North Austin Entry-Level Homes: Affordability Check

What does it take to buy an entry-level home in North Austin today? The median price for the bottom quartile of sales reached $381,999 across 65 closed transactions in September. With current mortgage rates at 7.32% according to Freddie Mac data from the week of October 22, 2026, monthly payments have shifted significantly compared to previous years. ALEX Intelligence applied a payment-to-price affordability model assuming a 20% down payment on a median entry-level home. At the current rate, the principal and interest payment sits at $2,099 per month. A 3-2-1 buydown could lower that first-year payment to $1,516, saving buyers $583 monthly, though it would cost approximately $14,208 upfront. Alternatively, a 2-1 buydown offers a one-year reduction for about $7,212. The market shows resilience with the median price rising 3.5% from August and 3.5% compared to September 2025. Homes are selling faster now, with days on market dropping 20% from last month and 36% from a year ago. However, 78.5% of homes still sold below their original list price, indicating that buyers retain some negotiating leverage despite the lower inventory. For entry-level seekers, the data suggests that while prices are up, the speed of sales is increasing. Understanding the cost of buydowns and current rate impacts is essential for determining true affordability in this segment. Want a closer look? Reply or call George at 713.918.9951 and we'll set up a showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog