Real Estate Blog

Overall, 2025 was a tough year for both Austin home sellers and home buyers. Mortgage rates were over 6% for the whole year, and home insurance costs rose as well, becoming more critical on home repairs. 

Prices have come down somewhat, but still not to the liking of most buyers who can lease for around 30% less than a mortgage would be. Now that 2025 is over, here is the good and bad for the upcoming year!  ​

Let's start with the bad.  Properties are staying on the market longer, recently the average days on the market for Austin is at 104 days. A drastic change from the zero days on market from 2022!  Buyers are still scarce. 

The major factors are higher mortgage rates, fewer new employment opportunities, slower resident growth, and the overall cost of living. Also, long-term home investors are nonexistent, which leaves only owner-occupant purchasers. I know, doom and gloom...but here's the good news!  ​

It's 2026, and mortgage rates are hovering in the low 6% range, with some lenders/banks already offering fixed rates in the 5s. If rates continue to lower into the low 5s, we could see an uptick in buyers. This drop in rates will be a huge boost for Austin home buyers who have been anxiously sitting on the sidelines. 

Also, a new fed chair will be installed in May of this year. All signs are pointing to that new Fed chair being aggressive with interest rate drops. We have already seen an uptick in executed contracts and active buyers shopping this January.​

This market offers a great opportunity for buyers to purchase real estate well off the market highs of 2023. Although a higher cost of living has hindered its growth, Austin continues to be a highly desirable living destination. 

We are off to a good start in 2026 for a rebound. We are hopeful this trend continues!

Ready to Talk About Your Next Move?

If you’re wondering how these market shifts could affect your buying or selling plans, our team is here to help. Contact the team at Pauly Presley Realty to discuss your options and get clear, local insight tailored to your goals in the Austin market.