Austin Housing Market Report July 2026

Posted by Realty Austin on August 14th, 2026

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

As mid-summer transitions into back-to-school season, Austin’s housing market as a whole is still going strong. While rising costs like homeowners insurance and elevated mortgage rates are mitigating factors, the underlying demand remained steady through July, bolstered by a healthy regional job market. Local buyers and sellers are navigating a predictable market where informed preparation and clear communication continue to drive success.

Let's look at July’s numbers:

• Active Listings — July ended with 13,796 active listings, marking a 9.9% decrease from last year but a 4.2% increase from June.
• Home Prices — The median home price reached $435K, increasing 1% year over year and decreasing 3.3% month over month.
• Days on Market — Homes spent an average of 63 days on the market, going up 1 day both from the year before and from June.
• Pending Sales — Pending sales totaled 2,833, up 4.1% from last year and down 5.3% from last month.
• Closed Sales — July saw 2,739 closed sales, an increase of 4.4% from last year and a decrease of 7.5% from June.
• Housing Inventory — Housing supply stood at 4.7 months, 1.1 months lower than a year ago and 0.3 months higher than in June.
• Market Snapshot — Over 13,000 homes are on the market, selling for an average of 93.7% of the original list price; Compass listings achieved an average of 97.9% of their original list price and sold 28 days faster than the MLS average.

Homeowners insurance driving up housing costs

According to a recent report from Unlock MLS, homeowners insurance has become the fastest-growing house-related expense in Texas. The report shows premiums surging 60% between 2019 and 2024. While property taxes, utilities, and mortgage payments have all trended upward, none have outpaced income growth as aggressively as insurance. To put that in perspective, the median household income in Texas grew 20.8% from 2019 to 2024 according to the Federal Reserve Bank of St. Louis. Driven largely by climate volatility, severe weather events, and macroeconomic factors, these spikes alter how households need to budget for long-term homeownership.

Both buyers and sellers should adjust their approach to streamline the process. Buyers can stay ahead by factoring in realistic insurance quotes early in their search to accurately forecast their monthly budget. For sellers, transparency regarding property history and recent upgrades can ensure a smoother path to closing.

Pragmatic  pricing continues to enable success

With 13,796 homes on the market to choose from and properties closing at 93.7% of their original list price, sellers who price with market realities in mind are meeting eager buyers halfway. July’s total of 2,739 sales confirms the continuing underlying demand. With 4.7 months of housing inventory giving buyers ample breathing room, well-prepared sellers remain in a strong position to transact. While the market has naturally dialed back its pace as the back-to-school season approaches, the year-over-year dynamics point to a healthier pace and a reassuring foundation for anyone ready to move.

Separating luxury shifts from broader market pricing

The local luxury market saw some hot months recently that previously pushed up top-line averages. Now, that upper tier has naturally corrected itself, adjusting asking prices as part of a normal cool-down phase that is actually helping homes move more quickly. Although asking prices fell 9.6% year-over-year, an Austin-based Compass agent notes that this pricing is grounded in data and, thanks to seller flexibility, both parties walk away happy at the end of the day. 
 

When looking at the general housing market, the overall pricing situation is much more predictable. While July’s median home price settled at $435K—down 3.3% from last month—a slight month-over-month dip is normal for this month as seasonal activity balances out after the frenzy of June.

Elevated rates meet a prepared market

Alongside luxury sector adjustments, the broader macroeconomic landscape also played a part, as 30-year fixed mortgage rates hit their highest in a year, hovering at 6.66% nationally in the last week of July. Fortunately, Austin benefits from broader statewide economic resilience. Recent data from the Texas Real Estate Research Center shows that Texas job growth remains strong, consistently outpacing the broader U.S. rate, with the Austin-Round Rock metro area leading major Texas metros in employment growth. This robust local labor market provides a critical buffer, stabilizing the macro headwinds. 
 

With pending sales at 2,833, overall activity remains above and better paced than last year’s marks, while homes are averaging a steady 63 days on the market. As experts are keeping an eye on what comes next in terms of interest rates, inventory shifts, and price cuts, the local market entered the second half of the year on remarkably steady ground.

Prepare for Your Next Move 

If you want to catch the tail end of the summer season, there’s no time to waste. Connect with a Realty Austin Compass expert to benefit from the hyper-local market insights, guidance every step of the way, and insider strategies that can help you reach your real estate goals.

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