The Austin housing market continues to shift as active listings climb, buyer demand lags, and median prices remain well below peak values.

Scroll down to view the full Austin Daily Real Estate Briefing PDF for October 2, 2025.
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The Austin real estate market is navigating a complicated balance this fall. Active listings have risen to 16,375 homes, up 13.8% from last year, and nearly six in ten sellers have already made at least one price drop. While new listings remain strong, demand is not keeping pace. Pending contracts are down 5.1% year over year, and the overall Activity Index has slipped to 18.9%, a noticeable decline from 21.9% last fall. These numbers reflect an ongoing correction where buyers are cautious and sellers are being forced to adjust expectations.

Market Overview

The total number of active residential listings remains historically high, though slightly below the June 2025 peak of 18,146. Inventory at this scale gives buyers more options than they have had in years, but it also highlights the growing imbalance between supply and demand. More than 59% of all active homes have had at least one price drop, a sign of sellers responding to slower traffic and longer days on market.

From January through September, Austin has recorded 41,387 new listings, which is 5.6% higher than last year and more than 24% above the long-term average. By contrast, cumulative pending sales stand at 34,365, down 1.9% from 2024 but still 6.3% above the long-term trend. The gap between new listings and pendings is now over 7,000 homes, underscoring why buyers are in control of negotiations.

Housing Prices

Price trends confirm the depth of the correction. The average sold price in September 2025 was $551,301, compared to the May 2022 peak of $681,939. That represents a 19% decline, or roughly $131,000 per home. The median sold price has fallen even further, dropping to $416,945—a 24% decline from the $550,000 peak just three years ago.

From a longer-term perspective, median values are now down 11.3% compared to three years prior, showing how persistent the downturn has been. Using Austin’s 25-year compound annual appreciation rate of 4.66%, it would take until January 2032—about 77 months from now—for prices to fully recover to their prior peak. This timeline emphasizes the difference between short-term market cycles and the longer steady pace of real estate appreciation.

Regional Trends

The market is not moving evenly across the region. Cities like Leander, Liberty Hill, Kyle, and Georgetown are seeing more than two-thirds of listings marked down, while others like Del Valle and Buda are holding somewhat stronger. The bottom quartile of homes (entry-level) is showing continued price declines—down 3.9% year over year—while the top quartile (higher-end homes) has managed a 2.5% price gain. This split suggests that affordability challenges are still weighing heavily on first-time buyers, while wealthier buyers remain more active.

At the city level, nine markets saw year-over-year price increases, while twenty recorded declines. Buyers targeting the suburban and entry-level segments will find deeper discounts, while higher-end neighborhoods are showing more resilience.

List-to-Sale Price Performance

Homes are not only selling for less—they are also moving more slowly. The absorption rate, which measures the percentage of active listings that sell in a given period, stands at 16.5%, about half the historical average of 31.8%. This metric shows that buyers have the upper hand, with sellers competing against a growing pool of unsold homes.

The Market Flow Score (MFS), a composite measure of turnover and efficiency, sits at 5.08, below the historical average of 6.59. This confirms that Austin’s housing market is operating below normal efficiency, with more supply relative to demand and slower contract activity.

Peak Value Trends

For perspective, Austin is still working its way through the aftermath of the 2021–2022 surge. With median prices off by more than 24%, many sellers who bought near the peak remain in negative equity positions. Buyers today, however, are positioned to purchase at significant discounts from those peak values.

The long-term math is still on Austin’s side: even after this correction, the 25-year average appreciation rate of 4.66% remains intact. That steady historical trend means buyers entering now could see meaningful gains over the next market cycle, especially if they hold through the projected recovery horizon into the early 2030s.

What It Means for Buyers, Sellers, and Agents

For buyers, this is one of the most favorable environments in years. Inventory is high, competition is low, and price reductions are widespread. Negotiation leverage is firmly in the hands of buyers, especially for those willing to be patient and selective.

For sellers, success requires strategy and flexibility. Overpricing a listing guarantees longer days on market and eventual reductions. Pricing correctly from the start, combined with strong presentation, remains the best path to securing offers. Sellers should also be prepared for longer marketing times and the reality that today’s prices are significantly below the 2022 peak.

For real estate agents, this market demands skillful guidance. Helping buyers understand the long-term appreciation potential while navigating the short-term slowdown is critical. For sellers, clear communication about pricing, condition, and market trends is essential to setting realistic expectations.​