Austin Housing Market Report December 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.

The Austin housing market closed out 2025 with more favorable conditions for affordability thanks to improved mortgage rates, moderated home price growth, and higher inventory levels. National reports indicate that affordability is improving as borrowing costs ease and incomes rise, while locally, Austin's housing supply continues to expand across multiple price tiers. As we move into early 2026, these factors are shaping how buyers and sellers evaluate timing, strategy, and available housing options.

Let's look at December’s numbers:

• Active Listings — December ended with 10,372  active listings, marking a 9% increase from last year and a 13% decline from November.
• Home Prices — The median home price reached $435K, declining 3% year-over-year and rising 1% month-over-month.
• Days on Market — Homes spent an average of 88 days on market, up 7 days compared to last year and up 9 days from November.
• Pending Sales— Pending sales totaled 1,908, down <1% from last year and down 15% from last month.
• Closed Sales — November saw 2,514 closed sales, a 2% increase from last year and 32% higher than November.
• Housing Inventory — Housing supply stood at 4.2 months, 0.4 months higher than a year ago and 2.1 months higher than November.
• Market Snapshot — Over 10,000 homes are on the market, selling for an average of 90% of the original list price; Realty Austin Compass listings achieved an average of 97% of their original list price and sold 14 days faster than the MLS average.

Prices and Affordability

The median home price settled at $435K in December, trending lower year over year while ticking up from last month. This mild monthly gain, combined with the lower mortgage rates, helped reduce payment pressure for buyers compared to the first half of the year. In broader national reporting, analysts observed that buyer affordability improved late in 2025 as rates eased and price gains slowed, as noted by RISMedia. These shifts do not eliminate Austin’s affordability challenges, but they provide more room for first-time buyers and move the market in a steadier direction. Local agents also noted more affordability-driven conversations in December as buyers recalibrated budgets with updated rate quotes and payment estimates. That shift is consistent with national reports showing affordability improving into the new year.

Inventory and Supply

December ended with 10,372 active listings and 4.2 months of supply, reflecting a seasonal pullback from the higher inventory levels seen earlier in 2025. Even with fewer active listings heading into the holidays, buyers still had real choices across price points and neighborhoods rather than a scarcity-driven market.

The seasonal decline in supply did not reduce buyer engagement. National housing data shows that U.S. housing inventory continued to grow year-over-year heading into 2026, even as the pace of growth slowed from the high levels seen in mid-2025. This suggests that supply is normalizing from the extreme lows of the past few years and moving toward a more balanced market environment.

Market Timelines and Seller Expectations

Homes are taking longer to sell, with 88 days on market, the longest since before COVID. However, slower timelines did not signal weak demand. December recorded 2,514 closed sales, up 32% month-over-month and slightly above last year, showing that buyers remained engaged through year end. What we are seeing is slower timelines paired with steady closings, which indicates that buyers are still in the market and writing offers when the fit is right.

Looking ahead, national economists expect buyer activity to remain present rather than fade. The National Association of Realtors 2026 outlook projects that existing-home sales could rise by roughly 14% nationwide next year as mortgage rates moderate and inventory circulates more widely, pointing to healthier transaction levels rather than a stalled market.

Outlook for Early 2026

Looking ahead to the first quarter of 2026, several national housing outlooks point to conditions that could support continued activity. Analysts writing about reasons to be optimistic regarding the 2026 housing market note that moderating mortgage rates, slowing price growth, and increasing inventory can make the market more manageable for both buyers and sellers.

Locally, employment trends continue to reinforce housing demand. Data from the Federal Reserve Bank of St. Louis (FRED) shows approximately 1.49 million employed persons in the Austin–Round Rock MSA as of November 2025. At the statewide level, the Texas Workforce Commission reported in January 2026 that Texas added 146,300 jobs year-over-year, pushing the civilian labor force to a record 15.9 million. Combined with steady hiring, continued in-migration, and a wider set of active listings, these conditions position early 2026 for a more confident and constructive pace for both buyers and sellers.

Planning Your Next Move

Early 2026 opens with clearer pricing signals, improved affordability, and better visibility for both sides of a transaction. Buyers gain from more inventory and realistic pricing, while sellers benefit from a market that is producing steady closings rather than abrupt swings. With economic conditions supporting housing demand and more predictable rate movement, the year is shaping up to offer opportunities for households with different timelines and goals. Connect with one of our trusted real estate advisors for help understanding how these trends apply in your part of the market.