78721
Austin, Texas
Austin 78721 needs watching.
The 78721 ZIP code in Austin, Texas has a median sale price of $426K, down -15.6% year-over-year. Homes spend an average of 118 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 78721.
The 78721 market has shifted decisively in favor of buyers, with median sale prices falling 15.6% year-over-year to $426,000. Properties now sit an average of 117.5 days before selling, nearly four months of market exposure that reflects substantially weakened demand. Just 4% of homes are commanding above-list prices, a sharp reversal from Austin's recent seller-dominated conditions. This pricing pressure indicates inventory levels have finally caught up with buyer activity in this central Austin ZIP code.
Value-focused buyers gain maximum leverage in this environment, particularly those willing to negotiate on properties approaching 120+ days on market. First-time homebuyers previously priced out during Austin's appreciation cycle can now secure properties at 2024 pricing levels with minimal competition. Sellers face considerable headwinds and should expect extended marketing periods and price concessions, making this an unfavorable exit point unless relocation or financial circumstances force a sale. Investors seeking cash flow over appreciation may find receptive seller negotiations.
The PropIQ score of 45 signals continued downward pressure with stabilization not yet established in the data. The 117.5-day absorption rate suggests another 8-12% correction remains possible before reaching equilibrium with historical Austin norms. Monitoring monthly sold volume and days-on-market trends through Q2 2026 will indicate whether $400,000 becomes the new pricing floor or if institutional buying emerges to establish support at current levels.
What is the median home price in 78721 Austin?
The median sale price in 78721 is $426K, down -15.6% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78721?
Homes in 78721 Austin spend an average of 118 days on market before going under contract.
Is Austin 78721 a good place to invest in real estate?
Folio's PropIQ™ score for 78721 is 45/100 — a Caution signal. 4% of homes sold above asking.
What does a PropIQ™ score of 45 mean for 78721?
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 78721 Austin, Texas.