Austin Housing Market Report July 2025

Staying informed about the Austin housing market is crucial, whether you're looking to buy or sell.  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.

Austin’s housing market gave buyers more options in July, with more than 15,000 active listings, up nearly 16% from last year. The median home price settled at $435K, down 3.3% year over year, highlighting a slight shift in affordability as inventory builds. With more choices on the market and mortgage rate adjustments shaping demand, conditions are aligning to keep activity moving through the second half of the year.

Let’s look at July’s numbers:

• Listings Hit 15,000+ — July closed with 15,002 active listings, up 15.9% year-over-year but down 2% from June.
• Home Prices Slide — The median home price dropped to $435K, representing a 3.3% annual decrease and a 3% month-over-month decline.
• Faster Turnaround — Homes averaged 60 days on market, 12 days faster than June but 3 days longer than July 2024.
• Buyer Demand Grows — Pending sales rose to 2,829, up 15.3% year-over-year and 4% higher than last month.
• Supply Continues to Build — Housing supply reached 6.1 months, up 0.6 months from June and 0.9 months higher than a year ago.
• Market Snapshot — Over 15,000 homes are on the market, selling for an average of 93.1% of the original list price; Realty Austin Compass listings achieved 98% of their original list price and sold 6 days faster than the MLS average.

Mortgage Rates Reach 2025 Lows

The average 30-year fixed mortgage rate decreased to 6.58% in July, the lowest weekly average since October of last year, according to Freddie Mac. Some lenders briefly offered rates as low as 6.53%, a new year-to-date low reported by the Wall Street Journal. The drop has already sparked a surge in refinancing, with applications jumping more than 23% in a single week as homeowners rushed to take advantage, according to MarketWatch. Inflation also held steady in July, with the Consumer Price Index only rising 2.7% year-over-year, a sign that price growth is not increasing rapidly. Together, steady inflation and easing rates are giving buyers more confidence, reflected in pending contracts that climbed more than 15% compared to last year. If rates continue to ease into the fall, the typically slower season may see unusual momentum as more buyers reenter the market.

"All eyes are on what the Federal Reserve does next, since even a small adjustment could shift the path of mortgage rates. As we head into the fall, those decisions will play a big role in shaping how active the market becomes.” - John Coake, Senior Vice President at Realty Austin Compass.

Employment Growth Supports Housing

Taking advantage of lower rates depends on steady income, and Texas continues to deliver on the jobs front. In July, Texas added 8,700 nonfarm jobs, bringing total employment to 14,333,800 according to the Texas Workforce Commission. Over the past year, Texas has gained 232,500 jobs, a growth rate of 1.6% that outpaces the national average. The statewide unemployment rate held steady at 4.0%, even as national reports point to slower hiring and rising unemployment claims.

Closer to home, the Austin–Round Rock–San Marcos metro recorded a much lower unemployment rate of 3.4% in June, with nonfarm payrolls expanding by about 1.4% year over year, according to the Bureau of Labor Statistics. This combination of statewide strength and local momentum is helping sustain housing demand in Austin, underscoring the region’s economic resilience.

Affordability Shapes Buyer Activity

Affordability remains a driving factor in Austin’s housing market. According to Unlock MLS, the median home price of $435K, down 3.3% from last year, has made homeownership more accessible. Pending contracts are up 15.3% year-over-year, underscoring how buyers are responding to improved conditions. Inventory also grew to 6.1 months of supply, which the Real Estate Center at Texas A&M reports is the highest level in the Austin–Round Rock–San Marcos area since 2011. With homes averaging 60 days on the market, buyers now have more options and flexibility, while affordability remains a key driver of activity.

"Affordability is still the biggest factor in today’s market. Even with prices holding steady, shifts in mortgage rates will determine how far a buyer’s budget can stretch this fall. Our goal is to help clients find the best fit within their means, no matter how the market shifts." - Jennifer Korba, Senior Agent Success Manager at Realty Austin Compass

Exploring Austin Communities

As affordability pressures persist, many buyers are turning their focus to the suburbs. CultureMap Austin ranked Leander’s 78641 ZIP code among the hottest in the nation, recording 3,349 inbound moves between January and May of this year. Strong schools, planned communities, outdoor amenities, and convenient commuter access to central Austin are fueling demand in suburban markets such as Leander, Cedar Park, and Georgetown. Buyers exploring different areas may also find our guide to neighborhoods in Austin for first-time homebuyers useful as they compare city living with suburban opportunities.

Inspiring Your Next Move

Opportunity is expanding across the Austin area, with improving affordability and a wide range of neighborhoods to explore. At Realty Austin Compass, we believe every move begins with a vision for the life you want to build. Meet our agents or browse the newest listings to start your journey today.

For the latest market updates, follow us on social media @realtyaustincompass. Subscribe to our market newsletter by clicking "sign up" in the top right corner of our website.