Austin Housing Market Update: City of Austin Inventory Drops 16%

by: Dan Price, Broker at Team Price Real Estate
Published on: Thursday, May 28 2026 at 09:08 am

The single biggest story in the Austin housing market this week sits inside the city limits. The City of Austin is now carrying 4,905 active listings, down from 5,840 a year ago. That is a 16 percent drop in available homes, and it is happening while the broader region holds far steadier. When supply tightens this fast in one geography and not the other, it tells you the market is splitting into two stories, and where you are buying or selling now matters more than it has in months.

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How much inventory is on the Austin housing market right now?

The Austin-Area MLS currently holds 16,865 active listings, down 2.1 percent from 17,218 a year ago. That is a modest decline across the wider region. Based on the current pace of sales, the Austin-Area MLS sits at 5.87 months of inventory, compared with 6.13 months a year ago, a 4.3 percent decrease. A balanced market generally runs near six months, so the broader region remains close to equilibrium with a slight tilt toward sellers.

The City of Austin is a sharper picture. Active listings fell to 4,905 from 5,840, a 16 percent drop year over year. Months of inventory inside the city dropped to 4.86 from 6.06, a 19.7 percent decline. That moves the City of Austin firmly into seller-leaning territory, well below the six-month balance line. Buyers shopping inside the city are now competing for a meaningfully smaller pool of homes than they were a year ago.

What are home prices doing in the Greater Austin MLS?

Prices across the Austin-Area MLS are higher than a year ago on every measure. The average sold price reached $593,285, up 4.4 percent year over year. The median sold price came in at $440,000, up 1.7 percent. On the list side, the average active list price is $609,351, up 3.8 percent, and the median active list price is $449,990, up 1.1 percent.

The gap between average and median tells you something useful. The average is climbing faster than the median, which means higher-priced homes are carrying more weight in the sold mix this period. For most buyers and sellers working in the middle of the market, the median is the number to watch, and a 1.7 percent annual gain reflects a market that is appreciating slowly and steadily rather than spiking.

What are home prices doing in the City of Austin?

City of Austin prices are also up year over year, though more gently than the suburbs in percentage terms. The median sold price rose to $610,000 from $600,000, a 1.7 percent increase. The average sold price reached $794,195, up 1.1 percent. List prices were nearly flat on the average at $816,871, down a fraction of a percent, while the median active list price rose to $624,950, up 1.6 percent.

What stands out here is the combination. City prices are holding firm and ticking up while inventory contracts sharply. That pairing, steady prices on falling supply, is often the early setup for firmer pricing ahead, because fewer choices give sellers more footing in negotiations.

How much negotiating room do Austin buyers have right now?

The average sold-price-to-list-price ratio across the market is 97.8 percent, meaning the typical home is closing about 2.2 percent below its asking price. So far this month, 64.06 percent of all sold properties closed under list price, up from 62.37 percent last month. Another 21.08 percent sold at list price, and 14.86 percent sold over list price, down slightly from 15.12 percent last month and close to the 14.93 percent recorded in May 2025.

The takeaway for buyers is that room to negotiate still exists across most of the region, with roughly two out of three homes selling below asking. The takeaway for sellers is that pricing correctly from day one matters, because the share of homes selling above list has held steady and low, and overreaching on price still costs you. Inside the City of Austin, where inventory is thin, that negotiating room is likely narrower than these regional averages suggest.

Which Austin-area cities and ZIP codes are gaining or losing value?

Across the 30 cities tracked in Central Texas, 18 posted month-over-month price increases and 12 declined, a 60 to 40 split favoring gains in the short term. Year over year, the picture is more mixed, with 14 cities up and 15 down. None of the 30 cities is sitting at its 12-month price peak right now, which confirms that the recent strength is a near-term move rather than a return to top values.

Among the 75 ZIP codes tracked, 38 rose month over month and 37 declined, an almost even split. Year over year, 31 ZIP codes gained and 44 lost ground. Only one of the 75 ZIP codes is currently at its 12-month peak. The pattern across both cities and ZIP codes is the same: short-term momentum is improving, but most local markets are still priced below where they were a year ago and well below their highs.

How far is the Austin market from its peak prices?

The Austin-Area MLS median sold price of $445,000 is down 17.3 percent from its May 2022 peak of $538,000. The average sold price of $594,992 sits 10.5 percent below its peak. On a per-square-foot basis, the median sold figure of $215 is down 23.2 percent from its April 2022 peak of $280, and the average is down 19.4 percent. These are the lagging numbers, and they show how much room separates today's prices from the 2022 highs.

In the City of Austin, the median sold price of $608,000 is 10.6 percent below its May 2022 peak of $680,000. The average sold price of $787,895 is 7 percent off its peak. The median sold price per square foot of $310 is down 21.1 percent from its April 2022 peak of $393, and the average per square foot of $357 is 19.2 percent below peak. The City of Austin remains meaningfully below its highs even as current inventory tightens.

What is the outlook for the Austin housing market?

The forward signals are pointing toward firmer conditions, especially inside the City of Austin. Inventory is the leading indicator here, and a 16 percent annual drop in city listings paired with months of inventory falling below five is the kind of supply contraction that tends to support prices before it shows up in closed-sale figures. Closed prices are the lagging data, and they are still well below peak, which is exactly why the supply story matters: it often moves first.

For the broader Austin-Area MLS, the read is steadier. Inventory is easing modestly, prices are appreciating slowly, and negotiation room remains. This is a market finding its footing rather than running. Both buyers and sellers benefit from watching the gap between the two geographies, because the City of Austin and the surrounding region are not moving in lockstep right now.

Common Questions About the Austin Housing Market

Is it a buyer's or seller's market in Austin right now?

It depends on where you are looking. The broader Austin-Area MLS sits near balance at 5.87 months of inventory, giving both sides leverage. The City of Austin, at 4.86 months, has shifted toward sellers as listings dropped 16 percent year over year.

Are home prices going up or down in Austin in 2026?

Prices are up modestly year over year. The Austin-Area MLS median sold price rose 1.7 percent to $440,000, and the City of Austin median sold price rose 1.7 percent to $610,000. Gains are slow and steady rather than sharp.

How much below asking price are homes selling for in Austin?

The typical home is closing at 97.8 percent of its list price, about 2.2 percent under asking. So far this month, roughly 64 percent of sold homes closed below list price, while about 15 percent sold over list.

Why is City of Austin inventory dropping so fast?

City of Austin active listings fell from 5,840 to 4,905 over the past year, a 16 percent decline. With months of inventory down to 4.86, the city is absorbing its available homes faster than the surrounding region, which is tightening supply.

How far are Austin home prices from their peak?

The Austin-Area MLS median sold price is down 17.3 percent from its May 2022 peak. The City of Austin median sold price is down 10.6 percent from its peak. Most local markets remain below their 2022 highs even as recent momentum improves.

Should I buy a home in Austin now or wait?

That depends on your geography and timeline. Inside the City of Austin, tightening inventory may reduce future negotiating room, while the broader region still offers room to negotiate on most homes. The data favors acting where supply is thin and being patient where it is steady.

This Austin housing market update was prepared by Dan Price, Broker at Team Price Real Estate. For the full weekly statistical report and archived updates, visit teamprice.com.