Austin Housing Market Update: September 2026 Prices & Trends
Updated: Oct 29
Austin's housing market is giving us mixed signals, and that's exactly why the local numbers matter.
September brought slightly higher prices across Greater Austin, fewer sales, and some interesting opportunities for buyers willing to look beyond the headlines.
But what's happening in Dripping Springs looks very different from Westlake or Bee Cave. And if you're wondering whether now is a good time to buy, sell, or make a move to the Texas Hill Country, the answer depends on where you're looking.
Here's what caught my attention this month and what it could mean for your next move.
What is happening in the Austin housing market?
Across the Austin-Round Rock-San Marcos metro area, the median sales price reached $421,000 in September, up 1.4% from last year.
But sales activity tells another story:
2,223 closed sales, down 14.8% year over year
5.4 months of inventory
73 average days on market, three days faster than last year
Homes sold for an average of 92.7% of their list price, compared with 91.4% last September
Here's what stands out to me: Prices are holding relatively steady, but fewer homes are selling.
Buyers have options, and sellers still need to be realistic about pricing and presentation. The homes that are priced well and show beautifully are in a much better position to attract serious buyers.
Are Austin home prices going up?
In September, yes. Inside the City of Austin, the median sales price climbed 4.2% to $570,958.
Homes also sold faster, averaging 65 days on market, eight days fewer than last September. Sellers received an average of 92.5% of their list price, compared with 90.8% a year ago.
But zoom out to the full third quarter, and Austin's median price was actually down 1.2% year over year.
That's why we can't put too much weight on a single month's numbers.
Austin is not one market. A beautifully updated home in a desirable neighborhood can perform very differently from a property that needs work or is priced above what buyers are willing to pay.
My takeaway: Buyers have negotiating opportunities, but well-positioned homes are still attracting attention.
Are Dripping Springs home prices falling?
Dripping Springs continues to be one of the most interesting markets to watch, particularly for buyers looking for more space, acreage, and the Hill Country lifestyle.
In ZIP code 78620, the median sales price dipped 7% to $562,500 in September.
But look a little deeper:
Average sales price: $827,405, up 22.6%
Price per square foot: $272, up 4.8%
Active listings: 249
Months of inventory: 4.8
Closed sales: 48, down 12.7%
So, are prices really falling?
Not necessarily across the board. Median price, average price, and price per square foot measure different things, and the mix of homes selling can have a big impact on monthly results.
That's particularly important in Dripping Springs, where properties range from neighborhood homes to luxury estates and acreage.
For families considering a move from Austin into the Hill Country, there's real choice right now. And for buyers looking at land, custom homes, or larger properties, understanding the individual property and its competition matters far more than a ZIP code average.
My takeaway: This is a market where careful property selection, pricing analysis, and negotiation can make a meaningful difference.
What's happening in the Lakeway real estate market?
Lakeway saw a nice jump in sales activity during September, with 32 homes closing, up 23.1% from last year.
Meanwhile, the median sales price softened 6.1% to $675,000, and inventory sits at 5.5 months.
Homes sold for an average of approximately 91.8% of their original asking price.
More sales at a lower median price suggest buyers are finding opportunities, particularly when sellers adjust to current market conditions.
For buyers considering Lakeway, whether for the lifestyle, proximity to Lake Travis, or a little more breathing room, this is a market worth watching.
My takeaway: There's room to negotiate on the right properties, but pricing and condition still drive the conversation.
Is Bee Cave a seller's market?
Bee Cave is a great example of the importance of looking beyond the broader Austin headlines.
Only 8 homes closed in September, but those homes averaged just 32 days on market and sold for 96.5% of their original asking price.
The median sales price rose 12.1% to $801,250, with 3.9 months of inventory.
Compared with the surrounding markets, Bee Cave appears relatively tight.
But with only eight closings, one or two transactions can move the monthly statistics significantly. I prefer to watch several months of activity before drawing big conclusions.
My takeaway: Buyers should be prepared when a well-priced property comes along, while sellers still need to understand their specific competition.
How is the Westlake luxury real estate market doing?
Westlake's luxury market made some big headlines in September.
In ZIP code 78746:
Sales volume: $62.3 million, up 32.6%
Average sales price: $2.40 million, up 27.5%
Median sales price: $1.52 million, down 8.2%
Price per square foot: $570, up 8.7%
Months of inventory: 4.5
But here's what's especially interesting.
