September 2025 Austin Housing Market: A Steady Fall Season with Shifting Buyer Dynamic
The Austin metro real estate market wrapped up September with a mix of familiar seasonal cooling and a few notable shifts. As we move deeper into fall, we’re seeing signs of buyer hesitation alongside more price flexibility. While inventory levels have ticked up and days on market have grown, sales volume remains solid, and we continue to watch mortgage rates closely, as recent dips could spark renewed interest.
Here are some of the most interesting takeaways from September’s data:
Total sales were up 13.1% year over year, with 2,600 closings across the 5-county metro
Average and median sold prices are both down compared to last September
New listings dropped 2.0%, continuing a slowing trend in seller activity
Active inventory rose 12.0%, giving buyers more options
Withdrawn and expired listings jumped 11.7%, a sign of pricing pushback from the market
Average & Median Sold Price Summary
Average and median prices have cooled compared to September 2024, which aligns with seasonal patterns and continued affordability pressures.
Average Sold Price: $555,167 (down 1.0%)
Median Sold Price: $425,501 (down 2.0%)
Average Price per Square Foot: $248 (down 2.4%)
Median Price per Square Foot: $211 (down 3.2%)
The softening in prices is subtle, but consistent, and may present opportunities for buyers who’ve been waiting on the sidelines.
New Listings Remain Below 2024 Levels
New listing activity continues to trail behind last year’s numbers, suggesting that many potential sellers are holding off.
While spring saw stronger momentum, the gap has widened again through late summer and into fall. This could keep inventory from ballooning even with fewer pendings.
Pending Sales Have Slowed Compared to 2024
Buyer demand has eased, with pending contracts down 4.3% year over year.
We typically see a fall slowdown, but this year's dip is slightly more pronounced. The trend likely reflects ongoing buyer sensitivity to interest rates and affordability.
Broader Economic Indicators
Mortgage Rates: After peaking at 6.75% in early August, rates have steadily declined to 6.36% by early October
This drop could bring some buyers back into the market, especially if the trend continues through Q4.
Federal Reserve Outlook:
Markets are currently pricing in a high probability of two or three rate cuts by March 2026.
While nothing is guaranteed, lower borrowing costs in the future could ease pressure on both buyers and sellers.
If You’re a Buyer
You’ve got more options right now, and fewer bidding wars to worry about. While prices haven’t dropped dramatically, they’ve softened, and motivated sellers are more open to negotiation. With mortgage rates dipping slightly, this might be a good window to re-engage if you’ve been waiting for better terms.
If You’re a Seller
The market is still moving, and total sales are up year over year. However, buyers are being more cautious, and it’s important to price realistically. Homes that show well and are priced correctly are still selling, but overpricing leads to stagnation and, increasingly, withdrawals. Strategic pricing and good marketing are more important than ever.
Always remember that real estate is hyperlocal and hypersituational. If we can help you with your home/property or if you'd like to strategize your situation, please reach out.