Austin Real Estate Weekly Market Update – February 26, 2026

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, February 26, 2026 at 09:55 am

The Austin housing market moves further into February 2026 with inventory continuing to expand across the broader metro, while the City of Austin shows slightly tighter supply but continued price compression. Active listings across the Austin-Area MLS are up 12.7% year over year, rising from 11,949 to 13,469. Months of Inventory has increased from 4.52 to 4.77 months, a 5.7% rise, reflecting slightly slower absorption compared to last year. Pricing remains modestly lower across both averages and medians. The average active list price is down 0.9% year over year, and the median active list price is down 2.3%. On the sales side, the average sold price has declined 0.6%, while the median sold price is down 2.3%, confirming continued but more moderate price softening across the region.

Scroll down to access the full 850+ page Austin Real Estate Market Report, featuring in-depth statistics for the top 30 cities and 75 ZIP codes across the region. 

Inventory Growth and Market Balance

Active residential listings across the Austin-Area MLS now total 13,469, up from 11,949 at the same point last year. That represents a 12.7 percent year over year increase in available supply. Inventory continues to expand as new listings enter the market at a pace that exceeds closed sales. Based on current transaction volume, Months of Inventory stands at 4.77, compared to 4.52 one year ago, a 5.7 percent increase. In practical terms, the market is carrying roughly 1.1 times more supply relative to demand than it was at this time last year. Absorption remains measured, and while week over week fluctuations occur, the broader trend shows a market that is more supplied than it was entering 2025.

Inside the City of Austin, inventory trends are slightly different but still important. Active listings have declined from 3,646 last year to 3,474 today, down 4.7 percent year over year. However, Months of Inventory has edged up from 4.93 to 4.99 months, a 1.2 percent increase. This tells us that while raw listing counts are slightly lower, the pace of sales relative to supply has not accelerated. The city market is not tightening in a way that would suggest strong upward price pressure. Instead, it remains balanced with buyers continuing to hold negotiating leverage.

Pricing Stability Across the MLS

Pricing across the Austin-Area MLS is showing modest year over year declines, but the rate of decline has slowed compared to prior periods. The average active list price has moved from $555,848 last year to $551,000, down 0.9 percent year over year. The median active list price has declined from $424,950 to $415,000, down 2.3 percent. These adjustments indicate that sellers are pricing more competitively, but we are no longer seeing the sharper corrections that defined earlier phases of the reset.

On the sales side, the average sold price has moved from $536,051 to $532,646, down 0.6 percent year over year. The median sold price has declined from $414,140 to $404,490, down 2.3 percent. When both averages and medians move lower together, it confirms broad based price compression rather than isolated weakness in one segment. Week over week pricing remains relatively stable, but year over year comparisons continue to show mild downward pressure.

Pricing Trends in the City of Austin

Within the City of Austin, pricing adjustments are more pronounced than the broader metro in several categories. The average active list price has declined from $782,814 to $724,616, down 7.4 percent year over year. The median active list price has edged lower from $560,000 to $554,999, a 0.9 percent decline. This suggests that higher price points inside the urban core are recalibrating more meaningfully, even as mid tier pricing shows relative stability.

Closed sale data reinforces this trend. The average sold price has fallen from $751,951 to $700,602, down 6.8 percent year over year. The median sold price has declined from $550,000 to $538,000, a 2.2 percent decrease. While these declines are not extreme, they are consistent and measurable. Compared to the broader Austin-Area MLS, the city continues to show somewhat larger adjustments in average pricing, particularly at the upper end.

Negotiation and Buyer Leverage

Negotiation remains a defining characteristic of the Austin housing market. So far this month, 70.43 percent of all closed sales across the Austin-Area MLS have sold below list price, slightly higher than last month’s 70.09 percent. About 18.41 percent have sold at list price, down from 20.36 percent last month. Meanwhile, 11.16 percent of properties have sold above list price, up from 9.55 percent last month but still below the 12.08 percent recorded in February 2025.

