According to research economist Luis Torres at the Texas Real Estate Research Center at Texas A&M University, the home-buying frenzy ongoing for months is finally over. The prices had skyrocketed with only meager supply, but things are coming back to a steadier pace.

"In Austin, the market has been cooling over time and prices plateaued for a while," Trinity Title of Texas posted on social media.

Prices for homes are dependent on the demand and supply of homes. It is expected that for the rest of 2021 as well as 2022, there will be strong demand for homes and improving inventories.

Torres said that the pandemic played a huge role in increasing the inclination of people towards homeownership so fast and thus reduced supply to such an extent. People were looking for more spacious houses now that they were working mainly from home, and thus wanted their living situations to improve.

"The strong activity within the housing market has reached a peak, so now the market is returning to a more normal level," Torres said. "To give an example, imagine you're driving at 120 miles per hour. You max out at this speed and then return to 70 or 80 miles per hour. You're still driving fast, but you're no longer at such a high speed."