78727
Austin, Texas

The 78727 ZIP code shows clear market deceleration with a median sale price of $457,500, down 9.6% year-over-year as of February 2026. Homes are sitting on market for an average 80.5 days, and only 3% of properties are selling above list price—a stark contrast to Austin's previous seller-dominated environment. This price correction and extended absorption period signals a fundamental shift from the aggressive bidding behavior that characterized this market in prior years.

These conditions strongly favor cash-position buyers and patient investors who can capitalize on reduced competition and increased negotiating leverage. With 97% of homes selling at or below list, buyers have pricing power rarely seen in this ZIP code over the past decade. Sellers face headwinds and should anticipate longer marketing periods and potential price concessions, particularly if they're selling discretionary properties rather than relocating under time constraints.

The PropIQ score of 45 out of 100 signals caution and suggests further downside risk or continued stagnation rather than imminent recovery. Key variables to monitor include inventory levels, mortgage rate movements, and whether days-on-market extends beyond 90 days—a threshold that typically triggers additional seller capitulation. This score indicates the market hasn't established a price floor, making timing critical for both entry and exit strategies through mid-2026.