The average sold to list price ratio currently stands at 96.94 percent. That means, on average, sellers are accepting just over three percent below asking price. This confirms that concessions remain common across most price ranges and that buyers continue to negotiate successfully. While we are seeing occasional competitive situations, the data clearly shows that the majority of transactions close below original list price.

Regional and ZIP Code Variations

Market performance across Central Texas continues to vary by city and ZIP code. Among the 30 cities tracked, 20 have recorded month over month price increases, while 10 have declined. Year over year, 14 cities show price increases and 16 show declines. Short term stabilization is visible in several markets, but the broader year over year picture remains mixed.

When measured from peak pricing over the past 12 months, none of the 30 cities are currently above their prior peak values, and all 30 remain below peak. This confirms that while some short term gains are occurring, the broader reset from peak valuations is still intact.

At the ZIP code level, dispersion is even more pronounced. Of the 75 ZIP codes tracked, 40 have recorded month over month price increases and 35 have declined. Year over year, 34 ZIP codes show price increases and 41 show declines. However, when measured against peak levels from the past 12 months, only one ZIP code has surpassed its prior high, while 74 remain below peak pricing. This highlights how localized the Austin real estate market has become. Some neighborhoods are stabilizing, but most are still operating below recent highs.

Prices Relative to Peak Levels

Prices across the Austin-Area MLS remain materially below prior market highs. The average list price peaked in March 2023 at $708,929 and is currently $660,811, down approximately 6.8 percent from peak. The median list price peaked in May 2022 at $539,900 and is now $440,000, down roughly 18.5 percent.

The average sold price peaked in May 2022 at $664,515 and is currently $546,022, a decline of about 17.8 percent. The median sold price peaked at $538,000 and is now $411,679, down approximately 23.5 percent. On a price per square foot basis, the average has declined from $324 to $244, down about 24.7 percent, while the median has fallen from $280 to $204, down roughly 27.1 percent. These figures confirm that while the market has stabilized compared to its most volatile period, it remains significantly below its 2022 highs.

Within the City of Austin, peak to current declines are also meaningful. The average list price peaked at $959,497 and is currently $927,504, down about 3.3 percent. The median list price peaked at $658,589 and is now $599,000, down approximately 9.0 percent. The average sold price peaked at $847,583 and is currently $706,890, down about 16.6 percent. The median sold price peaked at $680,000 and is now $545,000, a decline of roughly 19.9 percent. Price per square foot metrics inside the city remain down more than 26 percent to 28 percent from peak levels, reinforcing that valuation adjustments in the urban core remain substantial.

Market Outlook

As February 2026 progresses, the Austin real estate market continues to operate in a slower and more balanced environment. Inventory across the Austin-Area MLS is higher than last year, Months of Inventory has expanded, and most homes are selling below list price. Average and median pricing measures are modestly lower year over year, with more pronounced adjustments inside the City of Austin at higher price points.

For buyers, this environment offers negotiating leverage and broader selection. For sellers, success depends on pricing in line with current absorption levels rather than anchoring to past peak values. The data shows a market that is stabilizing but not accelerating. It is not collapsing, yet it is not overheated. In today’s Austin housing market, clarity comes from understanding the numbers, and those numbers point to balance, discipline, and continued normalization.

Austin Real Estate Questions and Answers

Why are Austin home prices declining?

Austin home prices are adjusting because supply has expanded while demand has not accelerated at the same pace. Active listings across the Austin-Area MLS have increased from 11,949 to 13,469, a 12.7 percent year over year gain. At the same time, Months of Inventory has risen from 4.52 to 4.77 months, a 5.7 percent increase. When inventory grows faster than closed sales, pricing pressure naturally follows.

