Austin Market Update - September 2025

[David Ivy]

The September 2025 report from the Austin Board of REALTORS® shows a market settling into its typical fall rhythm, with modest price adjustments and steady sales activity across both Austin and the greater metro area. As we move deeper into the season, buyers appear more deliberate, and sellers are showing increased flexibility, while overall volume remains solid. Here are some key highlights from the report, which compares September 2025 with September 2024:

• The median sales price in the City of Austin decreased 6% to $550,000, while the greater Austin metro declined 1.8% to $420,000, reflecting mild year-over-year softening after a long stretch of stability.
• Closed sales increased 16.6% in Austin to 837 transactions, and rose 6.7% across the metro to 2,416. Correspondingly, sales dollar volume grew 14% in Austin to $610 million, and 5.6% across the metro to $1.33 billion.
• Pending sales climbed 7.7% in Austin and held roughly steady (up <1%) across the metro. New listings were mostly unchanged in Austin (up <1%) and declined 5.7% across the metro, while active listings increased 6.7% in Austin and 10% in the metro
• Inventory levels continued to rise modestly. The City of Austin now has 5.9 months of supply, up 0.3 months year over year, while the metro sits at 5.7 months, up 0.6 months. Both figures remain near the 6.5 months that the Texas A&M Real Estate Center considers a balanced market.
• Homes spent slightly longer on the market, with Austin averaging 73 days (up 6 days year over year) and the metro averaging 76 days (up 5 days). Sellers received 90.9% of their list price in Austin, down from 92% last year, while metro sellers averaged 91.6%, compared to 92.8% in 2024.

Overall, the September data indicates continued balance across the Austin-area housing market, with gradual changes in pricing, listing activity, and time on market consistent with seasonal patterns typically seen as activity tapers in the fall and inventory levels adjust ahead of the year’s end.

The Austin Business Journal recently highlighted the metro’s continued economic strength, noting that the unemployment rate rose slightly to 3.9% in August but remains well below both the Texas (4.7%) and U.S. (4.5%) rates. Local economist Carola Binder of UT-Austin described Austin’s labor market as “still a very low number” compared to statewide and national averages, with job growth across most major sectors.

Overall, Austin’s steady employment base and diverse economy support a positive long-term outlook for housing demand in Austin and Central Texas.

Here are the September 2025 stats for Austin and the greater metro:

Here are the leasing stats for the City of Austin and the greater Austin metro area:

A 30-year fixed rate mortgage is currently around 6.27% interest, down from the 7.26% high seen over the past year. This is the lowest level since September 2024, putting rates today back in line with where they stood a year ago.

For some broader context, here’s a chart for 30-year fixed mortgage rates over the past 5 years:

What if I’m a buyer?

This is one of the best markets for buyers in Austin in years. Inventory is at its highest level in nearly a decade, giving buyers more options and less competition. Prices have fallen noticeably from their 2022 highs, and motivated sellers are more open to negotiation. Homes are selling for about 93% of list price, and multiple offers are the exception, not the norm. Buyers have stronger negotiating power, more time to make decisions, and greater flexibility in choosing location and condition. With mortgage rates stabilizing in the 6s, affordability has improved, and buyers can still pursue seller-paid rate buydowns or builder incentives to make ownership more manageable.

What if I’m a seller?

Austin’s housing market still shows solid demand and stable pricing, with most homeowners sit on substantial equity. However, competition among listings is increasing, and buyers are more selective and often expect concessions. Homes now average about 76 days on market, and many see at least one price reduction before selling. Sellers need to price competitively, prepare carefully, and address potential buyer concerns before listing. With balanced conditions and steady demand, well-presented and properly priced homes continue to attract buyers, while overpricing can lead to lost time and, very often, lost money.