%) of for-sale homes in Austin bought during the pandemic (July 2020-July 2022) might sell at a loss, second only to San Francisco (34%).
  • The risk of selling at a loss was higher for homes purchased during the pandemic, with 14% of May listings being at risk of selling at a loss.
  • The median sales price for an Austin-area home in June was $449,900, roughly the same as a year earlier.
  • Sellers have enough equity in their homes to sell them for more than they owe, with nearly all sellers having enough equity to avoid being "underwater" on their mortgages.
  • The Austin housing market is undergoing a "gradual adjustment," with prices softening and sellers facing the option of accepting a lower price or taking the home off the market.

Statistics:

  • 47.5% of for-sale homes in Austin that were bought in the last three years are at risk of selling at a loss (Redfin)
  • 32.2% of for-sale homes in Austin bought during the pandemic (July 2020-July 2022) might sell at a loss (Redfin)
  • 14% of May home listings in Austin were at risk of selling at a loss (Redfin)
  • $449,900: the median sales price for an Austin-area home in June (Austin Board of Realtors and Unlock MLS)
  • 0.5%: the chance of selling an Austin home bought before the pandemic at a loss (Redfin)
  • 34%: the percentage of San Francisco homes bought during the pandemic (July 2020-July 2022) that might sell at a loss (Redfin)

Sources:

  • (https://www.redfin.com/news/selling-at-a-loss-2025/) Redfin
  • (https://www.axios.com/local/austin) Axios
  • (https://www.axios.com/local/austin/2024/07/29/austin-real-estate-appears-to-calm) Axios
  • (https://www.unlockmls.com/stats) Unlock MLS
  • (https://www.axios.com/2025/06/24/housing-market-price-growth-april) Axios
  • (https://www.redfin.com/news/selling-at-a-loss-2025/) Redfin

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