Agree with the previous responses. The competition has absolutely gotten intense over the last few years, but whether that competition is irrational depends on 1), the economic factors in a particular area and 2), the potential of a particular investment within that market.
My partner and I moved from New York to Austin a couple of years ago, largely because we were more bullish on Texas and the Hill Country in general. New York and Austin both experience insane competition, but we believe Austin and Texas have healthier economic fundamentals than New York that will produce more wealth over the long term. The fact that competitions is intense has for sure made it harder to find deals, but doesn't necessarily indicate that the competition is irrational. To @Russell Brazil's point, this is a highly desirable area and that is driving up the demand.
The factors that contributed to Austin's growth (Texas' business- and real estate-friendly environment, large companies setting up shop here, huge influx of population largely from the coasts) are still in place and seem likely to continue for a while longer, which should provide some protection against any state-, nation- or worldwide correction that takes place.
