Austin, TX
Austin housing market given ominous warning
The vertiginous fall of home prices in Austin, Texas, seems to have no end in sight, according to experts who believe that steep declines are likely to continue in the coming months.
A recent analysis by real estate intelligence platform Parcl Labs estimates that the Texas capital will see the biggest downturn in home prices in the country over the next year—even as the cost of buying a home in the city has already fallen drastically from its COVID-19 pandemic peak.
Austin’s housing market, according to Parcl Labs, is currently in “bear territory”—which means, essentially, that property values have been dropping for a consistent period of time—with home prices now over 20 percent down from their peak.
Despite this dip, researchers at the company said, “we still expect home prices to decline 16.5 percent from current levels over the next 12 months. This is the largest expected decline in our coverage universe of 40 real estate markets nationally.”
Behind Austin’s Housing Market Downfall
According to Redfin, the median sale price of a home in May—the latest month for which reliable monthly figures are available—was $557,500, down 5 percent from a year earlier. At their peak in May 2022, home sale prices in the city had reached a median of $667,000—which means that buying property in Austin was over $200,000 more expensive than it had been before the pandemic, when it was around $400,000.
In the same month, home sales in the city were down by 12.1 percent year-over-year, at 861, and those homes that went under contract spent an average of 48 days on the market, six more than in May 2024. Active listings in the Austin-Round Rock metropolitan area totaled 12,525, up from 9,902 a year earlier. Inventory was actually higher than pre-pandemic level and the highest going as far as 2016, according to data from Realtor.com.
“It’s important to understand why these adjustments are happening and what they represent for the health of the market,” Emily Girard, chief executive officer (CEO) of Unlock MLS and the Austin Board of REALTORS (ABOR), told Newsweek. “What we’re seeing in Austin is a necessary and overdue normalization after an unprecedented period of price acceleration during the pandemic. It is a return to sustainability.”
Home prices skyrocketed during the pandemic homebuying frenzy unleashed by historically low mortgage rates.
“In 2021 during the pandemic, more homes were sold in the Austin-Round Rock MSA than ever before, and sales dollar volume yielded more than a $23 billion impact on the Austin-area economy,” Girard said. “The pandemic led to increased demand as buyers in the market had more disposable income and reevaluated their needs in a living space after spending months at home.”
She added: “That, combined with record-low interest rates at the time and an Austin economy that continued to make major company relocation announcements regularly, led to more homes being sold and prices increasing to an unsustainable level.”
The price declines that the city has been experiencing for the past couple of years represent “healthy adjustments,” Girard said as the market “normalizes.”
And prices, as experts say, are continuing to fall.
According to Redfin data, Austin was one of the metros reporting the biggest year-over-year declines in median sale prices, at -4.2 percent, in the four weeks ending July 6.
Buyers on Top
The Austin housing market downturn does not mean that the city has now become undesirable for buyers—quite the opposite.
“For buyers, this is one of the most favorable environments we’ve seen in years,” Girard said. “Buyers have time to shop, compare and negotiate—luxuries that weren’t available during the pandemic boom. They’re in the market with more intention and more options, especially with increased affordability for first-time and moderate-income homebuyers.”
Sellers might have a harder time accepting that they no longer have the upper hand, and they may be forced to compromise on prices—especially as price declines are expected to continue.
“Prices will continue to drop this year. That’s because the last half of the year we always have more inventory. And if you ever look at the seasonal bell curve in Austin’s selling season, prices always come down in the last half of the year,” Austin-based realtor Jeremy Knight told Newsweek. “Yet, there are a lot of buyers on the sidelines. If we do see rates come down in the last half of the year, you’ll see more closed numbers and buyers frantic in the market.”
Unfortunately, a majority of experts expect mortgage rates to continue hovering between the 6 and 7 percent marks through this year and 2026.
Austin, TX
Austin Animal Services Hosts Free Spay/Neuter Clinic
Austin Animal Services is hosting a free, high-quality, high-volume spay/neuter for cats and dogs now through March 2 in North Austin.
The five-day clinic, which is being held in partnership with Greater Good Charities, is taking place at 11580 Stonehollow Dr., Suite 160. Registration and drop-off begin on-site each day from 7:30-10 a.m. or until capacity is reached.
