Market Overview

Austin closed out August with 736 single-family home sales, marking a 4.8% increase year-over-year. Prices also climbed, with the median sales price reaching $645,000 (+4.9% YoY) and the average sales price rising to $842,555 (+1.8% YoY). The average price per square foot was $341.

This steady growth underscores a resilient housing market, even as inventory levels remain elevated.

Inventory & Market Balance

- Months of Supply: 4.62 months (down from July’s levels). A balanced market is considered around 6 months, so Austin remains a seller-leaning but more balanced market compared to recent years.
- Active Listings: 3,662 homes in August (+10.1% YoY).
- New Listings: 925 (-1.5% YoY).
- New Under Contracts: 745 (+16.8% YoY).

Since June, new listings have generally outpaced pending contracts, contributing to a steady rise in active inventory.

Pricing, Discounts & Buyer Leverage

- Price Reductions: 58% of active listings had a reduction in August, averaging 9% below original list price.
- List-to-Close Price Ratio: Homes sold at 91.81% of list price.
- Over/Under Asking %: -3.5% in August.
- Time on Market:
   • Average: 63 days (up 6 days YoY).
   • Median: 46 days.
- Homes with price drops went under contract after a median of 23 days.

Buyers clearly have leverage, especially with concessions and negotiation opportunities, but well-priced homes continue to attract fast-moving offers.

90-Day Trend

• Inventory has been rising since June.
• 925 new listings vs. 745 pending contracts in August.
• Market activity shows slower absorption, consistent with the seasonal trend toward fall.

What’s Ahead: Fall 2025 Outlook

Conditions are expected to remain buyer-friendly into the next 60 days:
- Active Inventory: 3,398 listings as of September 9th.
- Price Cuts: Still impacting 58% of listings.
- Median Days on Market: 46, slower than seasonal norms.

For Sellers: Standing out is key. Homes that are competitively priced and well-presented will capture attention faster in this crowded field.

For Buyers:
- You’ll find more choice and room to negotiate.
- Be ready to act quickly on well-priced homes, which can still draw multiple offers.

Economic & Mortgage Snapshot

The broader economy is shifting:
- Jobless claims are rising, pointing to a cooling labor market.
- Markets are optimistic about potential Federal Reserve rate cuts.
- 30-year mortgage rates have already fallen to 6.5%, their lowest level in 11 months.

Why it matters:
- Lower rates boost buyer purchasing power and affordability.
- However, if rates continue to drop, more buyers may enter the market, increasing competition.

This is a strategic window for buyers to secure favorable financing and negotiate strong terms before demand potentially accelerates again.

*Data sourced from the Austin Board of Realtors MLS & OriginPoint Mortgage Partner