Buyers gaining leverage in Austin housing market

Austin home buyers are gaining leverage heading into fall.

In August, the metro area had 131% more home sellers than buyers — one of the widest gaps among major U.S. metros, according to new data from online real estate marketplace Redfin. Nationally, there were 35.2% more sellers than buyers making this summer the strongest buyer’s market in records dating back to 2013.

That imbalance is giving would-be buyers more options and more room to negotiate on prices, repairs and other concessions from sellers. Agents report buyers keeping inspection contingencies and walking away when terms don’t pencil out.

“With so many options, it doesn’t take much for buyers to back out of deals,” said Redfin Premier agent John Tomlinson. “Last year, if issues like faulty AC or an outdated roof came up during an inspection, buyers would say, ‘OK, we’ll work with it.’ Now they’ll just walk away.” 

MORE: Austin bucks regional home sales slowdown in August as market shifts toward buyers

Prices have softened modestly across the metro while holding up better inside the city. Redfin estimates Austin-area prices in August were down about 3.7% from a year earlier and closer to 1% by late September. That’s according to the Redfin Home Price Index, which calculates seasonally adjusted price changes for single-family homes using the repeat-sales pricing method. It tracks the sale prices of homes sold within a specific period and compares those prices to the previous sale prices of the same homes.

Earlier this month, Unlock MLS reported the metro’s median price was $444,490 in August, up slightly from last year, while the city’s median was $590,000, also up modestly. In short: the broader area is a bit cooler, while city prices have been steadier.

“The tug-of-war in today’s housing market may actually be creating an opening for both buyers and sellers,” said Redfin Senior Economist Sheharyar Bokhari. “With more inventory available, intense bidding wars are in the rearview mirror, so buyers have room to negotiate. At the same time, sellers who price their homes realistically are still finding buyers and overall prices are holding steady.”

At the same time, borrowing costs have eased. Redfin’s late‑September update pegs the average 30‑year mortgage rate near 6.26%, its lowest level in about a year. Redfin agents say a drop below 6% could bring a critical mass of buyers back to the market. Even so, national pending sales were about 1% lower than a year earlier in late September, a sign of lingering caution.

Local figures point to a more balanced market. Across the Austin-Round Rock-San Marcos metro in August, pending sales rose 8.2% from a year earlier to 2,669, active listings climbed to 14,220, and months of inventory stood at 5.9, according to recent data from Unlock MLS. Inside the city, closed sales rose 2%, pending sales jumped 16.3% to 934, the median price was $590,000, and months of inventory reached 6.3. 

“We’re seeing signs of a steady and balanced market, and that opens the door for both buyers and sellers,” Brandy Wuensch, 2025 president of Unlock MLS and the Austin Board of Realtors, said earlier this month. “Success now hinges on pricing, timing and preparation as much as rate moves.”

According to Redfin, the weeks ahead will largely depend on whether mortgage rates continue to ease and how many new listings hit the market. If rates fall further, more buyers could return and narrow the gap between supply and demand. If activity on both sides holds steady, fall should look much like late summer: a more balanced market than the boom years, with a clear edge for prepared buyers — and solid results for sellers who price to the market.