Austin's housing market has cooled significantly from its pandemic peak, and for buyers, that's the best news in five years. Prices are down roughly 20% from the 2022 all-time high. Inventory is up. Sellers are negotiating. And for the first time since before the pandemic, buyers in Austin and the surrounding metro have real leverage.
The Austin-Round Rock-San Marcos metro median sale price sits around $426,220 as of March 2026, down 3.4% year-over-year. The city of Austin proper is higher, with a median near $530,000 to $550,000 depending on the data source. Homes are taking an average of 58 to 85 days to sell, and 49% of active listings have had a price reduction.
I'm Ben Eddy, a wholesale mortgage broker and the founder of Colt Lending (NMLS #2032978), powered by Edge Home Finance (NMLS #891464). I help homebuyers across Austin, Georgetown, Leander, and the broader Central Texas area find the right mortgage by shopping over 100 wholesale lenders to find the best rate and program for each client. Here's what you need to know about buying in Austin this year.
The Austin Market Right Now
Austin's market has been correcting for four straight years. According to Team Price's Austin market data, the median sold price peaked at $550,000 in 2022. It dropped 15.5% to $465,000 in 2023, fell another 1.3% to $459,000 in 2024, slipped 2.9% to $445,500 in 2025, and is tracking a 1.2% decline so far in 2026.
That sounds alarming if you read it as a crash. It's not. The pace of decline is slowing each year, which means the market is working through the final stages of a correction, not falling off a cliff. Current prices are still roughly 35% above 2020 pre-pandemic levels.
Here's what the numbers tell you as a buyer:
The Austin metro has approximately 5.4 to 5.8 months of housing supply. That's right in the balanced market range of 4 to 6 months, tilting slightly toward buyers when you factor in days on market and the volume of price reductions.
Travis County saw 1,210 homes sold in March 2026, a 4% increase year-over-year. Pending sales jumped nearly 16% from March 2025, according to the Central Texas Housing Report from Unlock MLS. That tells you buyers are active and moving when pricing is right.
Homes are selling at roughly 98% of list price across the metro, though that number drops below 95% in price ranges and neighborhoods with higher inventory.
If you're also looking at the suburbs north of Austin, I wrote companion guides to Buying a Home in Georgetown and Buying a Home in Leander. Both cities border each other, share some school districts with Austin, and offer different market dynamics worth comparing.
What You Can Afford in Austin (By Loan Type)
Austin's price point is higher than most Texas markets, which makes loan selection even more important. Here's how the numbers look on a $500,000 home, close to Austin proper's current median:
Conventional with 5% down: $25,000 down payment. Estimated closing costs of $12,500 to $20,000. PMI of roughly $110 to $250/month depending on credit score. PMI drops off at 20% equity. Buyers with 620+ credit scores qualify, per Fannie Mae's eligibility guidelines.
Conventional with 3% down (HomeReady/Home Possible): $15,000 down payment. Must meet income limits (80% of area median income). Austin's AMI is relatively high, so more buyers qualify than you might expect. Lower PMI rates than standard conventional.
FHA with 3.5% down: $17,500 down payment. More flexible credit requirements with scores down to 500 with the right lender, per HUD's FHA guidelines. MIP stays for the life of the loan unless you refinance into conventional later. The 1.75% upfront MIP adds $8,531 to your loan balance on a $487,500 loan.
VA with 0% down: $0 down payment. No monthly mortgage insurance. Typically the lowest rates available. The funding fee of 2.15% can be rolled into the loan and is waived entirely for veterans with a service-connected disability rating, per VA.gov's funding fee schedule. Austin has a significant veteran and military-connected population, and VA loans are almost always the best option for eligible buyers.
Jumbo: The 2026 conforming loan limit of $832,750 covers the majority of Austin's market. You'd only need jumbo financing for higher-end properties in neighborhoods like Westlake, Tarrytown, Barton Creek, or parts of Lakeway.
As a wholesale broker, I run every applicable scenario side by side so you can see the actual monthly payment and total cost differences. The right loan type for an Austin buyer isn't always obvious until you compare the numbers across multiple lenders, which is exactly what the wholesale channel is built to do.
Austin Neighborhoods: Where to Look
Austin is a sprawling metro with neighborhoods that range from $250,000 starter homes to $3 million+ estates. Here's how the major areas break down for buyers in 2026:
East Austin / East Riverside / Mueller: East Austin has been the hottest transformation story in the city for over a decade. Mueller is a planned community near the former airport site with walkable streets, parks, and mixed-use development. East Riverside is seeing significant density and development. Prices vary widely from the $300s to $700s+ depending on the specific street and whether you're looking at new construction or older homes being renovated.
South Austin / South Congress / Zilker / Barton Hills: The heart of Austin's cultural identity. Live music venues, independent restaurants, Barton Springs Pool, and Zilker Park define this area. Pricing is premium, with medians well above the city average. Zilker and Barton Hills regularly exceed $800,000 to $1 million+. South Congress corridor is more accessible with condos and smaller homes.
North Austin / Domain / North Burnet: The Domain has transformed North Austin into a second downtown with corporate offices, retail, dining, and high-density housing. Surrounding neighborhoods offer more affordable single-family options. Good access to major employers. Prices in surrounding areas range from the $400s to $700s.
