FEBRUARY 2026
February Real Estate Market Report
City of Austin | Single Family
What Went Down In February
In February, the story of Austin real estate became even more defined: buyer commitment is outpacing the delivery of new inventory, yet the market remains weighted by a backlog of older listings undergoing necessary price corrections While active inventory still feels abundant, new under-contracts surged by 15 5% year-over-year, even as new listings saw a slight 1.0% decline. This imbalance is beginning to eat into the standing backlog, creating a segmented environment where fresh, well-priced homes move in days, while stagnant inventory becomes a lesson in patience.
Market Overview
Austin closed out February with 552 single-family home sales, representing a slight 07% decrease from last year While sales volume remained steady, pricing reflected a market finding its footing
Median Sale Price: Settled at $575,000, a 4 2% decrease compared to February 2025
Average Sale Price: dropped to $759,859, down 5 5% year-over-year
Price Per Square Foot: Averaged $321, a 77% decrease from the previous year
Months Supply of Inventory
There are currently 2,250 active listings. The Months of Supply now sits at 4.08, indicating a market that remains in "Seller’s Market" territory by technical definition (< 6 months) but continues to trend toward balance.
Price Range
Months of Supply Status
$200,000 – $299,999 - 2 4 Months - Tight Seller's Market
$300,000 – $399,999- 3 0 Months - Seller's Market
$700,000 – $799,999 - 3 2 Months - Seller’s Market
$800,000 – $899,999 - 39 Months - Moving Toward Balance
$900,000 – $1M - 3.1 Months - Seller's Market
$1.2M – $1.39M- 6.5 Months - Buyer's Market
$1 4M+ - 91 Months- Strong Buyer's Market
February Real Estate Market Report
City of
Austin | Single Family
Price Cuts & Compression
Price reductions on existing inventory have become the new standard for success in this environment In February, 44% of active listings carried a price drop
Currently, the average Price Drop: 9%
Currently, the median Time to First Price Drop: 80 days
Price Drop Outcomes: In February, listings that adjusted their price went under contract after a median of 18 days
The Takeaway: The gap between seller expectation and buyer reality is significant Sellers who bridge that gap upfront move their homes in weeks; those who wait often sit for months
Sales & Demand Trends
New Under Contracts: In February 2026, new contracts surged to 747, representing a significant 15 5% increase from the previous year This marks the second consecutive month of rising pending activity, showing that buyers are actively stepping off the sidelines
New Listings: While demand is rising, new supply saw a slight pullback There were 1,027 new listings delivered in February, a 1 0% decrease compared to last year
Average Days on Market (DOM): The average time for a listing to sell was 73 days While this is a slight increase from previous seasonal norms, homes that implement strategic price adjustments mid-listing are moving much faster, typically going under contract within 18 days of a price drop
February Real Estate Market Report
City
of Austin | Single Family
90-Day Trend & Month-to-Date
The Austin single-family market is currently transitioning through a definitive "Spring Thaw" After reaching a seasonal low in December, buyer activity has accelerated significantly, with new contract volume now consistently outpacing the delivery of new inventory
90-Day Demand Surge: Over the last three months, buyer commitment has seen a steep upward trajectory New under-contracts have climbed from a low of 497 in December to 617 in January , reaching 747 in February a 50% increase in demand over just 60 days Supply Dynamics: While demand is rising, new listings have not kept pace New supply peaked at 1,032 in October before dropping seasonally to 383 in December The recovery to 797 new listings in January and 1,027 in February shows a market where demand is increasingly "eating into" the inventory backlog Days on Market (DOM): Average DOM has remained relatively high, ending February at 72 days compared to 81 days in January and 71 days in December. This reflects the continued effort to move older, "stale" inventory through strategic pricing.
March Month-to-Date Snapshot: As of March 9, the early spring momentum is confirmed with 1,533 new pendings for the year-to-date period, an 8.0% increase over the same period in 2025.
February Real Estate Market Report
City of Austin | Single Family
Condos vs Single Family Homes - City of Austin - The Great Divide
The comparison between the Austin condo market and the single-family sector highlights a growing divide While single-family homes remain in a relatively balanced or "Seller's Market," the condo sector is in a deep "Buyer's Market" due to high inventory and slower sales velocity
The visual below illustrates these key differences across inventory supply, days on market, and year-over-year market trends
Inventory Surplus (Months of Supply): The condo market has more than double the supply of the singlefamily market (1094 months vs 4 08 months) With the industry standard for a "Buyer's Market" being over 6 months, condos are currently facing a significant surplus
Sales Velocity (Days on Market): Condos are taking considerably longer to move, with a median of 86 days on the market 34 days longer than the typical single-family home.
Demand & Volume Trends: New Contracts: While condo contracts rose by 8.9%, they were outperformed by the 15.5% surge in single-family contracts, indicating stronger buyer interest in houses.
Sales Volume: Condo sales saw a sharp 14.2% decline year-over-year, whereas single-family sales remained nearly flat (-0.7%).
New Listings: Despite a 9.3% drop in new condo listings, the overall inventory remains high (with 1,192 active listings as of March 9, 2026) because existing units are not selling fast enough to clear the backlog.
Real Estate Market Report
City of Austin | Single Family
January
February
March April
May
June
Compass RE is a licensed real estate broker All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors omissions changes in price condition sale or withdrawal without notice No statement is made as to the accuracy of any description or measurements (including square footage) This is not intended to solicit property already listed No financial or legal advice provided Equal Housing Opportunity Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions
July
August
September
October
November
The Average DOM shows the number of days a property was on the market before it sold. An upward trend in DOM indicates a move toward a Buyer’s market.
The Sold Price vs. Original List Price reveals the percentage of the Original List Price properties sold for.
City of Austin Real Estate Report
City of Austin | Single Family
City of Austin Real Estate Report
City of Austin | Single Family
