Austin Housing Market Report September 2025
Staying informed about the Austin housing market is crucial, whether you're looking to buy or sell. Explore current trends in pricing, inventory, and buyer activity — and see how broader economic forces are supporting a more balanced, confident real estate environment.
Austin’s housing market remained healthy in September as buyers and sellers continued adjusting to a calmer and more predictable pace. The month closed with 13,665 active listings and 5.7 months of inventory, while the median price held near $420K. Pending sales showed a slight increase year over year, reflecting lower mortgage rates and stable supply heading into fall.
September Market Highlights
- Active Listings Up YoY — 13,665 active listings, up 10% vs. last year and down 3.9% from August.
- Median Home Price at $420K — Down 1.8% year over year and 5% lower month over month.
- Homes Moving Slower — Average of 76 days on market, 5 days slower YoY and 8 days slower MoM.
- Buyer Activity Stable — 2,445 pending sales, slightly higher than last year (under 1%) but down 8% MoM.
- Balanced Inventory — 5.7 months of supply, up 0.6 months YoY and down just 0.2 months from August.
Market Snapshot
More than 13,000 homes are currently available, selling for an average of 91.6% of their original list price. In comparison, Realty Austin Compass listings sold for 97.7% of original list price and 21 days faster than the MLS average.
Mortgage Application Increase
The 30-year fixed rate averages 6.22%, according to Mortgage News Daily as of Monday, October 20th, remaining near its lowest point of the year. Rates have eased from the mid-6% range over the past month, helping improve affordability and stability for buyers.
The Mortgage Bankers Association reports a 29% increase in mortgage applications in mid-September, with purchase activity up 20% year over 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.
In Austin, that momentum is visible in consistent contract activity. Unlock MLS shows 2,445 pending sales in September, up 0.7% YoY, reflecting buyer engagement supported by improving affordability.
As more buyers take advantage of 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 streamline pre-approval through closing.
Shutdown Impacts Housing Activity
The ongoing federal government shutdown is affecting several areas of the housing sector. New flood insurance policies through the National Flood Insurance Program are paused, while USDA rural loans and IRS income verifications are experiencing delays. FHA, VA, and HUD operations continue with limited staff, extending transaction timelines.
Federal housing grants and community development funding have also been delayed, impacting local projects and assistance programs. New home construction that depends on federal reviews may see short-term disruption. Most conventional loans and private transactions continue moving forward normally, minimizing widespread market impact for now.
Economic Conditions Support Stability
Inflation remains steady, with prices up 2.9% YoY in August and core inflation at 3.1%, according to the Bureau of Labor Statistics. Nationally, the economy added 22,000 jobs and unemployment held at 4.3%, signaling slower but steady growth.
Locally, the Austin–Round Rock–San Marcos metro area recorded 3.9% unemployment in August, with total nonfarm employment around 1.37 million. Growth continues across construction, healthcare, and professional services heading into the final quarter of the year.
Stable employment paired with easing inflation may give the Federal Reserve confidence to continue gradual rate cuts through the end of 2025. If mortgage rates hold steady or decline, affordability could continue improving and support sustained buyer demand in Central Texas.
Looking Ahead to Q4
Forecasts point to a stable finish for the housing market as 2025 winds down. Fannie Mae’s latest economic forecast expects mortgage rates to stay in the low-6% range through year-end before gradually dipping below 6% in 2026. U.S. home sales are projected to rise 9.2% in 2026 as affordability improves.
With inventory expanding and buyer confidence rising, Austin enters Q4 with stronger opportunities for buyers. Unlock MLS reports 13,665 active listings and nearly six months of supply, giving the market room to grow while keeping pricing steady.
Statewide insights from the Texas Real Estate Research Center show continued construction activity and persistent demand — positioning Austin for a stable close to the year and a strong start to 2026.
For sellers planning ahead, strategic marketing can help maximize exposure and value. Explore a three-phased marketing strategy designed to elevate your listing in Austin’s competitive market.
Inspiring Moves Ahead
As Austin’s market finds its rhythm again, opportunities are growing for both buyers and sellers to take meaningful next steps. Realty Austin Compass is here to help you move forward with confidence — and connect you with a home you’ll love.
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