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ustin's housing market has been experiencing a correction after years of unsustainable price growth, but it appears to be stabilizing. Despite prices dropping 6.6% year-over-year, they remain nearly 50% higher than in early 2020. The median home price is now $425,000, down from the pandemic-era peak.

    The Austin Board of Realtors President Kent Redding believes policy changes are needed to address affordability issues. Central Texas buyers and sellers are adapting to a more balanced market, with inventory levels stabilizing at around six months. New listings were down 0.1% in September, while active listings increased by 11.6%.

    Prices may continue to cool if demand lags, but the average days on the market was 79 in September, up from 69 a year ago. Sellers are adjusting to the change, with the average closing price at 92.8% of the list price, down slightly from last year.

    Housing economist Clare Knapp notes that the pandemic-era surge in home sales exhausted demand and put the market out of sync with the rest of the country. The mortgage rate lock-in effect is keeping some homeowners from selling, while others are waiting for prices to normalize.

    The Austin market saw a 20.2% jump in pending sales in September due to lower mortgage rates, but Knapp expects a slower, balanced market dynamic to continue unless rates fall sharply before next spring. Despite challenges, there's "a lot of hope for the future," according to Redding, who emphasizes the need for housing policy changes to address affordability issues.

    Austin-area real estate agents may need to adapt to the changing market, but they remain positive about the future. As one agent noted, "There's a recognition that this is perhaps not the market in Austin that they would have wanted."