Central Texas Housing Market Update: Lower Asking Prices Meet Higher Mortgage Rates

Updated October 5, 2026

Home shoppers across the Austin–Round Rock–San Marcos area are seeing lower asking prices than they did a year ago. At the same time, higher mortgage rates are putting more pressure on monthly budgets. For buyers and sellers, the useful question is how those two changes play out in the specific neighborhood and price range that matter to them.

September listings show a shift in asking prices

The metro’s median listing price was $446,450 in September 2026, down 9.8% from September 2025, according to Realtor.com’s report published September 30. Median asking price per square foot fell 8.4% year over year, the largest decline among the 50 major metros in the report. Active listings rose 1.4%, and 27.3% of listings had a price reduction. That price-reduction share was 0.3 percentage points lower than a year earlier. realtor.com

These are listing statistics, not the prices buyers ultimately paid. A change in the mix of homes for sale can also affect the median. Still, the figures give sellers a practical reason to study current competing listings before choosing an asking price. Buyers may find room to negotiate on some homes, particularly those that have already reduced their price.

What the latest closed-sales report says

The latest available Unlock MLS Central Texas Housing Report covers August 2026 and was published September 15. Across the Austin–Round Rock–San Marcos metro, 2,501 homes closed, down 7.3% from August 2025. The median closed price was $412,000, down 6.4%. The report recorded 13,676 active listings, 5.1 months of inventory, and 2,623 pending sales, up 1.5% year over year. Unlock MLS

The September median asking price of $446,450 and August median closed price of $412,000 measure different homes at different stages and in different months. Their difference is not an average discount from list price. September closed-sales figures were not yet available in the Unlock MLS monthly report as of this update. realtor.com

The metro picture varies by location

August’s county results show why a local comparison matters. Williamson County had 960 pending sales, up 9.3% from August 2025, and 4.6 months of inventory. In Hays County, 346 pending sales were down 13.5%, while inventory stood at 5.5 months. Those county figures offer context for areas such as Round Rock, Georgetown, and San Marcos, but they should not be treated as statistics for any one city or neighborhood. Unlock MLS

Higher rates change the monthly-payment calculation

Freddie Mac reported a 7.28% national average for a 30-year fixed-rate mortgage on October 1, up from 7.03% on September 24. That is a national survey average, not a quote for a particular buyer. It does mean that someone shopping with an older payment estimate should ask their lender to recalculate it before making an offer. Freddie Mac

For buyers, the next step is to compare the total monthly cost of specific homes, including taxes, insurance, and any HOA dues, alongside the asking price. For sellers, it is to compare their home with the listings buyers can choose from today. Central Texas has more than one market within the metro; a current neighborhood analysis will say more than a single regional median.

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