78704
Austin, Texas
Austin 78704 needs watching.
The 78704 ZIP code in Austin, Texas has a median sale price of $850K, down -0.4% year-over-year. Homes spend an average of 125 days on market, with 7% of homes selling above list price.
Folio's PropIQ™ score of 55 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78704.
# 78704 Austin, TX Market Report
The 78704 market shows clear signs of deceleration with a median sale price of $850,000, down 0.4% year-over-year, marking a shift from Austin's pandemic-era appreciation. Homes are averaging 125 days on market, significantly elevated from historical norms and indicating weakened buyer urgency. Only 7% of properties are selling above list price, a sharp contrast to the competitive bidding environment that previously characterized this South Austin ZIP code.
This environment favors methodical buyers with financing contingencies and inspection periods, as the 125-day average DOM provides substantial negotiation leverage that didn't exist 18-24 months ago. Sellers with equity cushions who purchased before 2021 can still exit profitably at $850,000, but recent buyers face compressed margins. Investors should focus on cash-flowing rentals rather than appreciation plays, given the flat price trajectory and the 55/100 PropIQ caution signal indicating elevated risk.
The PropIQ score of 55 suggests continued sideways movement rather than immediate recovery, with inventory absorption remaining the critical variable to monitor. If days on market extend beyond 150 and the percentage of above-list sales drops below 5%, further price corrections of 3-5% become probable within six months. Interest rate movements and Austin's employment growth in Q2 2026 will determine whether this stabilization holds or accelerates downward.
What is the median home price in 78704 Austin?
The median sale price in 78704 is $850K, down -0.4% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78704?
Homes in 78704 Austin spend an average of 125 days on market before going under contract.
Is Austin 78704 a good place to invest in real estate?
Folio's PropIQ™ score for 78704 is 55/100 — a Caution signal. 7% of homes sold above asking.
What does a PropIQ™ score of 55 mean for 78704?
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 55 = Caution in 78704 Austin, Texas.