For almost two years, the Austin housing market has been a study in restraint. While other cities have swung between frenzy and fatigue, prices here have remained remarkably steady. They have neither surged nor collapsed, instead settling into a rare equilibrium that offers something valuable to both buyers and sellers: the ability to make decisions without the shadow of volatility.

In July, the median sale price landed at $425,000, down just 2.3% from a year ago. The average sale price edged slightly higher to $565,704. The average price per square foot eased to $254, a modest retreat from last summer. Months of supply rose to 5.3, the highest in two years, while average days on market stretched to 72.5 days, up from 64.7 last year. This is a portrait of balance, with subtle shifts beneath the surface.

The Pulse Beneath the Calm

Markets are more than their price tags. They are a living rhythm of supply and demand, of human behavior and economic influence. In July, that rhythm changed just enough to merit attention.

Closed sales reached 2,879, a 9.6% year-over-year decline. Yet pending contracts—one of the clearest forward-looking indicators we track—rose 9%. Demand is quietly rebuilding even as the calendar moves toward the slower months of late summer and the holidays.

Buyers are taking their time. Homes are lingering a little longer before going under contract. The pace has eased, creating space for conversations, second showings, and thoughtful negotiation.

Supply Steps Forward

While demand is improving, supply is growing even faster. New listings climbed 13% compared to last year, giving buyers more choice and sellers more competition. Months of inventory moved from 4.5 to 5.3. This is not an oversupply, but it does tilt leverage slightly toward buyers, especially in slower sub-markets.

For sellers, strategy matters more than ever. The right pricing, the right presentation, and the right positioning can mean the difference between lingering and securing a contract.

Beyond the Numbers

Outside the MLS, the broader economic picture is mixed. Consumer sentiment, which faltered in the spring, rebounded in June and July though it has not returned to early-year highs. A softer jobs report has market watchers expecting three Federal Reserve rate cuts in 2025, with the first likely in September. Mortgage rates responded quickly, dipping a touch over 6.5%, a shift that could draw more buyers into the market this fall.

Reading the Room

• For buyers More inventory, stable pricing, and slightly lower rates create opportunity. Negotiation is back on the table and bidding wars are increasingly rare in many areas.
• For sellers Timing and precision are essential. Overpricing in a softer season can cost both momentum and money. If you can wait until spring 2026, seasonal patterns may work in your favor. If selling now, meet the market where it is, not where it was.

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