Austin, TX Housing Market Report

The Austin-Round Rock-Georgetown housing market continues to undergo a significant correction as of December 2025, firmly establishing itself as a buyer-friendly environment. With the median home value sitting at $489,253, the market has seen a notable 6.39% decline over the past year. This shift is further evidenced by an increase in active inventory, which has grown nearly 6% year-over-year to 10,847 units. Buyers now have more leverage than they have had in years, supported by a sale-to-list ratio of 0.97, indicating that most properties are selling for less than their initial asking price.

Price trends over the last six months show a consistent, albeit slowing, downward trajectory. Since July 2025, values have dipped from approximately $495,410 to the current December level. This cooling period follows the unprecedented surge seen in the early 2020s, as the market recalibrates to higher interest rates and a more balanced supply-demand dynamic. The rental market is mirroring this trend, with median rents falling 3.09% annually to $1,538, suggesting that the broader housing shortage in Central Texas is easing as new inventory reaches the market.

For prospective sellers, the current landscape requires patience and realistic pricing strategies. Homes are now spending an average of 114 days on the market, which is two weeks longer than the previous year. Sellers can no longer expect immediate bidding wars and must be prepared for negotiations. Conversely, for buyers, the increase in days on market and the steady decline in prices present a strategic window to enter the market with less competition. While the rapid depreciation seen earlier in the year may be tapering off, the current data suggests that the market is prioritizing affordability and stability over rapid growth.

Looking ahead, the Austin metro area remains a fundamentally strong economic hub, but the short-term outlook suggests continued price stabilization. Buyers should focus on long-term equity rather than quick gains, while sellers should ensure their properties are in peak condition to stand out among the growing inventory. As the market moves into 2026, the balance of power remains with those holding the capital, as the era of the frantic Austin housing boom has transitioned into a more measured and accessible marketplace.