Austin Housing Market Report September 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 continued to show healthy engagement through September as buyers and sellers adjusted to a calmer, more predictable pace. The area ended the month with 13,665 active listings and 5.7 months of inventory, while the median price held near $420K. Pending sales edged up slightly from last year, signaling that lower mortgage rates and consistent supply are helping keep transactions moving as fall begins.

Let's look at September’s numbers:

• Active Listings Up YoY — September closed with 13,665 active listings, a 10% increase from last year and a slight 3.9% decline from August.
• Home Prices Ease Modestly — The median home price was $420K, 1.8% lower than last year and 5% below last month.
• Market Moving Slower — Homes averaged 76 days on market, 5 days longer than last September and 8 days longer than August.
• Buyer Activity Steady — Pending sales totaled 2,445, showing a less than 1% increase from last year and an 8% decline month-over-month.
• Inventory Holds Near Six Months — Housing supply measured 5.7 months, an increase of 0.6 months from last year and a 0.2-month decrease compared to August.
• Market Snapshot — Over 13,000 homes are on the market, selling for an average of 91.6% of the original list price; Realty Austin Compass listings achieved 97.7% of their original list price and sold 21 days faster than the MLS average.

Mortgage Application Increase 

The 30-year fixed rate now averages 6.22%, according to Mortgage News Daily as of Monday, October 20th, holding near its lowest point of the year. Rates have eased from the mid-6% range over the past month, keeping borrowing costs more stable for buyers. The Mortgage Bankers Association reports a 29% increase in mortgage applications in mid-September, with purchase activity up 20% from the same period last year, as more buyers re-enter the market ahead of the holidays. HousingWire’s Logan Mohtashami notes that purchase applications have been trending higher for several consecutive weeks, supported by improving affordability and rate stability. In Austin, that momentum has translated into consistent contract activity. Unlock MLS data shows 2,445 pending sales in September, up 0.7% year over year, as lower rates help keep buyers engaged.

As more buyers take advantage of these favorable conditions, preparing early can help strengthen their position in a competitive market. Learn how to qualify for a home loan to understand the steps, documents, and financial strategies that make the process smoother from pre-approval to closing.

Shutdown Impacts Housing Activity

The ongoing federal government shutdown is creating complications across multiple parts of the housing sector. New flood insurance policies through the National Flood Insurance Program are on hold, while USDA rural loans and IRS income verifications are delayed. Some FHA, VA, and HUD operations are running with limited staff, leading to longer timelines for certain transactions. 

The shutdown has also paused federal housing grants and community development programs, delaying funding for local projects and assistance initiatives. New home construction that depends on federal reviews or permits could face short-term setbacks. Despite these disruptions, most conventional loans and private transactions continue to move forward with minimal impact. 

Economic Conditions Support Stability

Recent data indicates that inflation is holding steady, with prices rising 2.9% year-over-year in August and core inflation at 3.1%, according to the Bureau of Labor Statistics. Nationally, the economy added 22,000 jobs, while unemployment held at 4.3%, signaling slower but steady growth.

Locally, the Austin–Round Rock–San Marcos metro area reported an unemployment rate of 3.9% in August, according to BLS regional data. Total nonfarm employment in the region stands at about 1.37 million, supported by continued activity in construction, healthcare, and professional services. September figures have not yet been released, but Austin’s economy appears stable heading into the final quarter of the year.

Stable employment conditions combined with consistent inflation trends could give the Federal Reserve confidence to continue gradual rate cuts through the end of 2025. If borrowing costs remain steady or decline slightly, mortgage affordability may improve and help sustain housing demand across Central Texas.

Looking Ahead to Q4

Economic forecasts point to a stable finish for the housing market as 2025 winds down. According to Fannie Mae’s September 2025 Economic Developments Forecast, mortgage rates are expected to stay in the low-6% range through the end of the year before gradually dipping below 6% in 2026. Fannie Mae also projects total U.S. home sales to increase 9.2% in 2026 compared with 2025, with gains expected to build as affordability improves and rates ease further.

With inventory expanding and buyer confidence improving, Austin moves into Q4 with stronger buyer opportunities. Unlock MLS reports 13,665 active listings and nearly six months of supply, giving the market room to grow without pressure on prices. Steady values and consistent contract activity show Central Texas maintaining momentum and setting the tone for a competitive start to 2026. Statewide analysis from the Texas Real Estate Research Center points to consistent construction activity and ongoing housing demand across Texas. For Austin, these conditions suggest a steady close to the year as supply, pricing, and buyer activity remain well aligned heading into 2026.

For sellers looking ahead to 2026, thoughtful planning and strategic marketing can make all the difference. Explore a three-phased marketing strategy designed to maximize visibility and help your home stand out in Austin’s competitive market.

Inspiring Moves Ahead

As Austin’s market finds its rhythm again, opportunities are opening for both buyers and sellers to make meaningful moves before year-end. Realty Austin Compass is here to help you move forward with confidence and find a place you’ll love to call home.

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