How’s the Austin Real Estate Market? It Depends Who’s Asking.

“How’s the market?” is probably the question I get asked more than any other when someone finds out I’m a Realtor. The problem is there really isn’t one answer. The real estate market is constantly moving between favoring sellers, being relatively balanced, and favoring buyers. One of the primary ways we measure that is months of inventory. Basically, if no additional homes came on the market, how long would it take buyers to purchase everything currently available based on the existing pace of sales? Lower inventory generally favors sellers. As inventory grows, negotiating power begins shifting toward buyers.

But here’s the important part. The market is almost always good for somebody. If you're a buyer in Austin right now, there are deals to be had. Higher inventory and longer days on market mean sellers are generally more willing to negotiate on price, repairs, closing costs, or other terms than they were a few years ago. The challenge is that more inventory doesn't necessarily mean more great inventory. I've talked about buyer fatigue before, and we're seeing it now. Buyers may have 30 homes to choose from, but only a handful might actually check most of their boxes.

For sellers, this market can feel like a slugfest. If your home has a compromise like a busy street, dated interior, unusual floor plan, poor condition, or you're simply priced too high, you could be sitting on the market for months. At the same time, I'll watch a beautifully maintained and properly priced home in a desirable Southwest Austin neighborhood hit the market and receive multiple offers within days. How can both things be true? Because we don't really have one Austin housing market anymore. We have dozens of smaller markets behaving differently based on neighborhood, schools, price point, condition, and the individual property.

So when someone asks me, “How’s the market?” my answer is usually another question. Who’s asking? A first time buyer, someone selling a dated house, a move up buyer who has to sell before purchasing, and the owner of a fully renovated home in a highly desirable neighborhood are all experiencing completely different markets at exactly the same time. The market isn't inherently good or bad. Understanding which part of the market you're in is what actually matters.