Austin Real Estate Weekly Market Update – February 19, 2026

by: Dan Price, Broker at Team Price Real Estate
Austin's leading data analysis brokerage, where data drives exceptional service
Published on: Thursday, February 19, 2026 at 12:41 pm

The Austin housing market moves further into February 2026 with inventory continuing to expand across the broader metro, while the City of Austin shows slightly tighter supply but continued price compression. Active listings across the Austin-Area MLS are up 12.3% year over year, rising from 11,814 to 13,272. Months of Inventory has increased from 4.29 to 4.71 months, a 9.9% rise, reflecting slower absorption compared to last year. Pricing remains lower across both averages and medians. The average active list price is down 3.6% year over year, and the median active list price is down 2.1%. On the sales side, the average sold price has declined 3.4%, while the median sold price is down 2.4%, confirming broad-based price softening across the region.

Scroll down to access the full 850+ page Austin Real Estate Market Report, featuring in-depth statistics for the top 30 cities and 75 ZIP codes across the region. 

Inventory Growth and Market Balance

Active residential listings across the Austin-Area MLS now total 13,272, up from 11,814 at the same point last year. That represents a 12.3 percent year over year increase in available supply. Inventory continues to build as new listings enter the market at a pace that exceeds closed sales. Based on current transaction volume, Months of Inventory stands at 4.71, compared to 4.29 one year ago, a 9.9 percent increase. In practical terms, the market is carrying about 1.1 times more supply relative to demand than it was at this time last year. Absorption remains slower than 2025, and inventory has not meaningfully tightened week over week.

Inside the City of Austin, inventory trends differ from the broader metro. Active listings have declined from 3,646 last year to 3,415 today, down 6.3 percent year over year. Months of Inventory has eased slightly from 4.93 to 4.88, a modest 1.1 percent decrease. While supply is somewhat lower than last year inside the city limits, the change is small. The market is not tightening at a pace that would suggest upward pressure on prices. Instead, balance remains steady, with buyers still holding meaningful negotiating leverage.

Pricing Stability Across the MLS

Pricing across the Austin-Area MLS continues to trend lower across both average and median measures. The average active list price has declined from $559,766 last year to $539,818, down 3.6 percent year over year. The median active list price has moved from $419,990 to $411,290, down 2.1 percent. These adjustments indicate that sellers across multiple price points are pricing more conservatively compared to early 2025.

On the sales side, the average sold price has declined from $538,471 to $520,302, down 3.4 percent year over year. The median sold price has moved from $409,914 to $400,000, down 2.4 percent. When both averages and medians move lower together, it confirms that price compression is broad based rather than limited to a specific segment. Week over week, pricing remains relatively stable, but year over year comparisons continue to show measurable softening.

Pricing Trends in the City of Austin

Within the City of Austin, pricing adjustments are more pronounced than the broader metro. The average active list price has declined from $789,531 to $708,475, down 10.3 percent year over year. The median active list price has decreased from $565,000 to $535,000, a 5.3 percent decline. Higher price points inside the urban core are recalibrating more aggressively relative to buyer demand.

Closed sale data shows similar movement. The average sold price has fallen from $756,166 to $679,334, down 10.2 percent year over year. The median sold price has declined from $554,430 to $515,000, a 7.1 percent decrease. These declines exceed those seen across the Austin-Area MLS, indicating that price adjustments inside the city have been more substantial over the past year.

Negotiation and Buyer Leverage

Negotiation remains a defining feature of the Austin housing market. So far this month, 71.58 percent of all closed sales across the Austin-Area MLS have sold below list price, slightly higher than last month’s 70.05 percent. About 18.24 percent have sold at list price, down from 20.41 percent last month. Only 10.18 percent of properties have sold above list price, compared to 9.55 percent last month and 12.08 percent in February 2025.

The average sold to list price ratio stands at 96.77 percent. That means, on average, sellers are accepting roughly three percent below asking price. This confirms that concessions remain common across most segments and that buyers continue to negotiate successfully in today’s environment.

Regional and ZIP Code Variations

Market performance across Central Texas continues to vary at the city and ZIP code level. Among the 30 cities tracked, 18 have recorded month over month price increases, while 11 have declined. Year over year, 14 cities show price increases and 16 show declines. However, when measured from peak levels over the past 12 months, all 30 cities remain below their prior highs. Short term movement exists, but the broader reset from peak values remains intact.

At the ZIP code level, dispersion remains wide. Of the 75 ZIP codes tracked, 39 have recorded month over month price increases and 36 have declined. Year over year, 37 ZIP codes show price increases and 38 show declines. Only one ZIP code is currently above its peak price from the past 12 months, while 74 remain below peak levels. This confirms that while some neighborhoods are stabilizing or improving on a short term basis, the vast majority are still operating below recent highs.

Prices Relative to Peak Levels

Prices across the Austin-Area MLS remain materially below prior market highs. The average list price peaked in March 2023 at $708,929 and is currently around $644,160, down about 9 percent from peak. The median list price peaked in May 2022 at $539,900 and is currently near $436,190, down roughly 19 percent.