In addition to free spay/neuter surgeries, pets receiving surgery will also receive vaccinations, flea and tick prevention, and microchips, ensuring that they return home healthier and better protected.
Spaying and neutering is the most effective tool in preventing unplanned litters and reducing the number of stray and surrendered animals entering local shelters. Managing overpopulation helps individual owners and also strengthens community health by reducing roaming animals, easing shelter overcrowding, and decreasing long-term strain on animal welfare resources.
This is the seventh free clinic the city has hosted since 2024. The previous six clinics provided spay/neuter services to more than 6,000 pets. The upcoming clinic is expected to complete approximately 1,200 surgeries in just five days. It is a significant investment in prevention that helps reduce future shelter intake and supports responsible pet ownership across Austin.
High-volume, high-quality spay/neuter clinics offered at no cost are rare, and many pet owners face procedure costs ranging from $75 to several hundred dollars, along with wait times that can stretch for weeks or months. This clinic removes those barriers by providing same-day services at no charge.
“This clinic is about prevention,” said Austin Animal Services Director Monica Dangler. “When we provide accessible spay and neuter services, we’re helping families care for their pets while also reducing strain on shelters like ours and improving safety across our community.”
Austin, TX
Why is Austin so warm in February?
AUSTIN, Texas — February is typically one of our cooler months in Austin, Texas.
In 2021, a series of ice storms and snow storms caused mass chaos and is a winter storm that Austinites will never forget. Now, instead of worrying about scraping ice off of our cars, we’re grabbing the swimsuits.
Austin is in the midst of one of the warmest February’s in the city’s history. This year’s January cold snap lingered around for Feb. 1, but since then, only two days have been slightly below average. Compare that with 20 days above average, with the rest of this month expected to have temps in the mid to upper 80s.
But how does this compare to our warmest February ever? We don’t have to go back too far to find the hottest February on record in 2017. The average high temp was 76.5 degrees with 12 out of the 28 days spent above 80 degrees.
Other years in the top 5 were 1999, 1976, and 1957 with each year having numerous days above 80 degrees. So far, 2026 has ten. Plus, I’m forecasting 2 more 80 degree days. Should we hold onto this weather pattern, this will be in the top five hottest February’s of all-time.
Austin is in the midst of one of the warmest February’s in the city’s history. (Graphic: Michael Crowley)
For some, this heat may be just another day to grab the swimsuit or head outside and work up a sweat, but this has meteorologists sweating for different reasons. We are in a serious drought now.
The latest drought monitor released on Feb. 26, 2026 has 9 of the 13 counties in the CBS Austin viewing area in an “extreme drought,” which is the second worst category of drought conditions.
The latest drought monitor released on Feb. 26, 2026 has 9 of the 13 counties in the CBS Austin viewing area in an “extreme drought,” which is the second worst category of drought conditions. (Graphic: Michael Crowley)
In the past 190 days, two of those days have had rainfall over 1 inch. Our current streak of 123 days in a row with less than 1 inch in rainfall is one of the longest since 2000.
Combine the heat and the rainless days, and you get a flash drought. Opposite of a flash flood, hot temperatures rapidly dry out the soil and drought conditions can worsen quickly. With the dehydrated vegetation, dry air, and above average temperatures, you’re now looking at dangerous fire weather.
We’ve already had several fires reported across Central Texas in just the past week. The Nebo Mountain Fire in Gillespie County and the Cedar Gulch Fire in Burnet County. With this above average heat and below average precipitation, we are especially vulnerable.
But there is some good news.
The start of March looks to be starting off very warm, but our pattern looks to become a bit more active. Our long-term futurecasts look to be favoring more showers and storms possible for the first few weeks of March.
Remember that we are also getting closer to our severe weather season. So while we do need the rain, we must remain safe in case we get locally high rainfall amounts in these thunderstorms and be mindful of tornadoes and damaging winds.
Hopefully we can see an improvement in this drought and heat, but history is made in different ways every year nowadays. Maybe it’ll be for the right reasons this time around.
Austin, TX
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