Austin's real estate market continues to cool, but are your property taxes going up?

For some, taxable property values ​​are still rising, and thousands of Central Texas residents are now considering whether to protest their assessments.

After a hot housing market in Austin, a new report from Zillow shows us how quickly it's cooling down. The average home value in the Austin area is down 12% since the peak we saw in June.

But for some, taxable property values ​​are still rising, and thousands of Central Texas residents are now considering whether to protest their assessments.

Homes are flying off the market, selling for hundreds of thousands over asking - Austin was a seller's dream during the pandemic.

"Buyers in pandemic-era hotspots like Austin and Phoenix are seeing their markets return to normal more quickly," said Orpa Dibongoi, senior economist at Zillow.

DiBongoy said that with the increase in demand that Austin saw during the pandemic, the lack of awareness was through the roof. But when things cool down, Austin is in a good place.

"The good news for buyers there is that they're going to face less competition, but they also have more inventory, more homes to choose from compared to markets on the other side of the country that are facing a huge housing shortage," Dibongoy said.

Melanie and Caleb Sexton built their home in Round Rock in 2018.

"We wanted to buy a house. And of all the places to really move, Austin was a great location to move to," said Caleb Sexton.

When they built their house, it was worth about $280,000. Four years later, their home was only valued at $407,649.

Their neighborhood in Round Rock is a good mix of new buildings, but with several different styles, making each one unique.

They say they've seen their appraisals go up this year knowing that homes similar to theirs in the neighborhood are going for tens of thousands less than the values ​​they're getting. So now, the sextons are thinking of protesting their assessment.

"I think this is something that should be taken into account because it does not reflect what is happening in the real estate market. And again, we don't want to see our taxes go up," said Melanie Sexton.

DiBongoy said higher values ​​mean property owners are standing on home equity, and the Austin area is seeing an increase in inventory.

Zillow reports that Austin had more than 7,700 units available in March 2020. Last month there were more than 10,000 units.

"Long gone are the days when you could just put a sign in your front yard and expect a bidding war to set your price. It will not happen. So working with an agent will be very helpful." Dibongoy said.

Although the market is slowing, Dibongoi said local buyers and sellers are in a sweet spot compared to the rest of the country.