Published October 4, 2026 in Market Update

Austin prices are softer, but one part of the market is still holding up

By ricagreenwood@gmail.com

Real estate, Austin

Redfin reported Austin home prices fell 1% year over year in August. That number is real. But it does not describe every corner of Austin. The three months ending July 31, 2026 show a split worth knowing about.

The Real Estate Data Aggregator counted 82 homes sold in ZIP 78717 in the three months ending July 31, 2026. The median sale price came in at $657,500. That is up 10.6% from the same months a year before. While Redfin shows Austin broadly slipping 1%, this one ZIP moved the other way.

What the wider Austin picture looks like

Redfin also reported that 26.1% of Austin sellers cut their asking price in the four weeks ending September 20, 2026. That is more than the national share. Redfin put the U.S. rate at 21% for the same period. Realtor.com put the median list price in the Austin-Round Rock-San Marcos metro at $446,450 as of September 30, 2026. List price per square foot in that metro was down 8.4%, Realtor.com reported. Those are real softening signs across the broader city.

What the rental market is doing

Realtor.com reported the median asking rent for 0-2 bedroom listings in the Austin-Round Rock-San Marcos metro was $1,373 in August 2026. Landlords are competing hard for tenants. Realtor.com found that 70.7% of 0-2 bedroom rental listings in Austin offered concessions in August 2026. On top of that, Realtor.com reported 13.8% of rental communities run by institutional landlords were offering year-long concessions. That is a lot of give on the rental side, which can affect how some buyers weigh owning versus renting.

ZIP 78717 is reading differently

The Real Estate Data Aggregator tracked the three months ending July 31, 2026 in ZIP 78717. Prices rose 10.6% from the same stretch a year before. Sales were up 2.5%, to 82 closed homes. New listings grew 0.7%, to 138. Homes for sale rose 4.1%, to 127. That is more inventory, but demand kept up.

A few honest caveats for ZIP 78717

Homes took longer to sell. The Real Estate Data Aggregator put the median days on market at 49 days in the three months ending July 31, 2026. That is 6 days longer than a year before. Pending sales fell 11.1%, to 80. The share of homes going under contract within two weeks dropped 3.1 points, to 32.5%. Not every home sold fast, and fewer buyers moved quickly.

The sale-to-list ratio held at 97.7%, unchanged from a year before, the Real Estate Data Aggregator shows. That means sellers still got close to their asking price on average. Only 9.8% of homes sold above list, down 2.7 points from last year. Buyers are not rushing, but sellers are not giving ground either.

One more number worth watching nationally

Mortgage rates crossed 7% for the first time since January 2025, Realtor.com reported on September 30, 2026. The Federal Housing Finance Agency reported U.S. house prices rose 0.3% from the prior month in July, seasonally adjusted. Rates at that level slow buyers everywhere, including Austin.

One street can read very differently from the whole ZIP code. And one ZIP can read very differently from all of Austin. If your home is in this area, the city-wide number may not be the one that matters for your price plan.