78725
Austin, Texas
Austin 78725 needs watching.
The 78725 ZIP code in Austin, Texas has a median sale price of $254K, down -7.4% year-over-year. Homes spend an average of 62 days on market, with 23% of homes selling above list price.
Folio's PropIQ™ score of 60 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78725.
The 78725 market has entered a correction phase, with the median sale price settling at $253,690 after declining 7.4% year-over-year. Properties are averaging 61.5 days on market, a timeline that reflects softening demand compared to Austin's pandemic-era velocity. Only 23% of homes are trading above list price, signaling that seller pricing power has diminished substantially and buyers now hold negotiating leverage in most transactions.
These conditions favor cash-flowing buy-and-hold investors who can absorb the 7.4% paper loss while targeting below-ask deals, as 77% of homes close at or below list price. First-time buyers gain material advantage with extended inspection periods and repair negotiations that weren't possible eighteen months ago. Sellers facing urgent timelines should avoid this window, as the 61.5-day absorption rate plus negotiation periods push most transactions beyond 75 days to close.
The PropIQ score of 60 reflects transitional risk rather than capitulation, suggesting prices may drift sideways through Q2 2026 before stabilizing. Watch for days-on-market compression below 55 days as the leading indicator of recovery, while sustained readings above 65 would confirm further downside. The 23% above-list metric needs to reach 35% before momentum buyers re-enter this price band with conviction.
What is the median home price in 78725 Austin?
The median sale price in 78725 is $254K, down -7.4% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78725?
Homes in 78725 Austin spend an average of 62 days on market before going under contract.
Is Austin 78725 a good place to invest in real estate?
Folio's PropIQ™ score for 78725 is 60/100 — a Caution signal. 23% of homes sold above asking.
What does a PropIQ™ score of 60 mean for 78725?
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 60 = Caution in 78725 Austin, Texas.