Austin homeowners drop house price nearly 30% as they struggle to sell

Despite broader signs of a stable and predictable housing market in Austin, Texas, a luxury home has undergone several price reductions over the past year—a drop nearly 30 percent below its initial April 2024 asking price of $3,250,000.

Why It Matters

Austin’s housing market has been described as stable, with consistent sales and prices expected throughout 2025.

However, according to local reporting out of KXAN Austin, informed by Unlock MLS, Zillow and Realtor.com data, the city’s median sales price has seen a year-over-year decline of 4.7 percent. This could suggest minor market changes or specific area adjustments, even amid overall market health.

The Austin property at 4808 Ranch Road 2222 tells a different story. This situation highlights that even in a generally positive market, some homeowners may face challenges that necessitate significant price adjustments.

What To Know

The 3,406-square-foot Austin home has dropped in price five times since its initial listing in April 2024, culminating in a total reduction of 27.69 percent, or $900,000.

This is quite a bit higher than Austin’s overall average percentage price drop of -9.15 percent, recorded last week, per Pricing Culture. Further, the property’s five reductions far exceed the Austin average last week of 2.11 price drops per listing.

The four-bedroom, three-and-a-half-bath home is located in Austin’s Bull Creek neighborhood. According to Realtor.com, the neighborhood as a whole has a median listing price of $1,412,500.

Local market data reported by KXAN Austin shows an increase in the number of days homes are staying on the market over the past eight months, averaging 84 days, though the average is slightly lower compared to a full year prior.

Outside of broader market trends, the home at 4808 Ranch Road could possibly point to an overestimated initial valuation or a lack of buyer interest at the higher price points in this upscale market segment.

What People Are Saying

Dr. Clare Knap, housing economist at Unlock MLS, told ATX Today: “2025 really will be a year in the Austin housing market that is defined by stability … predictable levels of inventory, relatively consistent mortgage rates, [and] consistent expectations around year-over-year changes to home sales and prices.”

“I don’t think we’re necessarily going to see the same level of growth … as we did in 2024, but I think we’re going to relatively maintain our level of inventory in 2025.”

Marco Santarelli, founder and CEO of Norada Real Estate Investments, wrote in a 2025-2026 Texas housing market forecast: “Several areas, including Austin, Huntsville, Sulphur Springs, Corpus Christi, and the Permian Basin cities like Odessa and Midland, face the possibility of experiencing a decline in home prices over the next year. Keep in mind that the projected declines are generally relatively small.”

What Happens Next

Analysts predict that while 2025 may see improvements in mortgage rates and buying conditions in Austin, sellers might still face pressures if economic uncertainties persist.

As for 4808 Ranch Road, only time will tell if the latest price adjustment will attract buyers or if further reductions are on the horizon.