Just three new-construction sales accounted for approximately $20 million of the month's total sales volume. Those properties averaged roughly $6.67 million each.
Existing-home sales volume actually declined 2.1%.
That tells a much more nuanced story than the headline numbers.
And another large consideration in the luxury space not reflected in this data in the private market.
Luxury buyers are still spending big, particularly on exceptional new construction at the very top of the market. But that doesn't mean every luxury property is experiencing the same demand.
My takeaway: In Westlake, property-specific pricing and positioning are critical. The right home can command a premium, but buyers are discerning.
Is now a good time to buy a home in Austin?
Welcome to deal season.
Here's where things get interesting for buyers.
Fall and winter are what I like to call deal season.
As the holidays approach, some sellers take their homes off the market, while others have a reason to get a deal done.
With 5.4 months of inventory across Greater Austin and homes selling for an average of 92.7% of their list price, there's room to negotiate in the right situations.
Does that mean every seller is desperate? Absolutely not.
But buyers who stay active while everyone else is distracted by holiday plans may find some opportunities worth exploring.
I've seen how much timing, property condition, and seller motivation can influence a negotiation. Sometimes the opportunity isn't just a lower price. It may be closing-cost assistance, repairs, or terms that make the purchase work better for you.
Historically, our market tends to gain momentum again as we head toward spring, often around mid-March.
If you've been waiting for the right time to explore Austin or the Hill Country, I wouldn't overlook the next few months.
Thinking about selling your Austin home this spring? Start now.
While buyers may be looking for opportunities this fall, sellers have an opportunity of their own: time to prepare.
If you're thinking about listing in the spring, now is when I'd start putting a plan together.
Pricing and presentation are two of the biggest factors we can control, and thoughtful preparation can make a significant difference.
That might mean tackling a few strategic updates, coordinating vendors, refreshing landscaping, or simply understanding which improvements are worth the investment and which ones aren't.
My approach is to evaluate your home, your competition, and the likely return before recommending where to spend money.
Let's build a make-ready plan now so you're not scrambling when the spring market arrives and the contractors and trades are busy and charging a premium.
Austin Housing Market FAQs
Is Austin a buyer's or seller's market right now? With 5.4 months of inventory across Greater Austin, the overall market is generally considered balanced. But conditions vary significantly by neighborhood and price point. Bee Cave, for example, had 3.9 months of inventory in September, compared with 5.5 months in Lakeway.
Are Austin home prices dropping in 2026? It depends on the area and time period. The City of Austin's median price increased 4.2% year over year in September, but declined 1.2% for the third quarter overall. Individual neighborhoods and property types can tell very different stories.
Can buyers negotiate on Austin homes right now? Yes, in many situations. Across Greater Austin, homes sold for an average of 92.7% of their list price in September. That suggests room for negotiation, although it doesn't mean every home will sell at that discount. Property condition, pricing history, competition, and seller motivation all matter.
When is the best time to buy a home in Austin? Late fall and winter can offer opportunities for buyers who want less competition and potentially more motivated sellers. However, the best time ultimately depends on your financing, goals, and the specific property.
How do I find out what my Austin or Dripping Springs home is worth? Online estimates can be a starting point, but they’re often inaccurate. They don’t account for every feature that influences value, particularly with luxury homes, acreage and unique properties. And because Texas is a non-disclosure state, sale prices aren’t public record, so those estimates are often based on a very small portion of actual sales data. A custom market analysis looks at comparable sales, current competition, condition and buyer demand.
Let's talk about your real estate goals.
Real estate is hyperlocal. Your neighborhood, price point, property type, and timing matter far more than any headline.
Whether you're buying, selling, or investing in Austin, Dripping Springs, Lakeway, Bee Cave, Westlake, or the Texas Hill Country, I'd be happy to help you make sense of the numbers and build a strategy around your goals.
Curious what the market looks like in your neighborhood?
Jenn Salladay
Broker Associate | Global Real Estate Advisor
Christie's International Real Estate | @properties Lone Star
512.818.6146
Sources: Unlock MLS, September 2026 and Q3 2026, City of Austin and Austin-Round Rock-San Marcos MSA; Texas Real Estate Research Center at Texas A&M University, Austin Board of REALTORS data, September 2026, ZIP codes 78620 and 78746, Lakeway and Bee Cave. All residential property types, including single-family homes, condominiums, and townhomes. Year-over-year comparisons are to September 2025 unless otherwise noted. Equal Housing Opportunity.
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