78722
Austin, Texas

The 78722 market has entered a significant correction phase, with the median sale price settling at $503,000 after declining 18.2% year-over-year through February 2026. Homes are averaging 110 days on market, triple the velocity seen during peak conditions, while only 16% of properties close above asking price. This represents a fundamental shift from seller advantage to a market where pricing discipline and patience determine outcomes, with buyers holding substantially more negotiating leverage than in prior years.

Price-sensitive buyers with flexible timelines are positioned to extract maximum value in these conditions, as the 110-day market time creates pressure on sellers who overpriced initially. Investors seeking cash flow over appreciation should focus on properties exceeding 90 days on market, where the 84% of homes selling at or below list suggests meaningful discounts are achievable. Sellers face difficulty unless priced 5-10% below recent comparables, as the 18.2% decline indicates continued downward pressure on valuations.

The PropIQ score of 60 signals caution rather than crisis, suggesting stabilization potential exists but hasn't materialized yet. The critical indicators to monitor are days-on-market trends and the ratio of above-list sales; if DOM extends beyond 120 days or above-list transactions fall below 12%, further price deterioration is likely. Conversely, DOM compression toward 90 days would indicate the correction is finding a floor, though current data suggests the market remains in price-discovery mode through mid-2026.