Austin Real Estate Weekly Market Update – October 09, 2025

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, October 09, 2025 at 8:15 pm

The Austin housing market enters October 2025 with rising inventory and mild pricing declines. Active listings have increased 14.2% year over year across the Austin area and 7.2% within the City of Austin, pushing Months of Inventory to 5.82—reflecting slower absorption and more negotiating power for buyers. Pricing remains relatively stable, with the average sold price up 1.1% from last year and the median down 1.0%. Within the city, however, prices show steeper adjustments, with the median sold price down 6.0% year over year. Overall, the Austin market continues to shift gradually toward a buyer-friendly landscape, marked by more selection, extended marketing times, and stronger competition among listings. 

A detailed breakdown of this week’s Austin housing data follows in the full Weekly Market Update below. 

Inventory Growth and Market Balance

Active residential listings across the Austin area continue to climb, confirming the city’s ongoing shift toward a more balanced housing market. As of early October 2025, there are 16,423 active listings, up 14.2% from 14,385 one year ago. Compared to last week’s 16,375 listings, inventory has edged slightly higher, showing that supply continues to expand despite seasonal slowing. The Months of Inventory figure rose from 5.28 to 5.82, marking a 10.3% increase and reinforcing that homes are staying on the market longer as absorption slows. Buyers are gaining leverage, and sellers are facing more competition as the fall season unfolds.

Inside the City of Austin, inventory growth has been somewhat more restrained but still meaningful. Active listings have climbed 7.2% year over year, moving from 4,643 in 2024 to 4,975 today. The city’s Months of Inventory also increased, rising from 5.52 to 5.82, a 5.5% gain. Week over week, Austin’s inventory held relatively steady, signaling that while supply remains elevated compared to last year, the surge of new listings seen earlier in the summer has tapered off. The overall takeaway: buyers now enjoy more choices, while sellers must adjust expectations and pricing strategies to compete effectively.

Pricing Stability Across the Region
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Despite the substantial rise in inventory, prices across the Austin area remain remarkably steady. The average list price for active homes across the region stands at $578,176, up 1.2% from $571,148 last year. The median list price shows virtually no change, dipping just 0.02% to $429,930. On the closed sales side, the average sold price increased 1.1% year over year, from $549,064 to $554,953, while the median sold price slipped 1.0%, moving from $421,000 to $416,889.

Week over week, these values have remained largely stable, underscoring that the market has reached a phase of price equilibrium. Even with rising inventory, price erosion has been minimal, a sign that underlying demand continues to support current values. For most sellers, price adjustments are now driven more by property condition, location, and time on market rather than broad regional pressure. For buyers, this creates an environment of predictability—values are no longer climbing rapidly, but neither are they collapsing.

Pricing Trends in the City of Austin
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Within the City of Austin, price trends show a sharper correction compared to the surrounding metro area. The average list price has fallen 3.5% year over year, dropping from $787,677 to $759,769, while the median list price is down 5.8%, from $599,000 to $564,250. Closed sales follow the same trajectory: the average sold price decreased 3.4%, from $752,383 to $726,930, and the median sold price fell 6.0%, sliding from $585,000 to $550,000.

Compared to last week, city prices are holding steady at these lower levels, suggesting that the bulk of the correction has already occurred. The declines are most visible in the mid-price segments, where affordability challenges and elevated interest rates have softened buyer demand. While luxury inventory continues to dominate the listing pool, the broader urban market reflects a normalization phase rather than a downturn. Buyers now hold stronger negotiating power, but sellers who price accurately can still attract serious offers.

Negotiation and Buyer Leverage
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Negotiation remains a defining feature of the Austin housing market this fall. As of early October, 69.22% of closed sales have transacted below list price, up from 65.93% last month. Meanwhile, 18.41% of homes sold at list price, down from 21.90%, and 12.37% sold over asking, nearly unchanged from last month’s 12.18%. For comparison, in July 2024, more than 13% of homes were selling above list—evidence that the market’s competitive edge has cooled.

The average sold-to-list price ratio across the Austin area now stands at 97.17%, reflecting that most sellers are accepting modest price concessions to secure a buyer. These numbers reinforce that buyers have more control during negotiations, often achieving favorable terms or closing cost credits that were rare just two years ago. Sellers who adapt to this dynamic—by pricing realistically and adjusting early if showings stall—are still closing successfully, but overpricing remains a costly mistake.

Regional and ZIP Code Variations
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Market performance remains highly uneven across Central Texas. Out of 30 tracked cities, 17 posted month-over-month price increases (57%), while 13 recorded declines (43%). Year over year, the split tilts slightly negative, with 14 cities showing gains and 16 showing declines. None of the tracked cities are above their 12-month peak, confirming that the market-wide recalibration continues to hold.

At the ZIP code level, trends mirror the city-level split. Out of 75 tracked ZIP codes, 40 (53%) showed month-over-month gains, while 32 (43%) posted declines. On a year-over-year basis, 35 ZIP codes saw price increases and 40 reported decreases. Only one ZIP code across the Austin region remains above its 12-month peak, indicating that while local rebounds occur, most neighborhoods are still trading below their prior highs.

