1. Austin’s Market Shift: From Frenzy to Buyer’s Market

Just a couple of years ago, Austin’s housing scene was a feeding frenzy, with homes selling faster than breakfast tacos at a Sunday brunch. Today, the tide is turning. Austin’s post-pandemic real estate market is finally tilting in favor of buyers – inventory has surged, prices have pulled back from their peak, and affordability is (slowly) improving. In fact, the city now has around 7 months of housing supply (up from ~4 months before), tipping it into buyer’s-market territory, whereas nationally there’s about 5 months of inventory. Active listings are about 20% higher than last year – and a whopping 50% above pre-2020 levels – giving buyers far more choices than during the boom.

What does this mean for someone relocating to Austin? More homes on the market and longer listing times = extra breathing room to shop around. Bidding wars are no longer a given on every decent house. Zillow and Realtor.com even crowned Austin a buyer’s market recently, a radical change from the pandemic era madness. Top-producing agent Dillar Schwartz notes that this balanced market is a welcome change: buyers can actually negotiate again (imagine that!) and take time to find the right home without snapping to a decision in five minutes. The Austin housing market hasn’t totally crashed – homes still hold value – but as Dillar advises, strategy and local expertise now make all the difference in getting a great deal in this cooler climate.

2. Affordability & Financing: The New Reality in Austin

Affordability has long been Austin’s elephant in the room (wearing a “Keep Austin Weird” shirt, of course). Home prices skyrocketed over the past several years, but 2025 is seeing a slight cost-of-living correction. The median home listing price in the Austin area is now around $499,000, roughly 4.5% lower than a year ago. Prices are still higher than the U.S. average, but after a 50% surge in five years, any cooldown is good news for newcomers. For relocation buyers coming from pricier markets like California or New York, Austin might even seem like a bargain – one reason so many flocked to Texas for a lower cost of living and no state income tax. (Do keep in mind, Texas’ property taxes are heftier to compensate – something Dillar makes sure her clients budget for upfront.)

The mortgage landscape has changed, too. Those 3% interest rates from 2021 are the stuff of legend now; rates hover around 6–7% for a 30-year fixed in 2025. Higher rates have tempered what buyers can afford, but the silver lining is that they’ve also cooled the once-crazy demand. Plus, lending standards remain solid, and creative financing options are emerging. For instance, many home builders and even some sellers are offering rate buydowns or closing cost incentives to help ease the monthly payment pain. Dillar Schwartz – known for her integrity and market expertise – stays on top of these programs and even jokes that “date the rate, marry the house” might just become Austin’s new mantra (refinancing later if rates drop). The bottom line: buying a home in Austin is still a significant investment, but with prices leveling off and expert guidance from a pro like Dillar, it’s more attainable than it was a short time ago.

3. New Construction Boom & Hot Neighborhoods to Watch

If you’re relocating to Austin, you’ll notice cranes on the horizon and brand-new neighborhoods popping up like wildflowers after a Hill Country rain. Nearly 1 in 4 homes for sale in Austin today is a new construction – far higher than the national average. Builders have been busy catching up to the past years’ demand, and now new homes are actually often priced lower than comparable older homes (about 7% cheaper on average in Austin) – a rare twist that gives buyers modern features for less. This building boom means relocation buyers can choose from a range of shiny new houses and condos, often in master-planned communities with amenities. Better yet, builders are bending over backwards to attract buyers, offering perks from upgraded appliances to financial incentives. (Thinking about a brand new smart home with a lower interest rate courtesy of the builder? Yes, please.)

So, where are the hot spots in Austin’s housing market now? Surprisingly, some suburban areas are stealing the spotlight from downtown. For example, Southwest Austin’s Circle C Ranch (ZIP 78739) was the metro’s hottest ZIP code in early 2025, with a median price around $829k (slightly down 3.8% year-over-year) and homes selling in just 33 days – nearly three weeks faster than the U.S. average. Family-friendly neighborhoods with good schools (like Circle C or Steiner Ranch) and communities near the tech job hubs (think North Austin near the Domain, or East Austin by the Tesla factory) are in high demand. Meanwhile, up-and-coming suburbs like Round Rock, Cedar Park, and Dripping Springs continue to grow rapidly, giving buyers more options if city prices stretch the budget. Dillar Schwartz stays on top of these trends – whether it’s a hip east side bungalow or a spacious home in the ‘burbs, she helps newcomers figure out which Austin neighborhood truly fits their lifestyle and commute. Her pro tip: consider your priorities (schools, space, nightlife, etc.) and explore a few different areas before zeroing in. With so much new development, there’s bound to be a perfect pocket of Austin for everyone.

Ready to make your move to Austin? The Austin housing market in 2025 offers exciting opportunities, but also new challenges – and having a trusted expert on your side makes all the difference. Dillar Schwartz, a top-producing and trustworthy Austin real estate professional, has helped countless families and individuals navigate these very trends. If you’re moving to Austin and want a smooth, informed home search (with a dash of wit to keep things fun), reach out to Dillar today. She’ll not only help you find the right house at the right price, but also make you feel right at home in Austin. Don’t navigate this evolving Austin real estate landscape alone – contact Dillar Schwartz and let a true expert guide you to your Texas happily-ever-after.