February 2026 Austin Metro Real Estate Update

As expected, February began to show the early signs of the spring market approaching. Activity across the Austin Metro typically begins to pick up toward the end of winter as buyers and sellers start preparing for the busiest months of the year.

While pricing metrics remain slightly lower than last year, the market is gradually gaining momentum. Buyer activity improved compared to last year, and inventory continues to expand, giving buyers more options than they’ve had in several years.

In summary, after reviewing the February data, total sales increased 7.5% year over year, and pending contracts rose 10.2%, signaling stronger demand heading into the spring market. At the same time, average and median sold prices declined 4.4% and 4.7% respectively, while active listings increased 8.6%. Inventory levels rose to 5.3 months, and average days on market increased to 111 days, pointing to a more balanced market environment.

Let’s dive a little deeper.

Average and Median Price Trends Continue to Normalize

In February, the average sold price across the 5-county Austin Metro declined to $537,359, while the median sold price dropped to $407,731, representing decreases of 4.4% and 4.7% year over year.

While price declines can sound dramatic at first, they reflect the continued market adjustment following the rapid appreciation that occurred during the pandemic years. Month-to-month price movement has remained relatively stable, suggesting the market may be approaching a new equilibrium as inventory increases and affordability slowly improves.

Sales Activity Increased Compared to Last Year

Total residential sales increased to 2,102 homes, representing a 7.5% increase compared to February 2025.

Despite slightly lower home prices, overall transaction activity increased enough to push total dollar volume to approximately $1.13 billion, a 2.7% increase year over year.

However, year-to-date volume remains about 2.2% lower than the same period last year, reflecting the slower start to the year that has become common in the current interest rate environment.

Pending Contracts Suggest Stronger Spring Demand

One of the most encouraging indicators in the February data is the increase in pending or under-contract homes, which rose 10.2% year over year to 2,602 units.

Pending contracts are a forward-looking indicator of demand, and Austin typically follows a predictable seasonal pattern where pending activity begins to rise in late winter before peaking in late spring or early summer.

The increase seen in February suggests that buyers are beginning to re-enter the market after a relatively quiet winter season.

New Listings Continue to Grow

New listings increased to 4,086 homes in February, representing a 5.1% increase year over year.

Active listings climbed even higher to 14,676 homes, an 8.6% increase compared to last year.

The increase in inventory has been one of the most noticeable shifts in the Austin housing market over the past two years. During the pandemic boom, inventory reached historically low levels, creating intense competition and rapid price appreciation. Today’s market is much different, with buyers having more choices and more negotiating power.

Inventory and Days on Market Increase

The Austin Metro closed February with 5.3 months of inventory, approaching what economists generally consider a balanced market between buyers and sellers.

Average days on market increased to 111 days, reflecting longer timelines for homes to go under contract and a more deliberate pace for buyers making purchasing decisions.

While well-priced homes in desirable locations are still moving, listings that are overpriced are taking longer to sell in today’s environment.

If You’re a Buyer

Rising inventory and slightly lower prices have created a more favorable environment for buyers compared to the past several years.

Buyers now have more options and more negotiating leverage. However, if mortgage rates decline later in the year, competition could increase quickly. Many buyers choose to purchase before rates drop significantly and refinance later if borrowing costs improve.

If You’re a Seller

The Austin housing market remains healthy, but it has become more price-sensitive than it was during the peak pandemic years.

Homes that are priced appropriately and marketed well are still selling, but buyers are paying close attention to value and condition. With days on market increasing, pricing strategy and presentation are more important than ever.

If you’re considering listing this spring or summer, preparing early and pricing strategically will help attract the most buyer interest.

Always remember that all of this depends on your specific situation and area. If we can help you in any way, please reach out!

Thanks, and have a great one!