78703
Austin, Texas

The 78703 market shows contradictory signals as of February 2026, with a median sale price reaching $1,500,000 and an aggressive 25.7% year-over-year appreciation. However, homes are averaging 82 days on market, substantially longer than Austin's typical hot-market velocity. Only 9% of properties are selling above list price, indicating buyer resistance at current valuations despite the steep price trajectory. This combination of strong appreciation with weakening transactional momentum suggests the market is transitioning from explosive growth to price discovery.

Sellers who purchased before 2024 can capitalize on the 25.7% annual gain, though the 82-day marketing period requires realistic pricing strategies given that 91% of sales close at or below ask. Cash buyers and high-net-worth purchasers face less competition than in previous years, with the extended days-on-market providing negotiation leverage absent during tighter inventory conditions. Speculative investors should exercise caution, as the PropIQ score of 65 signals elevated risk relative to entry price.

The 65 PropIQ rating indicates underlying market stress despite headline price growth, likely reflecting affordability constraints or demand saturation at the $1.5M price point. Monitor absorption rates and inventory accumulation through Q2 2026; if days-on-market extends beyond 90 days while appreciation remains elevated, expect price corrections in H2. The gap between strong year-over-year gains and weak transactional metrics typically precedes either price stabilization or 10-15% pullbacks within two quarters.