South Central Austin September Market Recap and Outlook

South Central Austin saw median home prices drop to $486,095 in September, a 20.3% decline compared to the same month last year. This figure represents 94 closed sales across neighborhoods like Zilker, Bouldin, and South Congress. The market also experienced a significant cooling in speed, with homes spending an average of 58 days on the market, up 45% from September 2025. ALEX Intelligence analyzed the full year of data to contextualize this shift. While sales volume remained relatively stable at 94 closings compared to 91 last year, the price per square foot dropped to $367, down 7.8% year-over-year. Sellers are accepting less than their original asking price in 87.2% of deals, with the final sale price averaging 91.5% of the list price. The data reveals a clear trend toward affordability adjustments rather than a collapse in demand. New construction accounted for only 8 of the 94 closings, suggesting that existing inventory is driving the current activity. With 618 active listings and 5.3 months of inventory, the market has shifted from a seller's advantage to a more balanced environment where buyers have increased negotiating power. Looking ahead, the monthly recap indicates a stabilization period. The median home size sold decreased slightly to 1,451 square feet, reflecting a shift in buyer preference or available stock. As mortgage rates hover near 7.32%, the market continues to adjust to higher borrowing costs while maintaining steady transaction volumes. Want to see this home? Call or text George at 713.918.9951 for a private showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog