May 2026 Austin Real Estate Market Update

May 2026 Austin Real Estate Market Update

It’s May, and we are back with another Austin real estate market update. My colleague Lee Abraham and I run the Shapiro Group here in Austin, and every month we open up the stats and walk you through what is actually happening, not what the headlines want you to believe.

This month, the story is pending sales. We just crossed a thousand pending sales in the city of Austin for the first time in a long time, and that one number is changing a lot of the picture underneath. Listings are climbing the way they normally do in spring, but demand is climbing faster. That is a setup we have not seen for a few years.

Watch Now

Watch our video report below for all of the current statistics and our forecast for the Austin Real Estate Market. Or click here to watch it on YouTube.

Pending Sales Just Crossed 1,000

The headline number this month is pending sales: 1,048 in the past 30 days. That is the first time we have seen a comma in that stat in quite a while, and it is well ahead of the 800-and-change in closed sales over the same window.

What that tells us is that demand is showing up. Active listings climbed to 3,047, but because pending sales jumped even faster, monthly housing inventory actually fell slightly to 2.91 months. More homes for sale, more homes going under contract, less time on market. That is a healthier rhythm than we have had in a while.

A Possible Early Signal of a Stronger Selling Season

Looking at the listing inventory barometer, which tracks new listings against pending sales week by week, we hit 200% for the week of April 5–11 and were over 150% for two weeks in the month. That is the supply-demand coverage ratio we have been hoping to see. It gives buyers more breathing room and gives the market the inventory it needs to translate demand into actual transactions.

There is something else worth flagging: in the most recent month, inventory retracted in two separate weeks. Going back to last year, you do not see retractions like that until June or July. This is a leading indicator, and it is telling us this selling season may be stronger than the last couple.

The May 2026 Numbers at a Glance

Active Listings & Inventory

The interesting tension here is that active listings are up, but inventory months are down. That is what happens when demand catches up with supply.

  • Active listings: 3,047, up with normal spring seasonality
  • 30-day pending sales: 1,048
  • Monthly housing inventory: 2.91 months

We will be watching closely next month to see if buyers keep showing up at this pace or if the seasonal lift in listings starts to outrun them.

Sales Per Month

  • ~800 closed sales

This is the part of the story we keep coming back to. Historically, May in Austin produced about 1,300 sales. We are running closer to 800, which is roughly 38–40% below what a normal May would generate. This is year five of anemic sales volume. The pending number suggests next month could finally start to close that gap.

Average Sale Price

  • $815,000 Average Price
  • Down slightly year-over-year, up slightly month-over-month
  • Roughly 11% below the 2022 peak of $914K

Worth noting: the median price is down about 17% from its all-time high while the average is down only 11%. That gap tells us the luxury end of the market is holding up better than the middle. The high-end is still moving.

If you bought before the pandemic, you have meaningful equity. If you bought in 2022, you may still be a bit underwater on paper. We are also seeing people who bought in 2024 selling at or near break-even, but it is hyper-local. Every property is its own story.

Days to Sell

  • 46 days
  • Down 23% month-over-month, up 2% year-over-year

That is right in line with normal seasonality, and 46 days is not far off the 32–40 days we saw in healthy pre-pandemic markets like 2018 and 2019. This is a relatively healthy number, especially given everything else going on.

New Listings

  • ~1,500 new listings
  • Down year-over-year

Here is one of the more interesting stats this month. We are at 1,500 new listings, almost exactly where we were in May 2019, and a bit below 1,700 in May 2018. New listings being down year-over-year, with pending sales surging, is exactly the kind of supply-demand setup that can drive prices upward if it holds.

Sale Price to List Price Ratio

  • 97.62%
  • Down slightly year-over-year, up slightly month-over-month

In a market with strong, consistent price appreciation, this number typically sits closer to 99%. At 97.62%, we are on the low side of healthy, which fits the up-and-down market we have been in. The direction matters more than the number though, and it has been trending up year-to-date. If pending sales hold, expect this to keep climbing.

Mortgage Rates Settle Back Down

Last month we reported rates around 6.48%. We are now at 6.3%, still up from the 5.98% we hit two months ago, but moving back in the right direction.

If we can get this number to settle below 6%, psychologically that will mean a lot to buyers who are still on the fence. Even small movements down from here can pull more buyers off the sidelines.

My Advice for May 2026

If you are Buying:
Get out there and start looking. Even if you do not find the perfect home right now, you will be in tune with what is listed, how quickly it is selling, and what realistic expectations look like. The big caveat: when you find a property you love, move quickly. Quality listings are selling fast. The stale stuff sitting on the market is the lower-quality inventory. The good homes are not waiting around.

If you are Selling:
Do not wait. Inventory is still relatively low and demand is showing up. Listing now lets you take advantage of the spring momentum before the wave of late-spring and summer listings dilutes attention.

Want to know what is happening on your block?
Austin real estate is hyper-local, not just down to the zip code but down to the neighborhood and the specific home. If you want a deeper read on your property, reach out. Lee is a former appraiser, and there is nobody better in Austin when it comes to narrowing in on pricing. He would be happy to chat about your home and your goals.

Thanks for joining us. We will see you next month.