# Austin Housing Market Report: August 2025, Flood Insurance and What It Costs Here

> The Austin metro median sale price was $450,000 in August 2025, +1.1% year over year, with homes selling in 78 days and 5.5 months of supply. Flood Insurance and What It Costs Here, what the numbers mean if you are buying or selling in Austin.

Mike Vilece · September 15, 2025
Canonical page: https://theaustinlocalgroup.com/blog/austin-housing-market-august-2025/

The Austin metro median sat **20.4% below** its April 2022 peak in August 2025, at $450,000. Active inventory stood at 13,427 listings, up 16.6% year over year. The 30-year fixed averaged 6.59% that month. That made it a buyer's market.

## Austin market statistics, August 2025

| Metric | August 2025 |
| --- | --- |
| Median sale price | $450,000 (+1.1% YoY) |
| Median price per sq ft | $216 (-2.4% YoY) |
| Homes sold | 2,459 (+0.1% YoY) |
| New listings | 2,835 |
| Active inventory | 13,427 (+16.6% YoY) |
| Months of supply | 5.5 |
| Median days on market | 78 |
| Sale-to-list ratio | 97.0% |
| Sold above asking | 11.7% |
| Listings with a price cut | 36.3% |
| 30-year fixed rate (avg) | 6.59% |

## Flood Insurance and What It Costs Here

The median printed up 1.1% year over year, the first positive reading in months. On the practical side, after July: standard homeowners policies do not cover flood. NFIP coverage caps at $250,000 on the structure and takes 30 days to take effect, and plenty of Austin-area flooding happens outside mapped floodplains. Get a quote during your option period, not after closing.

## What changed since July 2025

The median rose $10,000 from July 2025, a 2.3% move. Time on market lengthened by 10 days, to 78. Active inventory shrank by 776 listings, to 13,427. The share of homes selling over asking gave up 1.1 points, to 11.7%.

One month is noise. The reason to read it anyway is that direction shows up in inventory and days on market well before it shows up in price, so the months where those two disagree with the headline number are the interesting ones.

## Where this month sits in the cycle

| | August 2025 | July 2025 | August 2024 | Since Oct 2016 |
| --- | --- | --- | --- | --- |
| Median sale price | $450,000 | $440,000 | $445,000 | range $255,626–$565,000 |
| Median days on market | 78 | 68 | 66 | range 16–99 |
| Active inventory | 13,427 | 14,203 | 11,520 | range 2,660–14,231 |
| Months of supply | 5.5 | 5.9 | 4.7 | range 0.9–5.9 |
| Sold above asking | 12% | 13% | 11% | range 9%–75% |
| 30-year fixed rate | 6.59% | 6.72% | 6.5% | range 2.68%–7.62% |

The right-hand column is the range this series has covered since October 2016. No forecast in it, just where August 2025 falls against every month that came before it.

## If you are buying in Austin right now

At 5.5 months of supply this is a buyer's market, and 78 median days on market is the negotiating position. A listing that is ninety days old belongs to a seller whose plan is not working. That is worth more than any clever offer strategy.

The average home sold for 97.0% of asking, so roughly 3.0% under list was the normal outcome, not an insulting one.

**The payment math.** At $450,000 with 20% down at 6.59%, principal and interest runs about **$2,297 a month**. Add roughly $750 for property taxes and $300 for insurance and you are near **$3,347 a month** all in. Texas has no state income tax and this is where the state collects instead, budget the tax line from day one, not as an afterthought.

**If you are selling:** with 13,427 active listings and 78 median days on market, you are competing against a lot of houses and a patient buyer. Price ahead of the market rather than chasing it down, and consider funding a rate buydown, at these rates it moves a buyer's monthly payment more than an equivalent price cut does.

## Neighborhood in focus

**East Austin (78702).** Holly, Rosewood. Known for creative, eclectic, strong appreciation. It fits buyers who want character and culture.

The metro numbers above are an average of a very unequal city, East Austin does not move in lockstep with Kyle or Leander, and the gap between ZIPs widens in exactly the months the metro looks calm. There is a longer, more honest write-up at [/neighborhoods/east-austin/](/neighborhoods/east-austin/), including what is wrong with it.

## On in Austin, August 2025

| When | What | Why it matters to a listing |
| --- | --- | --- |
| Late August | **Bat Fest**, Congress Avenue Bridge | The Congress Avenue Bridge closes for the evening. A reminder that August in Austin is the month buyers stop touring and start waiting for October. |

## What is coming next

Proposition 13 on the November 4 ballot. Austin ISD is weighing school consolidations, which is a live question for anyone buying on a specific attendance zone.

## Common questions

### Do I need a buyer's agent in Austin, and who pays for one?

Since the NAR practice changes took effect in August 2024, you sign a written buyer representation agreement, specifying what your agent is paid and by whom, before touring a home. Compensation offers no longer appear in the MLS. Sellers can and frequently still do contribute to the buyer's agent fee; it is negotiated in the purchase contract now rather than advertised in the listing. The fee is negotiable and always was.

### I am moving to Austin from California. What actually surprises people?

Four things, in order of how much money they cost. Property taxes, which run roughly 1.8-2.5% and have no Proposition 13-style cap beyond the 10% homestead limit. Homeowners insurance, which is among the highest in the country because of hail. Summer utility bills in an underinsulated house. And foundations: much of the region sits on expansive clay that moves with drought and rain, so watering your foundation is a real practice here and a structural engineer's report is money well spent on any older slab home.

### How much do I need to earn to buy a median-priced Austin home?

At $450,000 with 20% down at 6.59%, the all-in monthly payment is roughly $3,347 including estimated taxes and insurance. At a 30% housing-to-income ratio that implies household income around **$134,000**. Lenders will approve you well above that; whether you should go there is a different question. Property taxes are estimated at 2.0% of value, verify the actual rate for the specific address, because a MUD can push it past 3%.

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*Part of a retrospective series on the Austin market, one post per month since 2016, compiled from the historical record. This edition covers August 2025; every figure is as reported for that month, and nothing in it looks past it.*

*Source: Redfin Data Center metro market tracker: single-family, Austin-Round Rock-San Marcos metro, not seasonally adjusted. Mortgage rates are the monthly average of the Freddie Mac Primary Mortgage Market Survey 30-year fixed rate. Payment, tax and insurance figures are estimates for illustration and are not a quote. Median sale price is not a guarantee of value for any specific property.*

*Written by Mike Vilece, a licensed Texas real estate agent with Compass in Austin. If you want the version of this that applies to your street and your budget, [ask me directly](/#contact).*

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