OHA Market Update Series - Nov 19,2025
National: Parents are increasingly using the equity in their homes to help their children break into the housing market, providing down-payment assistance or co-buying opportunities. This support can make homeownership possible for first-time buyers in a market defined by high prices, rising interest rates, and limited inventory.
Local: The Austin housing market is entering a new season—one defined by stability, momentum, and genuine opportunity. According to the latest October 2025 Central Texas Housing Report from Unlock MLS, we’re starting to see the early signs of a meaningful shift. After years of dramatic highs and lows, the Austin-Round Rock-San Marcos region is settling into a balanced rhythm that benefits both buyers and sellers.
Intrigued? Keep reading.
(4 minute read)
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
The Austin Market Is Turning: More Activity, More Balance, and Better Opportunities for Buyers
YOY Austin Round Rock MSA Report
The Austin housing market is entering a new season—one defined by stability, momentum, and genuine opportunity. According to the latest October 2025 Central Texas Housing Report from Unlock MLS, we’re starting to see the early signs of a meaningful shift. After years of dramatic highs and lows, the Austin-Round Rock-San Marcos region is settling into a balanced rhythm that benefits both buyers and sellers.
And for the first time in a while, buyers are regaining some real negotiating power.
Momentum Is Building: Pending Sales Are Up
Pending sales jumped 5.8% to 2,463, a sign that buyers who had been waiting on the sidelines are beginning to re-enter the market. This aligns with what many REALTORS® are seeing on the ground: renewed interest as inventory grows and prices remain stable.
Seven straight months of price steadiness points to a market normalizing—not cooling, not surging, but finding equilibrium. The median sales price ticked up slightly to $439,000, up 1.4% year over year.
Inventory Continues to Expand—Creating Breathing Room
Active listings rose 12.4%, and new listings increased nearly 8%, pushing inventory to 5.3 months, the most balanced level we’ve seen in years. This is a welcome shift from the frenzied market of recent memory, where buyers had to compete fiercely for limited homes.
More options often mean more thoughtful decisions—and less pressure to rush.
Negotiation Power Is Back: Homes Closing 8% Below List Price
One of the most telling indicators of the current opportunity?
Homes are closing, on average, at 92% of list price—meaning buyers are securing homes around 8% below asking.
This is significant. It signals that while demand is rising, sellers must still price strategically, and buyers have space to negotiate with confidence.
A Balanced Market Benefits Everyone
Vaike O’Grady of Unlock MLS captured it perfectly: “After several years of volatility, what we’re seeing now is a housing market that’s functioning the way it should.”
Stability is returning. Pricing is consistent. Inventory is healthy. And interest rate cuts have started to encourage hesitant buyers to make their move.
For sellers, this means homes that are priced well and presented beautifully are still attracting strong interest.
For buyers, it means affordability is improving and the competition is far less intense than the market we knew in 2021–2022.
Why Guidance Matters More Than Ever
With more moving pieces—rising inventory, shifting demand, rate changes—having a trusted real estate professional is essential. As 2025 Unlock MLS and ABoR President Brandy Wuensch points out, REALTORS® offer far more than simple transaction management. They help buyers and sellers understand the full picture, identify opportunities, and navigate a market that requires strategy, timing, and clarity.
Bottom Line: Austin Is Entering a Healthy New Phase
Here’s what the October data tells us:
The market is turning: Pending sales are rising, and buyer confidence is improving.
Affordability is expanding: Homes are closing below list price, giving buyers leverage again.
Inventory is balanced: More choices, less competition, and room to negotiate.
Prices are steady: A sign of long-term stability, not volatility.
This is the most balanced and empowering market Austin has seen in years—especially for buyers who felt shut out before.
If you’ve been waiting for the right time to explore your options, October’s numbers are a strong signal: the window is opening. And whether you’re planning to buy, sell, or simply understand where things are headed, having the right guidance can turn a good opportunity into a great one.
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
The Growing Trend of Parents Using Home Equity to Help Their Kids Buy a Home
Hey everyone — Jennifer here. Lately I’ve been seeing (and reading about) a major shift in how Americans are becoming homeowners for the first time. More and more parents are tapping into their own home equity to help their adult children buy a house — not because it’s a luxury, but because, for many young buyers, it’s becoming the only realistic way in. With rising prices, elevated mortgage rates, and wages that haven’t kept up, the path to homeownership has changed so dramatically that family support is no longer rare… it’s increasingly a part of the strategy.
What’s Going On Nationally
Across the U.S., the affordability gap is widening, and it’s pushing families to rethink how the next generation enters the market.
Affordability Is Tightening
Home prices have outpaced income growth in most parts of the country, and mortgage costs remain stubbornly high. Even well-qualified buyers feel the squeeze.Mortgage Rates Are Working Against First-Time Buyers
Higher borrowing costs mean monthly payments jump significantly, reducing purchasing power and locking many would-be buyers out of homes that would have been accessible just a few years ago.First-Time Buyers Are Being Pushed Back
The share of first-time buyers is at historic lows, and the median age for buying a first home is climbing. It’s not hesitation — it’s the numbers.Many Households Can’t Afford New Construction
With nearly three-quarters of U.S. households priced out of a median-priced new home, the starter-home pipeline has thinned dramatically.The National Homeownership Rate Is Stalling
After years of gradual recovery, the U.S. homeownership rate has flattened — and in some quarters, slipped — signaling deeper structural challenges.
Why Parental Support Is Becoming So Common
In this environment, parents with meaningful home equity have an advantage earlier generations didn’t fully recognize: their homes have appreciated so much that tapping into that equity (through a HELOC, cash-out refinance, or bridge loan) can be the difference between their children owning a home or remaining long-term renters.
For many families, it’s not about gifting wealth — it’s about leveraging the only asset that has outpaced inflation, wages, and rent in a sustained way.
I’m seeing parents help in three main ways:
Equity-backed gifts for down payments
Shared-ownership models as a stepping stone
Co-signing to strengthen a buyer’s purchasing power
It’s practical, not indulgent. And given the reality of the market, it’s increasingly realistic.
What This Means for Americans Generally
Homeownership is becoming a “team sport.”
Instead of a single-income or dual-income path, many families are combining resources.Wealth building is diverging.
Those with parents who own homes have access to intergenerational equity; those whose families rent often do not.Milestones are shifting.
Many aspiring buyers are delaying marriage, children, or relocations while they wait for affordability to catch up — and some are turning to parents as a way to move life forward.We may see a long-term shift.
If younger generations can only buy with help, this becomes a generational pattern — not a temporary blip.
My Take
There’s no question that homeownership is still powerful — for stability, wealth-building, and the simple joy of having a place you can truly make your own. But the path to getting there today is more complex, more expensive, and more interdependent.
If you’re a first-time buyer:
Don’t be discouraged if the numbers feel overwhelming — many people are in the same place.
If your family is open to helping (and they’re in a stable financial position to do so), those conversations can be hugely impactful.
Even small equity-backed contributions can unlock better loan terms or lower monthly payments.
If you’re a parent:
Helping doesn’t have to mean giving away a chunk of your future retirement.
Tapping equity thoughtfully can support your children without compromising your long-term financial health.
It’s important to explore all loan structures, repayment agreements, and tax considerations.
And for everyone:
Strategy matters more than ever.
The dream isn’t dead — it’s just different.
With planning, transparency, and the right structure, families can navigate this market together in a way that feels grounded and sustainable.
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dog, yoga and pilates, and has been enjoying gardening at her new home in East Austin🎶✨
