October Market Report
Market Overview
Austin closed out October with 677 single-family home sales, reflecting a 5.8% increase from the previous year. The Median Sales Price for the month settled at $584,900, marking a negligible 0.4% year-over-year increase. Meanwhile, the Average Sales Price saw a substantial 4.3% increase year-over-year, climbing to $838,942. Price per square foot averaged $350, nearly matching the year-ago figure. The average days on market were at 68 days, down from. the previous year, and the median days were at 48, down 5. This segmented market—where a competitive sale price is paramount—requires sellers to price with precision and market with intent to capture buyer attention.
Months Supply Of Inventory
New listings in October totaled 1,032, showing a 17.5% increase from the previous year. Meanwhile, New Under Contracts (demand) reached 722, an increase of 13.7% from last October. The increasing flow of new inventory relative to contracted properties reinforces a market where buyers have abundant choice. The Months Supply of Inventory (MSI) for single-family homes in the City of Austin is 4.36 months as of November 10, 2025. This is firmly below the six-month threshold that defines a perfectly balanced market, technically keeping the area in a Seller's Market territory. However, when viewed in the context of increasing inventory and escalating days on market, the leverage is clearly in the buyer's favor.
Price Cuts & Compression
Price reductions are now a fundamental part of the negotiation cycle. In the month of October, listings that reduced their price went under contract after a median of 24 days. This underscores a key market dynamic: homes must meet the market to move. - The median time a listing remains on the market before a price cut occurs is 20 days. - The average price reduction across all active listings is 9%.
List-to-Close & Buyer Leverage
Homes closed at an average of 91.99% of their original list price in October. This metric, coupled with widespread price cuts, signals a continued shift in negotiating power. Buyer leverage is significant—they can negotiate on price, repairs, and closing costs, especially for homes that are "sitting" on the market. For sellers, overpricing is the quickest way to garner lower offers; presentation, flexibility, and sharp pricing are now essential for a successful outcome