If you are planning to buy a home in Austin, clarity beats headlines. Prices have eased or flattened in many segments, inventory is up, and buyers have more room to negotiate than in the 2021 to 2023 frenzy. At the same time, mortgage rates are still higher than the low-rate years, so payment planning matters. This guide shows you what to expect now and how to move with confidence.
You can expect a more balanced market overall, with big differences by price point and property type. Entry-level single-family homes that are priced well can still go quickly. Luxury homes and many condos often sit longer and see more price cuts. Local MLS reporting shows months of inventory around the mid 5s in early to mid 2025 for the city and metro, which aligns with a more buyer-friendly pace in many areas according to Unlock MLS.
Buyers are also seeing more closings below the original list price, especially for homes that sit on the market several weeks. Early 2025 coverage highlighted a surge in under-list sales, which tracks with what buyers are feeling at showings and in negotiations as reported by Axios Austin.
Inventory has grown versus 2023 and early 2024. Unlock MLS reported roughly 5 to 6 months of supply in early 2025 for the City of Austin and the metro, with some submarkets higher and some lower per the Central Texas Housing Report. More supply gives you time to compare homes and negotiate. It also means pricing power depends on the segment. Starter homes near top schools may still move fast. Downtown condos or upper-tier listings may require stronger pricing to sell.
What this means for you: expect more time to decide, better odds of seller concessions, and less need to waive protections. Still, move quickly when the right home is priced well and checks your boxes.
Price reductions are more common now than during the pandemic surge. A larger share of homes have sold below original list in 2025, which opens the door to negotiating repairs, credits, or a lower price on properties that sit as noted by Axios. Luxury listings and some condo buildings have the most visible leverage for buyers, with longer marketing times and deeper cuts in certain cases covered by The Real Deal.
What this means for you: target homes on market 21 to 45 days for the best blend of choice and leverage. Use recent comps and days-on-market to shape your offer strategy.
Rates still shape what you can afford. The average 30-year fixed was about 6.34% on October 2, 2025, down from earlier highs but still above pre-2022 levels per Freddie Mac. The Federal Reserve cut its policy rate in mid-September 2025, which helped ease mortgage costs, but not back to early-2020 levels according to the Federal Reserve. Because rates move, lock a budget range, not just a home price. Build a cushion for possible swings.
What this means for you: align price targets with an all-in monthly payment that feels sustainable. If rates dip, you can adjust your ceiling or consider a refinance later.
In starter-friendly neighborhoods or for well-priced homes, you may still face multiple offers. Get fully preapproved so you can tour and offer on short notice. Decide your top terms ahead of time: maximum price, closing window, and contingency limits. In slower segments, take time to revisit, measure, and bring a contractor to inspection.
You can write a strong offer without stretching beyond value. Consider:
In many cases, well-structured terms beat small price differences.
With prices softening in some slices of the market, appraisals can come in tight if the contract price is above recent comps. Plan for this:
Inspections are also powerful in a balanced market. Ask for safety and system repairs or a credit if issues surface. Inventory growth has made sellers more open to reasonable requests consistent with the more balanced conditions noted by Unlock MLS.
Line up a full underwritten preapproval if possible. Compare programs:
Income matters too. Median household income in Travis County is near the upper 90s according to recent Census series, but payments at today’s rates still press budgets for many households U.S. Census QuickFacts.
If you want payment relief, consider points or a temporary buydown. In a buyer-leaning segment, ask for seller credits and apply them to closing costs or a buydown to reduce your monthly payment. This can be more efficient than a small price cut when rates are the main pain point supported by current rate context from Freddie Mac.
Know your full cash need: down payment, lender and title fees, prepaids, inspections, and reserves. Use a conservative rate assumption to stress-test your budget. If you are VA-eligible, factor in funding fee options and exemptions. Keep a cushion for immediate repairs and furnishings so the move stays comfortable.
Match your commute and lifestyle to your budget and property type. Watch for week-to-week changes in active listings and pendings in your target ZIPs for the best read on your micro-market via the Central Texas Housing Report.
Project your total cost: property taxes, insurance, utilities, HOA or condo fees, and routine maintenance. Factor in potential assessments for certain condo buildings. In a cooling segment, higher HOA dues can affect days on market and pricing power.
If you are moving on a tight timeline, set up virtual tours, remote document signing, and on-the-ground inspections. Ask about short-term housing options to bridge the gap between closing and move-in. Texas labor data shows the region continues to add jobs, which can affect local demand, so readiness matters Texas Workforce Commission.
If you want a calm, step-by-step plan tailored to your budget and timeline, I am here to help. I specialize in VA and relocation planning, offer white-glove guidance, and move fast when the right home appears. Schedule a no-pressure consult to align financing, neighborhoods, and strategy.
Ready to take the next step? Start a conversation with Evie Hansen. We will review your goals, build a clear buying plan, and tour homes that fit your payment and lifestyle.
4204 Gardendale San Antonio TX 78253
4204 Gardendale San Antonio TX 78253