Austin Housing Market Update: What’s Happening This Quarter

The median home price in the Austin metro is around $506,000, down about 9% from last year. Homes are taking longer to sell—an average of 89 days compared to 81 a year ago—and inventory continues to rise as price cuts become more common. Overall, prices are holding mostly flat to slightly down across the region.

Higher interest rates remain the biggest factor shaping the market. Even with lower prices, monthly payments are higher, which has slowed buyer activity. Many homeowners are holding on to their low mortgage rates, limiting the number of homes available. With more listings sitting longer, sellers are adjusting expectations and getting more realistic about pricing.

For sellers, accurate pricing and strong presentation are key. Move-in-ready homes still draw solid interest, but the average home now takes closer to three months to sell. Offering credits or flexible terms can help attract buyers and keep deals moving.

For buyers, the market feels more balanced than it has in years. There’s more room to negotiate and more time to compare options. Well-priced homes in good condition still move quickly, but properties that have been on the market longer can present solid opportunities.

Central Austin neighborhoods continue to perform best, while suburban and entry-level markets are softer due to affordability pressures. New construction remains active, though higher costs and longer build times are keeping that segment steady rather than hot.

Looking ahead, mortgage rates will play a big role in where the market goes next. A drop in rates could bring more buyers off the sidelines, while a continued rise in inventory could create more downward pressure on prices. Austin’s strong job market and steady migration still support long-term demand, but buyers and sellers alike should expect a slower, more balanced pace through the end of the year.

If you’d like a closer look at trends in your specific neighborhood—South Austin, Downtown, or nearby communities—reach out and I’ll share a breakdown tailored to your area.