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Living in Texas
Austin's housing market isn't just competitive — it's historic. With 0.4 months of inventory in the metro area and only 665 new listings hitting the market in a given week, buyers are navigating one of the most challenging real estate environments this city has ever seen. If you're planning to buy here, going in prepared isn't just helpful — it's essential.
A balanced market typically carries about six months of inventory. Austin is sitting at 0.4 months. That gap tells you everything you need to know about where the leverage sits right now — and it's firmly with sellers.
The reasons for the inventory shortage are layered:
What this means for buyers is straightforward: your options will be limited, and you'll likely make more compromises than you anticipated. That's not a reason to wait — it's a reason to get clear on your priorities before you start looking.
Home sales in the Austin–Round Rock metro have increased by 23.9%, and prices have risen 19% year-over-year. To put numbers to it:
But here's the part that takes some buyers by surprise: the list price is often just a starting point. In one recent example, a client offered $156,000 — that's 45% — over asking price. We still didn't get the home.
Now, not every home will generate that kind of frenzy. But offers of 10–20% over asking price are common across most price points right now. And traditional comparable sales are increasingly hard to use for guidance, because the market is moving faster than the data. A home's price can jump $65,000 between the time it hits a buyer's inbox and when they schedule a showing that afternoon.
In a market this fast, a lot of the analysis comes down to one question: how much do you want this home? Buyer demand and the fear of missing out are driving offers more than comps right now — and that's a shift every buyer needs to mentally prepare for.
Many buyers turn to new construction as a way to sidestep competition, but that door has narrowed considerably. Builders are dealing with skyrocketing lumber and labor costs, and they're passing those costs directly to buyers. Here's what the new construction landscape looks like right now:
New construction is still worth exploring, but go in with realistic expectations. It's a different process than a standard resale purchase, and the advantage of a fixed price is no longer guaranteed.
Almost every home in Austin right now is receiving multiple offers. In some cases, buyers are competing against 99 other offers on a single property. That's not an exaggeration — it's happening.
Layered on top of that are offer deadlines, which add time pressure to an already stressful process. And those deadlines can shift. A seller may move a Sunday 5:00 PM deadline to Sunday 9:00 AM with little warning — which has happened to buyers in active searches. It's frustrating, but understanding that it can happen helps you stay mentally prepared.
To be competitive in this market, buyers are pulling together stronger offer packages that go well beyond price. Here's what winning offers typically include right now:
These aren't minor concessions. They represent real financial risk and commitment. Understanding each of them before you're in the middle of a multiple-offer situation is critical.
Given everything above, here's how to position yourself for the best chance of success:
Cities like Round Rock, Cedar Park, Pflugerville, Kyle, Buda, Leander, and Georgetown offer lower price points than the City of Austin, and while competition still exists, it's often less intense. Just know that if the market holds its current trajectory, that window won't stay open forever.
Floor plan, architectural style, community amenities — if you're holding firm on all of these simultaneously, you're shrinking an already small pool of options. Decide what's truly non-negotiable and be willing to compromise on the rest.
A standard pre-approval letter isn't enough in this market. A full credit approval means your financing has already been underwritten — so financing approval isn't a contingency in your offer. That's a meaningful advantage. If you're a cash buyer, have your proof of funds ready to attach to every offer.
Many sellers in Austin are buying their next home at the same time they're selling — which means they need time to move. If you can offer a post-closing leaseback of 30 to 60 days, that flexibility can be the difference between winning and losing. (Note: anything beyond 60 days can trigger lender classification of the property as an investment or second home, which has its own implications.)
Most buyers in Austin's current market submit three to ten offers before one is accepted. That's not failure — that's the process right now. The buyers who succeed are the ones who stay in the game, move quickly when the right home comes along, and don't let the losses derail them completely.
Buying in Austin right now is genuinely hard. The inventory is tight, the competition is real, and the financial commitments required to win can feel overwhelming. But buyers are winning every day — with the right preparation, the right team, and the right mindset. Know what you're walking into, build your strategy before you need it, and give yourself the best possible chance when the right home appears.
Expert in: Living in Texas
Austin real estate expert helping families find their perfect home in the Texas Hill Country.
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Angie Ufomata
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