78656
Austin, Texas
Austin 78656 needs watching.
The 78656 ZIP code in Austin, Texas has a median sale price of $232K, down -9.8% year-over-year. Homes spend an average of 92 days on market, with 15% of homes selling above list price.
Folio's PropIQ™ score of 51 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78656.
ZIP code 78656 shows clear buyer leverage with a median sale price of $231,945, down 9.8% year-over-year, while homes average 92 days on market—well above the typical 30-45 day range in balanced conditions. Only 15% of transactions close above list price, indicating sellers are accepting below-asking offers in most cases. This combination of negative price momentum and extended marketing time reflects oversupply relative to current demand at prevailing price points.
Price-sensitive first-time buyers gain maximum advantage in this environment, as the 9.8% annual decline delivers immediate equity compared to 2025 purchase prices. The 92-day average DOM provides negotiation runway to conduct thorough inspections and secure favorable financing terms. Buy-and-hold investors face headwinds with short-term depreciation risk, though the sub-$232K entry point offers cashflow potential if rental yields exceed 6-7% annually to offset near-term price compression.
The PropIQ score of 51 signals continued caution, suggesting stabilization remains months away rather than weeks. Price discovery continues as the 15% above-list-price rate indicates limited bidding competition. Buyers should monitor month-over-month inventory levels and DOM trends through Q2 2026; sustained readings above 80 days typically precede further 3-5% price adjustments before market clearing occurs.
What is the median home price in 78656 Austin?
The median sale price in 78656 is $232K, down -9.8% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78656?
Homes in 78656 Austin spend an average of 92 days on market before going under contract.
Is Austin 78656 a good place to invest in real estate?
Folio's PropIQ™ score for 78656 is 51/100 — a Caution signal. 15% of homes sold above asking.
What does a PropIQ™ score of 51 mean for 78656?
PropIQ™ is Folio's proprietary market score combining price momentum, days-on-market velocity, inventory absorption, and investment signals into a 0–100 number. Score of 51 = Caution in 78656 Austin, Texas.