Staying informed about the Austin housing market is crucial, whether you're looking to buysell. See what’s happening in the Austin housing market and how broader economic trends and local activity are creating a more balanced and confident real estate environment.
As late summer makes way for the fall season, the Austin metro wrapped up August on a steady note. While elevated borrowing costs remain top of mind for buyers, a strong labor market and improved purchasing power continue to support healthy market activity across the area.
Let's look at August’s numbers:
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Active Listings — August ended with 13,676 active listings, marking a 6.5% decrease from last year and a 0.9% decrease from July.
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Home Prices — The median home price was $412K, decreasing 6.4% year over year and 5.3% month over month.
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Days on Market — Homes spent an average of 66 days on the market, down 3 days from the year before and up 3 days from July.
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Pending Sales — Pending sales totaled 2,623, up 1.5% from last year and down 7.4% from last month.
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Closed Sales — August saw 2,501 closed sales, a decrease of 7.3% from last year and 8.7% from July.
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Housing Inventory — Housing supply stood at 5.1 months, 0.4 months lower than a year ago and 0.4 months higher than in July.
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Market Snapshot — Over 10,000 homes are on the market, selling for an average of 93.2% of the original list price; Compass listings achieved an average of TK% of their original list price and sold TK days faster than the MLS average.
Source: Austin Board of REALTORS®, Austin-Round Rock-San Marcos Metropolitan Statistical Area.
Strong job market continues to support the economy
Austin’s broader economic backdrop continues to provide a solid foundation for the regional housing market. Since early 2020, employment in Austin has surged 24.1%, significantly outpacing the 11.3% statewide average and leaving the national benchmark (4.3%) far behind.
Crucially, the unemployment rate held steady at 3.8% in July, outperforming both the Texas rate of 4.5% and the national average of 4.1%. Combined with hourly wage growth of 4.8% year-over-year, Austin workers continue to see their purchasing power hold strong against national averages. This consistent employment and wage growth serves as a major stabilizer for housing, insulating local housing demand against macroeconomic headwinds.
Austin leads in housing affordability
When pairing local buying power with available inventory, Austin continues to stand out nationally for its proactive approach to housing supply. According to recent research from Realtor.com, the Austin metro area secured a spot among the top 10 metros nationwide for housing affordability. The ranking evaluated two core factors—new home construction and real-time purchasing power for today’s buyers—with the pace of new home development standing out particularly.
That dynamic is easy to spot in this month’s numbers. August ended with 13,676 active listings, giving buyers a healthy pool of properties to choose from without the pressure of bidding wars or cutthroat competition. Paired with a median home price that settled at $412K (down 6.4% year over year), this inventory gives first-time and move-up buyers critical breathing room to offset higher borrowing costs and keep homeownership within realistic reach.
Mortgage rates hold steady amid macroeconomic shifts
One major factor that counters strong local wages and job growth is the broader economy and its impact on mortgage rates. In August, average 30-year fixed mortgage rates hovered around 6.6%. However, the absence of volatile rate spikes and the general consensus that borrowing costs will remain in this range for the foreseeable future has brought predictability. Generally, rate stability, even at elevated levels, allows both buyers and lenders to budget confidently and use seller concessions without fear of unexpected swings.
This local buyer confidence is showing up in the numbers. According to NAR, the Austin metro area ranked among the top ten markets in the U.S. with the biggest annual increases in pending home sales. Looking at the data, August closed with 2,623 pending sales, up 1.5% year-over-year. Even with higher financing costs, local contract activity shows the market remains healthy and adaptable.
Late-summer seasonality sets in
The transaction pace reflects a predictable seasonal pattern: August wrapped up with 2,501 closed sales, an 8.7% dip from last month, which is standard as households slow down their moves around the back-to-school calendar. At the same time, housing supply reached 5.1 months, up from 4.7 months in July. While crossing the five-month mark technically places Austin within the statistical definition of a balanced market, everyday negotiating power tells a more buyer-friendly story.
According to recent Redfin data, active home sellers in Austin still significantly outnumber buyers, tilting leverage toward house hunters in both timelines and closing terms. Homes spent an average of 66 days on the market in August, while properties sold for an average of 93.2% of the original list price. For sellers, this reinforces the importance of precision pricing and working with a local expert to position a home competitively from day one.
Prepare for Your Next Move
As we transition into the fall season, changing inventory and steady pricing create opportunities for those ready to make a move. Navigating today’s environment requires more than broad assumptions; it takes a focused strategy tailored to your neighborhood and personal goals. Connect with a Compass agent for the local data, market expertise, and dedicated guidance.
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