Steady Pricing and Rising Pending Sales Mark a Continued Balanced Austin Area Housing Market: Chuck Farr’s September 2025 Newsletter
Welcome to the glorious days of Fall, homeowners, tenants, prospective buyers, and real-estate investors!
Market Backchannel: As we enter late September, the Austin area real-estate market shows continued stability in pricing. The latest August Central Texas data from my local realty network shows active listings are up for most of this year (up 13% to 14% year-over-year depending on data source). Months of sales inventory remain around 5.3 to 5.9 (depending on source), indicating a balanced market. Average days on market are now at 68 to 78 days, depending on source.
Mortgage rates hover in the low 6-percent rate; if rates continue holding or drop, pent-up demand could stimulate more sales. Current 30-year fixed mortgage rates range from approximately 5.82% to 6.30% as of September 25, 2025. The Federal Reserve dropped interest rates on September 17, 2025, by 0.25 percentage points to a target range of 4% to 4.25%, marking their first rate cut of the year. In macro employment news, job postings are up for the last three months in the Austin area, increasing more than 20% in July, signaling a possible recovery.
In the News: According to the August 2025 Central Texas Housing Report released by Unlock MLS, “pending sales across the Austin-Round Rock-San Marcos MSA rose 8.2% in August, the fourth consecutive month of year-over-year growth, signaling steady buyer interest as the market transitions into fall. The median home price remained stable at $444,490, up slightly from last August. Active listings increased 13% year-over-year to 14,220 listings, though levels have started to trend downward month over month, keeping inventory under six months and the region in a more balanced market.
“Vaike O’Grady, research advisor at Unlock MLS, said the market continues to perform as expected for this point in the cycle, following familiar seasonal patterns.
“‘Pending sales are rising, prices are holding steady and inventory is trending in the right direction. The market is showing healthy movement as we head into fall, and August’s data reflects growing buyer confidence even as overall sales volumes ease.’
“Brandy Wuensch, 2025 Unlock MLS and ABoR president, pointed to insights shared during ABoR’s recent Central Texas Housing Summit, which brought together regional leaders to discuss the market’s future.
“‘We’re seeing signs of a steady and balanced market, and that opens the door for both buyers and sellers. The market has adapted to today’s interest rates, which means success now depends on how consumers position themselves, not just on rate movements.’
“Austin-Round Rock-San Marcos MSA [Entire Metro Area]
“August 2025 - For Sale
2,545 – Residential homes sold, 4.6% less than August 2024.
$444,490 – Median price for residential homes, 1.3% more than August 2024.
3,691 – New home listings on the market, 2.0% less than August 2024.
14,220 – Active home listings on the market, 13.0% more than August 2024.
2,669 – Pending sales, 8.2% more than August 2024.
5.9 – Months of inventory, 0.8 months more than August 2024.
$1,494,706,098 – Total dollar volume of homes sold, 2.2% less than August 2024.
92.3% – Average close to list price, compared to 93.3% in August 2024.
“August 2025 - For Lease
2,362 – Closed leases, 10.9% less than August 2024.
$2,362– Median price for rent, 5.0% more than August 2024.
3,113 – New lease listings on the market, 0.4% less than August 2024.
5,786 – Active lease listings on the market, 1.1% less than August 2024.
2,159 – Pending leases, 5.1% more than August 2024.
2.6 – Months of inventory, 0.1 months less than August 2024
$6,167,961 – Total dollar volume of leases, 7.7% less than August 2024.
96.1% – Average close to list price, compared to 99.7% in August 2024.”
For folks in the Austin MSA, if you had bought a house in 2018 at the median price of $305K, its value would have increased to $502K by the May 2022 peak (the post-pandemic years went crazy like the rest of us). Median price for the MSA is now still nearly $444K, so you would have still done well investing in Central Texas real estate. If you bought during (or after) the peak, the erosion of property values began levelling in 2023, and median prices have been stable for two years.
Check the latest Central Texas Housing Report for more details and data for the city of Austin (Travis) and surrounding counties. You will see a wide range across the area, so check details in the report about where you (want to) live.
Fall Home Maintenance Tips: Fall is here--and has its own home maintenance checklist in Central Texas. Here are a few items to consider during September:
· Outdoor Tasks:
o Plant and fertilize (okay maybe wait until October!). Fall is a great time to lay down some good fertilizer on the lawn, plant trees, bushes, and perennials; they will thank you for not planting them in the blaze of summer. Fall/winter planting allows the plants and their roots to dig in before next year.
o Rake leaves and shred to use as mulch or dispose of them based on local guidelines.
o Clean gutters and downspouts after the raking season.
· Indoor Tasks:
o Test smoke and carbon monoxide detectors when you set clocks back in the Fall (early November this year).
o Have furnace professionally inspected. If you are on a semi-annual HVAC maintenance plan, have your system serviced in the next two or three months.
When considering your real-estate needs and situation in the context of macro-level data, remember that your potential sale or purchase will always be hyperlocal. Let us know if we can help. Issues of this and previous newsletters are located on the Blog tab of my website at www.chuckfarr.com. Please DM or email me if you want your email added to my newsletter list.
