Is Now the Time to Buy a Condo in Austin’s Buyer’s Market?

Austin’s condo market has shifted decisively in favor of buyers. Inventory is higher than it has been in years, and listings are sitting longer than during the pandemic boom.

Sellers are now open to negotiations that were unthinkable just a few years ago. For buyers who spent years watching prices climb and bidding wars erupt, the current landscape feels like vindication. But opportunity and timing are different questions.

While leverage has returned to buyers, condo purchases carry unique complexities that matter more during market transitions. HOA finances, building reputation, and financing constraints can outweigh a good purchase price.

This post explains how Austin’s buyer’s market specifically affects condos and helps you determine whether now is a good time to buy.

Downtown Austin Real Estate Market Watch

In November 2025, the average home sales price in Downtown Austin was $700,500, a 11.3% decrease from the same period in 2024. However, Austin real estate trends shift frequently. Reach out to the Capital Downtown Realtors® team for expert help with buying or selling in Austin.

What Austin’s Buyer’s Market Means for Condo Buyers

A buyer’s market occurs when inventory outpaces demand. That gives buyers more negotiating power. In Austin, condos that sold in days now sit for weeks or months. Sellers who received multiple offers are now lowering prices and accepting more buyer requests.

That creates advantages beyond lower prices. You get more time for inspections, rather than rushing through them. Seller concessions are getting more common. Buildings that couldn’t attract buyers during hot markets now offer deals to stand out.

However, condos work differently from houses when markets change. With a house, you only evaluate one property. With a condo, you evaluate two things: your unit and the entire building’s finances. When markets slow down, that difference becomes more important.

How Condo Pricing Has Adjusted Across Austin

Prices haven’t dropped the same amount everywhere. Downtown high-rises with nice amenities show different patterns than smaller buildings in East Austin or South Congress. Some properties dropped 10-15% from their highest prices, while others remain close to 2022 levels.

The difference often depends on HOA fees and building savings. A condo priced at $425,000 with $650 in monthly fees competes differently from one priced at $450,000 with $350 in monthly fees.

Buildings with good savings and clear financial records retain their value better. Those with delayed repairs, lawsuits, or low savings face bigger price drops because buyers see future risks. When reviewing prices, check the building’s finances first, then compare listing prices.

Examining HOA Documents

Reviewing HOA documents is a key step in making a smart decision. The following are key points to consider:

• Reserve fund balance relative to annual budget (a healthy ratio is 70% or higher)
• Recent special assessments and reasons for them
• Pending or settled litigation involving the association
• Percentage of owner-occupied units versus rentals (lenders prefer a 50% owner-occupied minimum)
• Insurance deductibles, which shifted dramatically after 2021 for many Texas buildings

Meeting notes show what financial statements don’t. Look for discussions about roof repairs, plumbing problems, or insurance changes. These tell you if current fees cover everything or if increases are coming.

Mortgage Rates and Financing Realities

Mortgage rates have settled around the mid-6% range following recent fluctuations. While still higher than pandemic lows, stable rates let you plan with confidence.

For condos, obtaining a loan involves additional steps. Lenders review the building’s certification, the number of owners, and any legal issues before approving loans.

Getting pre-approved based on your income and credit doesn’t guarantee financing for every condo. Some buildings don’t meet Fannie Mae or Freddie Mac rules, which limits you to other lenders with stricter terms.

Before making an offer, ask your lender to review the building’s status. That prevents surprises after you’re under contract. Buildings with multiple investors, ongoing lawsuits, or weak insurance may require a 25-30% down payment or higher interest rates.

Seller help can make financing easier. In Austin’s current market, asking for 2-3% toward closing costs or a rate buydown is normal. These reduce your upfront cash needs or lower monthly payments.

When Buying Makes Sense in Austin’s Buyer’s Market

The current market works well for buyers with these situations:

• Planning to Stay Long-Term: If you’ll stay five years or more, short-term price changes matter less. Buildings in walkable areas near jobs tend to recover faster and appreciate more consistently.
• Stable Income and Savings: Condos need less maintenance than houses, but HOA fees, special assessments, and building expenses require financial flexibility. Having six months of housing costs saved protects you from surprises.
• Value Location Over Space: Buyers who value walkability and building amenities over square footage find better deals now. Downtown condos offer closeness to work, restaurants, and entertainment that suburban homes can’t match.
• Flexible Timing: Without competing offers, you can be picky about building quality and negotiate better terms. Rushing leads to missed problems.

When Waiting Makes More Sense

Some situations suggest waiting or reconsidering a condo:

• Short-Term Plans: If you plan to sell within three years, buying and selling costs pose a significant risk. Condos typically take longer to sell than houses and attract fewer buyers.
• Buildings with Problems: Low savings (below 50% of annual budget), visible maintenance issues, or many renters indicate future financial problems. These buildings may charge special fees or be hard to sell later.
• Limited Rental Options: Some HOAs restrict rentals, requiring you to own your unit for a set period before renting. If your plans might change and you need to rent, check the rental rules first.
• Tight Budget: HOA fees can increase by 3-5% annually, and special assessments can occur without notice. If your budget is tight, condo ownership carries more risk than fixed-rate housing.

Questions Buyers Often Ask About Austin’s Condo Market

Are condo prices still declining?

Some buildings continue adjusting while others have stopped. Buildings with strong HOA finances and good locations tend to show steadier price trends. Those with high fees, weak savings, or old amenities face ongoing pressure.

How should buyers evaluate HOA fees?

Focus on value, not just the dollar amount. A $600 monthly fee that covers insurance, maintenance, amenities, and good savings may be a better value. Calculate your total monthly housing cost, then verify the association can operate without surprise fees.

What concessions can buyers negotiate beyond price?

Closing cost contributions, rate buydowns, home warranties, and inspection repair credits are all negotiable. Some sellers cover pending special assessments or prepay HOA dues. Creative terms often matter more than purchase price reductions in improving affordability.

Do condos perform differently from houses during market shifts?

Condos typically respond more quickly to changes in demand because their buyer pool is smaller and more sensitive to affordability metrics. Buildings with strong fundamentals recover quickly, while those with issues lag for years.

We Know Austin Condos

Austin’s buyer’s market rewards buyers who understand building-level dynamics, not just listing prices. Success means evaluating HOA financials, financing requirements, and long-term building health.

At Capital Downtown Realtors®, we know how to evaluate condos and their communities. We help buyers navigate the details that determine whether a purchase aligns with your timeline and goals.

Contact us today to begin your Austin condo search with professionals who have grown alongside the city.