78616
Austin, Texas

The 78616 ZIP code shows clear buyer leverage with a median sale price of $359,000, down 8.7% year-over-year as of February 2026. Properties are averaging 112 days on market, well above the quick-turn threshold of 30-45 days that signals seller advantage. Most telling: zero homes are selling above list price, indicating sellers must price at or below market to generate interest in this cooling cycle.

This market strongly favors first-time buyers and patient investors seeking negotiating power. With 112 days on market and no bidding wars, buyers can conduct thorough due diligence, request repairs, and submit below-ask offers with reasonable success probability. Sellers face disadvantages unless they can absorb the 8.7% depreciation and wait through extended marketing periods. Those requiring quick exits will likely accept steeper discounts to compress the 112-day average timeline.

The PropIQ score of 41 signals caution and suggests further softening before stabilization. The negative price trajectory combined with extended days-on-market indicates inventory absorption issues that typically precede continued price adjustments. Buyers should monitor month-over-month inventory growth and watch whether days-on-market extends beyond 120, which would confirm deepening weakness. Sellers considering listing should expect the current pricing pressure to persist through at least the next quarter.