78735
Austin, Texas
Austin 78735 needs watching.
The 78735 ZIP code in Austin, Texas has a median sale price of $791K, down -9.4% year-over-year. Homes spend an average of 68 days on market, with 6% of homes selling above list price.
Folio's PropIQ™ score of 55 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78735.
The 78735 market has shifted decisively toward buyers, with the median sale price dropping 9.4% year-over-year to $790,500 and homes averaging 68 days on market. Only 6% of properties are closing above list price, down from the double-digit percentages typical of Austin's competitive years. This deceleration represents one of the steeper corrections in the Austin metro area, reflecting both broader affordability constraints and localized inventory absorption challenges in this price tier.
Buyers with $750,000 to $850,000 budgets now have negotiating leverage absent since 2019, particularly those willing to extend offers at 68-day inventory levels rather than rushing decisions. Sellers facing job relocations or timeline pressures should expect 90-120 day marketing periods and potential list price reductions to secure contracts. Investors seeking cash flow will find limited opportunity at $790,500 entry points, but those targeting 18-24 month appreciation plays may find value if they can absorb near-term holding costs.
The PropIQ score of 55 signals continued price instability, suggesting another 3-6% downward pressure before stabilization. Days on market trending above 60 historically precedes either price capitulation or prolonged stagnation in Austin's luxury-adjacent segments. Monitor active listing counts and the percentage requiring price cuts—if that figure exceeds 40%, expect the median to test $750,000 by Q4 2026.
What is the median home price in 78735 Austin?
The median sale price in 78735 is $791K, down -9.4% year-over-year as of 2026-02-28.
How long do homes stay on the market in Austin 78735?
Homes in 78735 Austin spend an average of 68 days on market before going under contract.
Is Austin 78735 a good place to invest in real estate?
Folio's PropIQ™ score for 78735 is 55/100 — a Caution signal. 6% of homes sold above asking.
What does a PropIQ™ score of 55 mean for 78735?
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 55 = Caution in 78735 Austin, Texas.