Austin Housing Market Update | August 2026Inventory Is Still High—But Buyer Activity Is Picking UpAustin's housing market is giving us a more interesting signal in August: inventory remains
Dated: October 3 2025
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This fall, one number stands out above the rest in Georgetown real estate: 65% of active listings have taken a price reduction.
That means nearly two out of three sellers started too high and ended up chasing the market down. For buyers, that’s leverage. For sellers, it’s a cautionary tale.
Median Sale Price: $445,000 (-3.8% YoY)
Closed Sales: 255 (+3.7% YoY)
Sales Volume: $114M (approx.)
Median Days on Market: 62 (+11 days YoY)
List-to-Close Ratio: 92.24% (about 3% under asking, on average)
Months of Supply: 5.09
Inventory Snapshot
Active Listings: 1,256
65% with a Price Drop (average cut of 8%)
Median Days to Price Drop: just 14 days on market
Affordability has improved compared to a year ago, and the bigger story is choice. With so many listings reducing their asking price — and mortgage rates holding steady — buyers are in a position to secure homes at more realistic prices. This is a rare window where leverage is on the side of the buyer.
Pricing strategy has never been more important. The majority of listings that start too high are cutting within two weeks, and the average reduction is 8%. Overpricing puts you in the “chase down” game, where your home lingers while buyers wait for cuts. Homes priced right from the start stand out against reduced competition and move faster.
Bottom line: For sellers, price right the first time. For buyers, price reductions + inventory + steady rates = opportunity.
Born and raised in the heart of Austin, Cara Jane Welch offers a perspective on the Texas Hill Country that few can match. Her deep-rooted connection to the region began in Hutto when it was still a r....
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