This dispersion highlights how localized Austin’s market has become. Areas with stable employment bases, new infrastructure, or constrained new construction—such as parts of Georgetown, Buda, and Leander—are faring better than outer-ring markets still working through excess inventory and longer selling cycles.

Prices Relative to Peak Levels
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When compared to market peaks from 2022 and 2023, current prices remain well below their highs. Across the Austin area, the average list price has dropped 6.7% from its March 2023 peak, while the median list price sits 15.9% below its May 2022 high. The average sold price is down 10.5%, and the median sold price has declined 17.8% from peak values. On a price-per-square-foot basis, both average and median values remain 21–23% below their highs from 2022.

Inside the City of Austin, the same trend holds, though recent luxury listings have kept averages slightly elevated. The average list price has fallen 8.4% since its September 2025 peak, while the median list price is 3.7% below its 2022 high. The average sold price is 8.1% lower than its May 2022 peak, and the median sold price has declined 17.0%. On a per-square-foot basis, both average and median values are 23–29% below their highs.

These comparisons illustrate that while the Austin market has corrected meaningfully since its pandemic-era surge, pricing has now stabilized at sustainable levels, roughly 15–25% below peak across most metrics.

Market Outlook
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As of October 2025, the Austin housing market continues to show clear signs of balance and stabilization. Inventory levels remain higher year over year, absorption has slowed, and most homes are selling below their initial list prices. Across the region, average and median prices are largely flat compared to last year, while within the city, values are still adjusting downward.

For buyers, this environment offers opportunity: more listings to choose from, moderate price stability, and greater negotiating power. For sellers, success depends on pricing strategically, understanding local competition, and staying responsive to buyer feedback. For investors, this market presents a window for disciplined acquisitions, with current prices averaging 15–25% below peak levels, setting the stage for long-term value recovery.

The days of runaway appreciation are behind us—for now, Austin’s housing market is defined by balance, patience, and strategic positioning as both buyers and sellers adapt to a more normalized real estate landscape.​

Austin Housing Market Questions and Answers 

1. Is the Austin housing market still cooling, or has it stabilized?

The Austin housing market has largely stabilized after two years of adjustment. As of October 2025, there are 16,423 active listings across the region — up 14.2% from last year — and Months of Inventory has increased from 5.28 to 5.82, marking a 10.3% rise. That means homes are taking longer to sell, but prices are no longer falling rapidly.
The average sold price is actually up 1.1% year over year to $554,953, while the median sold price has only dipped 1.0% to $416,889. This balance suggests the Austin market isn’t declining anymore; it’s simply adjusting to a more sustainable pace after years of overheated demand.

2. What’s happening with prices inside the City of Austin compared to the suburbs?
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Prices within the City of Austin have softened more than in the surrounding metro area. The median sold price inside the city is now $550,000, down 6.0% year over year, while the average sold price fell 3.4% to $726,930.
By comparison, across the broader Austin region, prices have remained nearly flat — with the average sold price up 1.1% and the median sold price down just 1.0%.
This contrast shows that suburban areas are holding their value better, partly due to greater affordability and steady in-migration. In the city, however, buyers are more cautious, and sellers are making larger concessions to close deals.

3. Are most homes still selling below asking price?
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Yes. Negotiation is now the norm across Central Texas. So far this month, 69.22% of all closed sales have sold below the original list price, compared to 65.93% last month. Another 18.41% of homes sold at list price, while 12.37% sold above asking — nearly unchanged from last month’s 12.18%.
The average sold-to-list price ratio now sits at 97.17%, meaning the typical seller is accepting about a 3% discount from their asking price. Buyers are using this leverage to negotiate closing cost credits or price reductions, especially on homes that have been sitting longer on the market.

4. Are prices expected to rebound soon, or will they stay flat into 2026?
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Based on current trends, prices are more likely to remain flat to modestly soft through the end of 2025. While inventory is up and absorption has slowed, prices haven’t collapsed — they’ve simply corrected from pandemic highs.
Across the region, prices are 10–18% below their 2022 peaks, and in the City of Austin, values remain 17–29% below their highs depending on the metric. That gap indicates there’s still room for long-term recovery, but any near-term price growth will likely be limited by interest rates and buyer affordability. The market’s current tone is one of balance, not appreciation.

5. Which parts of the Austin area are holding up best right now?
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Market performance varies widely by city and ZIP code. Of the 30 cities tracked across Central Texas, 17 (about 57%) posted month-over-month price increases, while 13 saw declines. Year over year, 14 cities reported gains, and 16 recorded losses.
At the ZIP code level, 40 of 75 areas (53%) showed month-over-month price growth, while 32 (43%) saw declines. Only one ZIP code is currently above its 12-month peak, meaning most neighborhoods are still trading below their highs.
In general, markets like Georgetown, Buda, and Leander — which offer newer construction and steady job growth — have remained more resilient, while outer-ring and higher-priced urban segments have seen the biggest adjustments.​