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
Austin’s Market Is Shifting Again: What October’s Data Reveals
Dated: November 2 2025
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Austin Market Update: October 2025
If you’ve been following Austin’s housing market, you’ve probably noticed it feels different this fall. Price reductions are widespread, inventory continues to rise, and buyers finally have the leverage they’ve been waiting for. Still, well-positioned homes are moving quickly — proving that strategy, not speed, defines today’s market.
Market Overview
In October, Austin recorded 730 closed sales, down 7% year-over-year, with a total sales volume of $590 million, nearly flat from the same time last year. While activity has softened slightly, the overall market remains steady — just more balanced.
What’s driving that balance? A record number of price adjustments. Roughly 60% of homes sold last month required a price drop, with an average reduction of 9% before going under contract. The days of automatic multiple offers are behind us, and sellers are learning that pricing right from the start makes all the difference.
Prices & Days on Market
The median sales price in Austin rose slightly to $557,000, up 1.3% year-over-year. Price per square foot is also up at $355, a 1.5% increase, showing that while sales volume has eased, home values remain resilient.
The median days on market is 49, which is actually five days faster than last year — but that average hides a divide. Homes priced accurately are still moving within weeks, while those that overshoot the market are taking longer and often require a reduction.
Inventory & Supply
Buyers continue to benefit from more options. Austin now has 6.16 months of inventory, up from last year’s levels and solidly in balanced-market territory. There are 4,499 active listings and 1,324 new listings added in October, up 12.3% year-over-year.
Demand is holding steady, with 851 homes going under contract, an 11.8% increase from last year. That means buyers are active — they’re just being more selective and data-driven in their choices.
What This Means for Buyers & Sellers
For sellers: Pricing strategy is everything. With nearly two-thirds of homes requiring a reduction, listing right the first time can save weeks on market and help protect your bottom line. Presentation and timing remain key — the homes that show well and reflect market realities are the ones that move.
For buyers: This is your moment to negotiate. With Austin officially named the #1 buyer’s market in the nation, leverage is shifting in your favor. You have choices, room to negotiate, and opportunities to find value — especially as sellers adjust to this new normal.
Bottom Line
Austin’s market is rebalancing, not retreating. Price stability and steady demand point to a sustainable phase after several years of volatility. Sellers who adapt quickly will win, and buyers who act strategically can secure homes with built-in equity potential.
Today’s market isn’t about urgency — it’s about alignment. When buyers and sellers meet in the same sandbox, that’s where the best deals happen.
Cara Welch
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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