Austin home-buying FAQ

For buyers planning to stay five or more years, conditions favor them more than they have since 2019. The market corrected from its 2022 peak, inventory sits around 4–5 months of supply — a balanced market — and bidding wars are rare. Sellers are negotiating on price, closing costs, and rate buydowns. If you're counting on rapid appreciation, be cautious: expect modest annual growth, not the 20% surges of the pandemic era.

The Austin metro median is around $450K, down from the May 2022 peak of about $550K. Suburbs run roughly $350–400K, while central Austin runs $550–700K. These are typical ranges, not appraisals — check the local MLS and county appraisal district for any specific property.

Texas has no state income tax, but property taxes run about 1.8–2.2% of value. On a $450K home that's roughly $8,100–9,900 per year. The homestead exemption saves about $1,000–2,000, and homeowners over 65 get a school-tax freeze. Budget property tax into your monthly payment from the start.

Eanes ISD (West Austin and Bee Cave) is consistently the top-rated district in the metro. Lake Travis, Leander, and Round Rock ISDs are all strong, with Leander often offering the best value: good schools at lower home prices. Austin ISD is mixed, with some outstanding campuses and magnet programs. Always research the individual campus, not just the district.

Rates have run roughly 6.0–6.8% through early 2026, down from a 7.5% peak but well above the pandemic-era 3%. Many builders offer rate buydowns below 5%. Local lenders such as credit unions often beat national banks on rate and close faster.

Often yes. Builders are competitive and offering incentives such as rate buydowns, closing-cost credits, and upgrades. New builds in suburbs like Cedar Park, Pflugerville, and Leander are frequently cheaper per square foot than resale in the same area. Always negotiate, and never skip the inspection.

Yes. Central Texas is prone to flash flooding, and flood-zone status affects insurance cost and resale risk. Check the FEMA Flood Map Service Center for any address before making an offer, especially for creekside or low-lying lots.

It's an unrestricted right to terminate the contract during a negotiated window — typically 5 to 10 days — in exchange for a small option fee of about $100–500. It's your time to inspect and renegotiate or walk away, losing only the option fee. Schedule the inspection on day one so you have time to act.

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