78701
Austin, Texas

The 78701 market shows strong price appreciation with a median sale price reaching $752,500, up 17.1% year-over-year, significantly outpacing national averages. However, velocity has decelerated considerably, with properties averaging 97.5 days on market and only 3% of homes selling above list price. This combination of rising prices and extended marketing periods indicates demand weakening despite continued appreciation, a pattern typically seen in late-cycle expansion phases.

This environment favors patient buyers with negotiating leverage, as the 97-5-day DOM provides time for thorough due diligence and the 3% above-list metric suggests minimal bidding competition. Sellers who purchased before the recent appreciation cycle can still capture substantial equity gains from the 17.1% annual increase. Speculative investors face compression risk given the divergence between price growth and transaction velocity, which historically precedes margin deterioration.

The PropIQ score of 51 signals neutral-to-negative momentum, suggesting the 17.1% appreciation rate is unsustainable at current demand levels. Market participants should monitor whether DOM continues extending beyond 100 days, which would likely force price corrections or increased concessions. The gap between strong year-over-year gains and weak transaction indicators points to a normalizing market where double-digit appreciation gives way to single-digit growth or potential price declines within two quarters.