On the pricing side, the average sold price across the Austin-Area MLS has declined 0.6 percent year over year, and the median sold price is down 2.3 percent. Inside the City of Austin, adjustments are more noticeable. The average sold price is down 6.8 percent year over year, and the median sold price has declined 2.2 percent. This is not a crash. It is a continued recalibration toward what buyers can afford in a higher rate environment. Affordability constraints, combined with more available homes, create downward pressure on pricing.

Is Austin a buyer’s or seller’s market right now?

Austin is operating in a balanced to buyer-leaning market. Months of Inventory across the Austin-Area MLS stands at 4.77 months. Inside the City of Austin, it is 4.99 months. Markets typically shift toward seller dominance when supply drops below three months. We are well above that threshold.

Negotiation data reinforces this. So far this month, 70.43 percent of homes have sold below list price. Only 11.16 percent have sold above list price, which is still below February 2025 levels. The average sold to list price ratio is 96.94 percent, meaning sellers are accepting just over three percent below asking price on average. Buyers have leverage, particularly when homes are priced near prior peak expectations. Sellers who align pricing with current absorption levels can still transact successfully, but the data clearly shows negotiation is standard.

Are home prices in Austin still falling?

On a year over year basis, yes, though the pace of decline has moderated. Across the Austin-Area MLS, average sold prices are down 0.6 percent and median sold prices are down 2.3 percent compared to last year. Within the City of Austin, average sold prices are down 6.8 percent and median sold prices are down 2.2 percent year over year.

However, when looking month over month, 20 of the 30 cities tracked have recorded price increases. At the ZIP code level, 40 of 75 ZIP codes have seen month over month gains. This tells us the market is not in free fall. Instead, it is uneven. Some areas are stabilizing while others continue to adjust. When measured from peak levels over the past 12 months, all 30 cities remain below prior highs and 74 of 75 ZIP codes are still below peak pricing. The broader reset from peak valuations remains intact, but the rate of decline has slowed.

Why aren’t homes in Austin selling as quickly?

Homes are still selling, but buyers are more selective and price sensitive. With 13,469 active listings across the Austin-Area MLS and nearly five months of supply inside the city, buyers have options. Increased choice reduces urgency.

The fact that 70.43 percent of homes are selling under list price confirms that pricing strategy is critical. When a property is positioned correctly relative to current demand, it moves. When it is priced based on peak market expectations, it often sits and requires reductions. The market is rewarding precision and penalizing overpricing. Sellers who understand current absorption trends and neighborhood level data are performing better than those relying on outdated comparables.

What income is needed to live comfortably in Austin?

With the median sold price across the Austin-Area MLS at $404,490 and inside the City of Austin at $538,000, affordability remains central to the Austin housing conversation. A home around $400,000 with a standard down payment requires a meaningful household income to maintain housing costs at a sustainable percentage of gross income. Inside the city, where median pricing is higher, required income levels increase accordingly.

While exact income requirements vary based on mortgage rate, taxes, insurance, and debt obligations, the broader pattern is clear. Price adjustments are occurring because household incomes have not kept pace with the rapid appreciation seen during 2021 and 2022. The market is gradually resetting toward payment levels buyers can support.

Will Austin experience a housing crash in 2026?

Current data does not support a crash scenario. Inventory is higher than last year but remains under five months of supply, which is considered balanced rather than distressed. The average sold to list price ratio remains near 97 percent, indicating transactions are still occurring at negotiated but orderly levels.

From peak values, prices have already adjusted materially. Across the Austin-Area MLS, the median sold price remains approximately 23 percent below its May 2022 peak. In the City of Austin, the median sold price is roughly 20 percent below its peak. Much of the excess pricing from the pandemic surge has already been absorbed.

The Austin real estate market in 2026 is slower, more negotiated, and more disciplined than it was during the boom years. Inventory levels, negotiation data, and peak to current comparisons point toward continued normalization rather than systemic stress. Buyers have leverage, sellers must price accurately, and the data supports a balanced but not collapsing housing market.