Austin Real Estate Weekly Market Update – September 18, 2025

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, September 18, 2025 at 10:08 am

The Austin housing market continues to stabilize as September 2025 progresses. Active listings across both the Austin-Area MLS and the City of Austin are higher than this time last year, with Months of Inventory also expanding—indicating a slower pace of absorption and more options available to buyers. Pricing movement remains restrained, with average and median sold values showing little to no year-over-year change. Compared to the peak levels reached in 2022, today’s market reflects a shift toward equilibrium: inventory is rising, demand is steady, and conditions are aligning into a more balanced environment for buyers, sellers, and investors. 

Inventory Growth and Market Balance

Active residential listings across the Austin-Area MLS reached 16,878 in mid-September 2025, an 8.8 percent increase from 15,514 one year ago. Compared to last week’s 16,954 listings, inventory has edged down slightly, but the overall trend remains higher year over year. Months of Inventory also rose from 5.28 last year to 5.79 today, a 9.6 percent gain that points to slower absorption of available homes.

Inside the City of Austin, the pattern is similar though somewhat more restrained. Active listings climbed 7.1 percent year over year, increasing from 4,641 in 2024 to 4,970 this year. Months of Inventory expanded from 5.52 to 5.82, a 5.5 percent rise. These figures confirm that buyers now have more options than they did a year ago, and the pace of sales relative to supply is slower than last September.

Pricing Stability Across the MLS
​
Pricing trends across the Austin-Area MLS remain largely stable. The average list price for active homes rose 1.8 percent, from $567,816 in 2024 to $578,159 in 2025. The median list price increased 0.7 percent, moving from $429,990 to $433,000. On the sales side, the average sold price improved 1.7 percent year over year, from $547,457 to $556,572. The median sold price showed no change, holding at $420,000.

Compared to last week, both list and sold prices have shifted very little, highlighting a market where values are relatively flat. This combination of higher inventory and steady pricing continues to signal a balancing environment rather than one dominated by rapid appreciation or steep declines.

Pricing Trends in the City of Austin
​
Within the City of Austin, pricing movement has been mixed. The average list price rose 0.7 percent, increasing from $779,102 to $784,525. The median list price dipped slightly by 0.2 percent, from $600,000 to $599,000. Closed sales echoed this restrained trend. The average sold price rose 0.8 percent year over year, from $747,343 to $752,996. The median sold price, however, declined 2.4 percent, dropping from $589,000 to $575,000.

On a week-over-week basis, the median sold price in Austin is down from last week’s $590,000, underscoring that pricing remains under modest pressure in the city’s core.

Negotiation and Buyer Leverage
​
Negotiation continues to be a defining feature of the current market. So far this month, 69.26 percent of closed sales in the Austin-Area MLS have transacted below list price. This is up from 65.95 percent last month, confirming that more buyers are securing discounts relative to asking prices. At the same time, 18.33 percent of homes have sold at list price, down from 21.86 percent in August. Roughly 12.41 percent of sales have closed above asking, nearly unchanged from last month’s 12.19 percent but below July 2024’s 13.24 percent.

The average sold-to-list price ratio now stands at 96.7 percent, further illustrating that sellers are accepting offers under asking in most transactions.

Regional and ZIP Code Variations
​
Conditions across Central Texas remain highly localized. Among the 30 tracked cities, 13 (43 percent) posted month-over-month price increases, while 17 (57 percent) recorded declines. On a year-over-year basis, only 8 cities (27 percent) saw gains, while 22 (73 percent) registered losses. None of the tracked cities are above their 12-month peak, underscoring the broad nature of the regional correction.

At the ZIP code level, 29 out of 75 tracked areas (39 percent) reported month-over-month increases, while 44 (59 percent) showed declines. Year over year, 23 ZIP codes (31 percent) posted gains, while 52 (69 percent) saw decreases. Only one ZIP code in the region is currently above its 12-month peak, leaving 74 still below.

Prices Relative to Peak Levels
​
Prices across both the Austin-Area MLS and the City of Austin remain meaningfully below peak values from 2022 and 2023. In the MLS as a whole, the average list price is down 12.1 percent from its March 2023 high, while the median list price is 14.9 percent below the May 2022 peak. The average sold price has fallen 16.1 percent from May 2022, and the median sold price is down 21.0 percent. On a price-per-square-foot basis, current values are 22 to 24 percent lower than peak.

Within the City of Austin, the story is similar. The average sold price is 14.5 percent below its May 2022 high, while the median sold price has dropped 18.4 percent. On a price-per-square-foot basis, Austin homes are trading 23 to 27 percent below their 2022 peak levels. The only category to reach a new high this year is the city’s average list price, which set a fresh record at $989,635 in September 2025.

Market Outlook
​
The Austin housing market as of September 18, 2025 reflects a transition into balance. Inventory levels are higher than both last year and last month, absorption has slowed, and most sales are closing below list price. Year-over-year pricing is stable in the MLS overall, but the City of Austin is seeing some softening, particularly in its median sold price. Compared to the highs of 2022 and 2023, values remain considerably lower, suggesting buyers still have room to negotiate while sellers must remain realistic in their pricing strategies.

For buyers, the current conditions provide more inventory, slower competition, and leverage in negotiations. For sellers, success depends on accurate pricing and flexibility in contract terms. For investors, the message is clear: the days of double-digit appreciation are behind us for now, but today’s market offers opportunities for disciplined acquisitions in a more predictable environment.​

Austin Housing Market FAQ

What is the latest update on the Austin housing market?

Active listings in the Austin‐Area MLS have increased about 8.8% year over year, from 15,514 homes in 2024 to 16,878 in 2025. Months of Inventory (how long it would take to sell all active homes at the current pace) has gone up from 5.28 to 5.79, a 9.6% rise. In the City of Austin, active listings are up about 7.1%, and its Months of Inventory has climbed from 5.52 to 5.82 (a 5.5% increase). Pricing is relatively flat: average and median sold prices show only modest gains or are stable, and median sold price in the City of Austin has dropped slightly. Buyers have more options, and the market is moving toward balance rather than overheating.

Are Austin home prices falling?

Not broadly. In the Austin‐Area MLS, average sold prices are up 1.7% year over year, and median sold price is stable at $420,000 with no change. In the City of Austin, the average sold price is up 0.8% year over year, but the median sold price has dropped by 2.4%. So while most price measures are holding steady or rising slightly, some segments (especially at the median in Austin proper) are seeing modest declines.

Is housing going to get cheaper in 2025?

Based solely on the available data up to now (September 2025), there’s no strong evidence that housing will get significantly cheaper across the board. Inventory is rising, which usually puts downward pressure on prices. But average prices are still nudging upward (MLS +1.7%, City +0.8%) and median prices are largely stable except for small declines in some areas. If demand weakens further or inventory continues to grow, there may be more downward pressure. But as of now, the market seems more likely to stay flat or have modest shifts rather than large drops.

Is Austin a buyers or sellers market?

The data suggests Austin is leaning more toward a balanced to buyer‐advantaged market than a seller’s market. Key indicators: rising inventory (both MLS and City), slower absorption (higher Months of Inventory), a high share of homes selling below list price (69.26%), a relatively low share selling above list, and a sold‐to‐list price ratio around 96.7%. These all give buyers more leverage than in a seller’s market.

How is the housing market in Austin in 2025?

In 2025 (up through the latest data), Austin’s housing market is in a period of stability and recalibration. Supply is growing (more homes listed), absorption is slower (higher Months of Inventory), and prices are showing modest gains at best, with some small declines in median values in the City. The market has moved away from sharp appreciation, and is neither booming nor collapsing—it’s more steady, offering opportunities for buyers, but requiring realistic expectations from sellers.

Is it better to buy or rent in Austin now?

Using only this data, buying may be increasingly attractive for those who can afford it, particularly because buyer leverage is stronger (more inventory, many home sales below list price, more options). If rental rates remain high, locking in a purchase now could make sense, especially since prices aren’t rising steeply. However, for someone unsure about commitment, renting still offers flexibility until further clarity about long-term price and demand trends emerges. It really depends on personal financial situation, how long one plans to stay in the home, and whether they can handle carrying costs.​