Is the Austin housing market cooling down?  If the real estate market had a spirit animal right now, it would be a squirrel. In the middle of the road. It’s stuck, indecisive, not sure whether to dart left or right. Buyers and Sellers are both hesitating, waiting for a clear signal on what the next move should be.

On one hand, we’ve got more inventory than we’ve had in years, which is giving buyers plenty of options, and slowing down the process. The summer slow down happens every year too.

On the other hand, interest rates are still higher than most people want, and that creates a major affordability hurdle. Sellers are holding onto their homes longer, reluctant to trade in their lower mortgage rates. Remember Sellers are Buyers too.

Why is Austin real estate slowing down?

This is the tricky standoff we’re seeing play out in the Austin real estate market. On one side, we’re seeing more and more signs of a buyer’s market with an increase in Austin housing inventory and a cooling of Austin home prices from their recent highs. But even with more options, the reality of high interest rates for Austin is a major hurdle. It’s a classic tug-of-war, with both sides pulling and neither making much progress.

The tricky part is that real estate decisions are often driven by emotion. Typically, when someone falls in love with a house, that emotional pull is strong enough to push them into action. But right now, the emotions that usually drive decisions are being reeled in by uncertainty—“Can I really afford this payment? What if rates change again? What if the market shifts?” Those lingering doubts are keeping a lot of would-be Buyers and Sellers frozen in place.

So, just like that squirrel in the middle of the road, the market isn’t moving quickly in either direction. In the end, if you want to buy or sell, you have to find a way to get off the road.