Central Austin / Hyde Park / North Loop / Crestview: Established neighborhoods with older homes, mature trees, and proximity to UT Austin. Hyde Park is one of Austin's most desirable historic neighborhoods. Pricing runs from the $500s to $1 million+ depending on lot size and condition. These neighborhoods have strong rental markets if you ever want to convert your home to an investment property.
Southwest Austin / Circle C / Shady Hollow / Belterra: Family-friendly suburban communities with strong schools (Austin ISD and some Hays CISD). Circle C and Shady Hollow are established master-planned communities. Belterra is newer with a Hill Country feel. Pricing ranges from the $400s to $800s.
Northwest Austin / Great Hills / Jester / Steiner Ranch: Suburban neighborhoods with Hill Country views, trails, and access to Lake Austin and Lake Travis. Steiner Ranch is one of Austin's premier master-planned communities. Pricing runs from the $500s to $1 million+. Good access to 183, 360, and 2222 corridors.
Round Rock / Cedar Park / Pflugerville: Technically separate cities but part of the Austin metro. More affordable than Austin proper, with strong school districts (Round Rock ISD, Leander ISD). Medians range from $350,000 to $450,000. These are where first-time buyers in the Austin area often find the most value.
Georgetown / Leander: Further north but still part of the Austin commuter zone. Georgetown has a historic downtown square and deep inventory. Leander has the Red Line commuter rail to downtown Austin. Both are covered in detail in my companion guides: Buying a Home in Georgetown and Buying a Home in Leander.
Property Taxes: The Austin Surprise
Austin sits in Travis County, where the effective property tax rate runs approximately 1.5% to 2.1% of assessed value, depending on which taxing entities cover your specific property. Some Austin addresses fall in Williamson County (north Austin) or Hays County (south Austin), which have their own rates.
On a $500,000 home in Travis County, expect roughly $7,500 to $10,500 per year in property taxes, or $625 to $875 per month added to your mortgage payment.
Travis County offers a 20% homestead exemption on the county portion, the maximum allowed by law. The statewide school district homestead exemption is $100,000 (rising to $140,000 under SB 4/Proposition 13 for 2026), which is the most valuable component since school taxes typically represent 50-65% of your total bill.
The 10% annual appraisal cap for homestead properties limits how fast your assessed value can increase year over year, which provides stability even in years when market values rise.
Veterans with VA disability ratings qualify for additional exemptions. A 100% disabled veteran pays zero property taxes on their homestead in Texas, per Texas Tax Code Section 11.131.
One thing that catches relocating buyers off guard: Austin's property taxes are higher than most cities they're comparing. A buyer moving from California, where effective rates average around 0.7%, will see their monthly property tax escrow roughly double on a similar-priced home. As part of my pre-qualification process, I build the full tax estimate into every buyer's monthly payment so the number reflects reality, not just principal and interest.
Builder Incentives in the Austin Metro
New construction in Austin's suburbs is highly competitive in 2026. Builders in communities across Round Rock, Cedar Park, Leander, Georgetown, Pflugerville, and Hutto are offering aggressive incentives to attract qualified buyers.
Common incentives include rate buydowns (some builders are offering first-year rates as low as 2.99-4.99% through their preferred lenders), closing cost credits of $10,000 to $20,000+, and design center upgrade packages.
Standing inventory (move-in ready homes that have already been built) typically comes with the strongest incentive packages because the builder is motivated to move that inventory.
This is one area where working with a wholesale broker makes a measurable difference. I can compare the builder's preferred lender financing against what I can offer through the wholesale channel, where I shop over 100 lenders with no corporate overlays. Sometimes the builder's deal is genuinely better. Sometimes the rate buydown looks attractive but the base rate, fees, or closing costs are inflated to offset it. I run both scenarios so you can make a real comparison.
Down Payment Assistance in Austin
Texas statewide programs are available to Austin buyers, and not every lender participates in every program. As a broker with access to wholesale lenders who offer these programs, I can match you with the right combination for your situation.
TSAHC Home Sweet Texas Home: Below-market interest rates and down payment assistance of up to 5% of the loan amount for buyers meeting income requirements. Available for FHA, VA, and conventional loans through approved lenders. You do not have to be a first-time homebuyer to qualify.
TDHCA My First Texas Home: Up to 5% in down payment and closing cost assistance with a 30-year fixed rate. Also offers the Mortgage Credit Certificate (MCC), which provides a federal tax credit of up to $2,000 per year on mortgage interest paid. Available for FHA, VA, USDA, and conventional loans.
My Choice Texas Home: Down payment assistance and 30-year fixed rates available to all homebuyers, not just first-time buyers.
TSAHC Homes for Texas Heroes: If you're a teacher, first responder, police officer, correctional officer, or veteran, this program offers the same DPA benefits as Home Sweet Texas with an additional perk: the MCC is free when combined with down payment assistance.
City of Austin DPA programs: Austin has periodically offered local down payment assistance through various city-funded programs. Availability and funding change, so check current status at the time of application.
Ready to buy in Austin? I'm Ben Eddy with Colt Lending, a wholesale mortgage broker who shops over 100 lenders to find you the best rate and program. I'll run every loan scenario, include Texas property taxes and insurance in the real numbers, and show you a monthly payment you can actually live with. Schedule a call or apply online and let's get started.
