In February, the story of Austin real estate became even more defined: buyer commitment is outpacing the delivery of new inventory, yet the market remains weighted by a backlog of older listings undergoing necessary price corrections. While active inventory still feels abundant, new under-contracts surged by 15.5% year-over-year, even as new listings saw a slight 1.0% decline. This imbalance is beginning to eat into the standing backlog, creating a segmented environment where fresh, well-priced homes move in days, while stagnant inventory becomes a lesson in patience.

Market Overview

Austin closed out February with 552 single-family home sales, representing a slight 0.7% decrease from last year. While sales volume remained steady, pricing reflected a market finding its footing.

Median Sale Price: $575,000, a 4.2% decrease compared to February 2025

Average Sale Price: $759,859, down 5.5% year-over-year

Price Per Square Foot: Averaged $321, a 7.7% decrease from the previous year

Months Supply of Inventory

There are currently 2,250 active listings. The Months of Supply now sits at 4.08, indicating a market that remains in "Seller’s Market" territory by technical definition (< 6 months) but continues to trend toward balance.

Price Range – Months of Supply Status

$200,000 – $299,999: 2.4 Months – Tight Seller's Market

$300,000 – $399,999: 3.0 Months – Seller's Market

$700,000 – $799,999: 3.2 Months – Seller’s Market

$800,000 – $899,999: 3.9 Months – Moving Toward Balance

$900,000 – $1M: 3.1 Months – Seller's Market

$1.2M – $1.39M: 6.5 Months – Buyer's Market

$1.4M+: 9.1 Months – Strong Buyer's Market

Price Cuts & Compression

Price reductions on existing inventory have become the new standard for success in this environment. In February, 44% of active listings carried a price drop. Currently, the average Price Drop: 9% Currently, the median Time to First Price Drop: 80 days

Price Drop Outcomes: In February, listings that adjusted their price went under contract after a median of 18 days.

The Takeaway: The gap between seller expectation and buyer reality is significant. Sellers who bridge that gap upfront move their homes in weeks; those who wait often sit for months.

Sales & Demand Trends

New Under Contracts: In February 2026, new contracts surged to 747, representing a significant 15.5% increase from the previous year. This marks the second consecutive month of rising pending activity, showing that buyers are actively stepping off the sidelines.

New Listings: While demand is rising, new supply saw a slight pullback. There were 1,027 new listings delivered in February, a 1.0% decrease compared to last year.

Average Days on Market (DOM): The average time for a listing to sell was 73 days. While this is a slight increase from previous seasonal norms, homes that implement strategic price adjustments mid-listing are moving much faster, typically going under contract within 18 days of a price drop.

90-Day Trend & Month-to-Date

The Austin single-family market is currently transitioning through a definitive "Spring Thaw." After reaching a seasonal low in December, buyer activity has accelerated significantly, with new contract volume now consistently outpacing the delivery of new inventory.

90-Day Demand Surge: Over the last three months, buyer commitment has seen a steep upward trajectory. New under-contracts have climbed from a low of 497 in December to 617 in January, reaching 747 in February — a 50% increase in demand over just 60 days.

Supply Dynamics: While demand is rising, new listings have not kept pace. New supply peaked at 1,032 in October before dropping seasonally to 383 in December. The recovery to 797 new listings in January and 1,027 in February shows a market where demand is increasingly "eating into" the inventory backlog.

Days on Market (DOM): Average DOM has remained relatively high, ending February at 72 days compared to 81 days in January and 71 days in December. This reflects the continued effort to move older, "stale" inventory through strategic pricing.

March Month-to-Date Snapshot: As of March 9, the early spring momentum is confirmed with 1,533 new pendings for the year-to-date period, an 8.0% increase over the same period in 2025.

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