78738
Austin, Texas

The 78738 market shows modest momentum with a median sale price of $861,808 and year-over-year appreciation of 7.7%, outpacing typical inflation adjustments. However, inventory sits longer at 105 average days on market, while only 8% of homes command above-list prices. This combination indicates demand exists at current pricing levels but lacks the urgency that characterized previous Austin market cycles. The spread between willing buyers and sellers has narrowed considerably from peak conditions.

These conditions favor patient buyers with secure financing who can wait out the 105-day average absorption period without timeline pressure. The 8% above-list ratio means negotiating room exists on 92% of transactions, creating leverage for purchasers willing to walk away. Sellers with equity accumulated before 2023 can still extract the 7.7% annual gain, but recent buyers expecting quick appreciation face a holding period. Investors seeking cash flow over speculation find better entry points than during the competitive 2021-2022 window.

The PropIQ score of 65 signals caution rather than alarm, suggesting sideways movement rather than correction. The 105-day marketing period will likely extend if mortgage rates climb or inventory increases beyond current levels. Watch the above-list percentage closely; any drop below 5% would indicate softening demand that could pressure the 7.7% appreciation rate. The score implies stabilization at elevated prices rather than continued aggressive growth through 2026.