The average sold price peaked in May 2022 at $664,515 and is now approximately $541,852, a decline of about 18 percent. The median sold price peaked at $538,000 and is now near $420,000, down roughly 22 percent. On a price per square foot basis, both average and median values remain approximately 25 percent to 26 percent below their 2022 highs.

Within the City of Austin, peak to current declines are also significant. The average sold price peaked at $847,583 in May 2022 and is currently near $674,200, down about 20 percent. The median sold price peaked at $680,000 and is now near $535,000, down roughly 21 percent. Price per square foot metrics inside the city remain roughly 28 percent to 29 percent below peak levels, confirming that valuation adjustments in the urban core remain substantial.

Market Outlook

As February 2026 progresses, the Austin housing market continues to operate in a slower and more measured environment. Inventory across the Austin-Area MLS is higher than last year, Months of Inventory has expanded, and most homes are selling below list price. Both average and median pricing measures are lower year over year, particularly within the City of Austin.

For buyers, this environment offers negotiating power and broader selection. For sellers, accurate pricing and realistic expectations are critical. The data shows a market that is stable but still adjusting. The pace is not collapsing, but it is not accelerating. In today’s Austin real estate market, success depends on aligning price with current absorption levels rather than relying on past peak values.

Austin Real Estate Questions and Answers

Why are Austin home prices declining?

Austin home prices are adjusting because supply has expanded while absorption has slowed compared to last year. Active listings across the Austin-Area MLS are up 12.3 percent year over year, and Months of Inventory has increased from 4.29 to 4.71. When inventory rises faster than demand, pricing pressure naturally follows. At the same time, affordability remains stretched compared to pre-2021 levels. Even modest changes in mortgage rates have a meaningful impact on monthly payments, which limits how much buyers can pay. The result is broad-based price softening. The average sold price across the MLS is down 3.4 percent year over year, and the median sold price is down 2.4 percent. Inside the City of Austin, declines are more pronounced, with median sold prices down 7.1 percent year over year. This is not a collapse. It is a continued recalibration toward what today’s buyers can afford.

Is Austin a buyer’s or seller’s market right now?

Austin is operating in a balanced to buyer-leaning market. Months of Inventory across the Austin-Area MLS sits at 4.71 months, higher than last year. In addition, 71.58 percent of homes are selling below list price, and the average sold-to-list price ratio is 96.77 percent. That means most sellers are negotiating and accepting offers below their original asking price. Sellers can still succeed, but only when pricing aligns with current demand. Overpriced homes are sitting longer and often require price reductions. Buyers have options, and the data confirms they are using that leverage.

Are home prices in Austin still falling?

On a year-over-year basis, yes. Both average and median prices remain lower than they were one year ago. Across the Austin-Area MLS, average sold prices are down 3.4 percent and median sold prices are down 2.4 percent. Within the City of Austin, average sold prices are down 10.2 percent and median sold prices are down 7.1 percent. However, most of the major correction occurred after the 2022 peak. Today’s movement is more gradual. In fact, when looking month over month, 18 of the 30 cities tracked have seen price increases, and 39 of 75 ZIP codes have recorded month-over-month gains. That tells us the market is not in free fall. It is adjusting unevenly, with some areas stabilizing while others continue to soften.

Why aren’t homes in Austin selling as quickly?

Homes are still selling, but buyers are more selective and more price sensitive. Inventory is higher than last year, giving buyers more choices. With 4.71 months of supply in the broader MLS and nearly 4.9 months inside the city, buyers do not feel urgency in most price segments. The data also shows that 71.58 percent of homes are selling under list price. When a property is priced aggressively relative to current demand, it moves. When it is priced near peak expectations, it tends to sit and eventually adjust. The market is rewarding precision and penalizing optimism.

What income is needed to live comfortably in Austin?

With the median sold price across the Austin-Area MLS at $400,000 and inside the City of Austin at $515,000, affordability remains a central issue. A home around $400,000 with 20 percent down still requires a meaningful household income to keep monthly housing costs at a sustainable percentage of gross income. While exact figures depend on rate, taxes, and insurance, the reality is that buyers must carefully align purchase price with monthly payment. The broader trend shows that price adjustments are occurring in response to this affordability ceiling. As income growth has not kept pace with the rapid appreciation seen in 2021 and 2022, the market has had to reset gradually.

Will Austin experience a housing crash in 2026?

Current data does not support a crash scenario. Inventory is higher than last year but remains in the mid-4 month range, not at distressed levels. Foreclosure activity is not spiking, and most homeowners still hold substantial equity due to gains from 2020 through 2022. Prices are lower than peak, with the median sold price across the MLS still about 22 percent below the 2022 high and the City of Austin roughly 21 percent below its peak. Those adjustments have already absorbed much of the prior excess. What the data suggests is continued normalization. Some neighborhoods will stabilize faster than others, but there is no evidence of forced selling or systemic credit stress. The market is slower, more negotiated, and more balanced, but not collapsing.