78705
Austin, Texas
Austin 78705 needs watching.
The 78705 ZIP code in Austin, Texas has a median sale price of $324K, down -10.5% year-over-year. Homes spend an average of 111 days on market, with 4% of homes selling above list price.
Folio's PropIQ™ score of 45 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78705.
The 78705 market has shifted decisively in favor of buyers, with the median sale price declining 10.5% year-over-year to $324,000 as of February 2026. Inventory absorption has slowed substantially, evidenced by homes averaging 111 days on market—well above the balanced-market threshold of 60 days. Only 4% of properties are selling above list price, confirming sellers have lost pricing power and are now competing for a diminished buyer pool rather than commanding bidding wars.
This environment favors cash-position buyers who can negotiate below asking price and tolerate extended closing timelines without rate-lock pressure. Investors seeking rental income will find motivated sellers willing to negotiate on the $324,000 median, though the PropIQ score of 45 suggests caution on appreciation potential. Current homeowners should postpone listing unless financially compelled to sell, as the 4% above-list figure indicates minimal competition among buyers and continued downward price pressure.
The PropIQ intelligence score of 45 signals deteriorating fundamentals that typically precede further price compression or extended stagnation. With days-on-market exceeding 110 and year-over-year declines approaching double digits, monitor monthly sales velocity and new listing volumes through Q2 2026 for stabilization signals. Absent material improvement in absorption rates, the current 10.5% annual decline may accelerate before finding a floor, particularly if inventory continues accumulating through spring selling season.
What is the median home price in 78705 Austin?
The median sale price in 78705 is $324K, down -10.5% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78705?
Homes in 78705 Austin spend an average of 111 days on market before going under contract.
Is Austin 78705 a good place to invest in real estate?
Folio's PropIQ™ score for 78705 is 45/100 — a Caution signal. 4% of homes sold above asking.
What does a PropIQ™ score of 45 mean for 78705?
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 45 = Caution in 78705 Austin, Texas.