Austin Housing Market Update | February’s Stats Show Demand Improves as Prices Adjust
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February real estate stats for the Austin Metro are in! Here's what you need to know.
Spring is just around the corner, and if February's data is any indication, the market is ready for it! The February data shows a market that is gradually gaining momentum while prices continue adjusting downward. Buyer activity improved notably with more pending contracts and closed sales on a year over year basis. At the same time, inventory continues to expand and pricing metrics remain modestly lower than last year. This combination is creating a healthier and more balanced market environment as we move toward the spring season.
Key Highlights
• Total sales increased to 2,102 units, a +7.5% increase year over year.
• Pending/under contract units increased +10.2%, indicating stronger demand heading into spring.
• New listings rose +5.1% while active listings increased +8.6%, continuing the trend of growing inventory.
• Average and median sold prices declined -4.4% and -4.7% respectively year over year.
• Average days on market increased to 111 and months of inventory increased to 5.3, indicating a more balanced market.
Average and Median Sold Price Trends
Pricing continues to normalize across the Austin metro. The average sold price declined to $537,359 while the median sold price declined to $407,731 on a year over year basis. This represents decreases of -4.4% and -4.7% respectively.
While these declines may sound significant at first glance, they are consistent with the gradual price adjustments we have seen over the past two years as the market recalibrates from the rapid pandemic era appreciation. Importantly, pricing has been relatively stable month to month, which suggests that the market may be approaching a new equilibrium as inventory rises and affordability improves.
Pending Sales Increase Suggests Stronger Spring Demand
Pending or under contract units increased +10.2% year over year, reaching 2,602 units in February. This is one of the most encouraging signals in the current data because pending units are a forward looking indicator of demand.
Historically, Austin follows a very predictable seasonal pattern where pending contracts rise in late winter and early spring before peaking in late spring or early summer. The early increase we are seeing in 2026 suggests buyers are beginning to reenter the market after a relatively quiet winter period.
If this trend continues through March and April, we could see stronger sales activity during the spring selling season compared to 2025.
And another interesting tidbit that I find pretty exciting…we’re already almost 7% higher in pending contracts than we were at this point last year!
New Listings Continue to Expand Inventory
New listings increased to 4,086 units in February, a +5.1% increase year over year. Active listings increased even more significantly to 14,676 homes, representing an +8.6% increase.
More inventory is one of the defining characteristics of Austin's current housing market. During the pandemic boom years, inventory fell to extremely low levels which created intense competition and rapid price appreciation.
Today's environment is very different. Buyers now have more options and more negotiating leverage, while sellers must price more carefully to attract demand. Months of inventory now sits at 5.3 months, which is approaching what economists consider a balanced market.
Total Volume Shows Market Stabilizing
Despite declining prices, total dollar volume of homes sold actually increased slightly in February to approximately $1.13B, a +2.7% increase year over year. This occurred because the number of homes sold increased enough to offset the modest price declines.
However, year to date volume is still down about -2.2% compared to the same period last year. This reflects the slower start to the year that has become typical in the current interest rate environment.
Overall, the combination of improving sales activity and slightly lower prices suggests the market is stabilizing rather than accelerating in either direction.
Broader Economic Indicators
Consumer sentiment improved modestly in recent readings from the University of Michigan survey, rising into the mid 50s range. This improvement indicates consumers are gradually becoming more comfortable with the current economic environment.
Mortgage rates have also improved slightly in recent months. After peaking around 6.36% in December, rates recently moved closer to roughly 6.1%. Even small movements in mortgage rates can significantly impact affordability and buyer activity.
The direction of mortgage rates throughout the spring will likely be one of the biggest factors influencing the housing market in 2026.
If you're a buyer
Inventory has increased significantly compared to the past several years and prices remain modestly lower on a year over year basis. That combination creates a favorable environment for buyers who have been waiting for more options and less competition.
Interest rates remain the primary challenge, but if rates stabilize or move slightly lower, demand could increase quickly. Buyers who purchase before a major rate decline often benefit from less competition and can refinance later if rates improve.
If you're a seller
The Austin market remains healthy, but it is much more price sensitive than it was several years ago. Buyers have options and they are paying close attention to value.
Homes that are priced correctly and presented well are still selling, while those that are overpriced tend to sit on the market longer. With average days on market increasing to 111 days, strategy and pricing are more important than ever.
The good news is that buyer demand appears to be increasing as we approach the spring market, which historically brings the highest level of activity each year.
Our goal as your trusted real estate advisors is to provide you with the information you need to help you reach your investment goals.
As always, real estate is hyperlocal and extremely situational, so please reach out to us to discuss your specific situation. We’d love to help you and strategize what’s in your best interest.
Cheers!
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