Austin Housing Market: 2025 Year in Review

After the frantic pace of the last few years, the market spent 2025 recalibrating. We saw prices soften, inventory surge, and power shift decisively back into the hands of buyers.

As the graphic above highlights, the market changed significantly this year:

• Prices came down to earth: We saw a median home value drop of roughly 6%, erasing the "froth" from the pandemic boom.

• Inventory is abundant: Listings are up nearly 20%, giving buyers more choice than we’ve seen in years.

• Patience is required: Homes typically take 70-80 days to sell.
  
  

2026 Forecast: Stabilization & Opportunity

So, what’s next? Don't expect a sudden boom. Instead, 2026 will likely be a year of gradual healing.

• Finding the Floor: We expect prices to remain soft through the first half of the year, likely finding a stable "bottom" in Q3 or Q4.

• Interest Rates: Mortgage rates are forecast to stabilize in the high 5% to low 6% range, which should unlock some pent-up demand.

• The "Boring" Market: We are moving toward a normalized, predictable market—which is actually a very good thing for long-term health.

What This Means For You

🏡 If you are Buying: You hold the cards. The days of bidding wars are gone. You can now negotiate for repairs, closing costs, and rate buydowns. While timing the "perfect bottom" is impossible, buying now secures a lower asset price with the option to refinance later.

🏷️ If you are Selling: Patience is your new currency. Pricing is critical; you must price slightly below the competition to stand out. Be prepared to offer concessions to close the deal.

📈 If you are Investing: Focus on the long game. Rent growth is currently flat due to supply, so look for appreciation opportunities in growing suburbs such as Kyle, Buda, and Leander.

Real estate is hyper-local, and what is happening in Austin overall might look different than what is happening in your specific neighborhood.

Are you curious how your home's value has shifted in the 2025 correction? Click the Contact Us link at the to of the page and request a custom home value report.