78746
Austin, Texas

ZIP code 78746 shows clear signs of market correction, with the median sale price reaching $1,658,750 while declining 6.4% year-over-year as of February 2026. Properties are averaging 108 days on market, indicating substantially slower absorption than peak periods. Only 6% of homes are selling above list price, confirming that seller pricing power has diminished significantly. The luxury segment that dominates this West Austin corridor is experiencing the typical lag effect seen when interest rate changes impact the upper price tiers.

This environment favors patient buyers with secure financing and negotiating leverage given the extended days-on-market figure. The 6% above-list metric means 94% of transactions close at or below asking price, creating room for offer strategies below list. Sellers with genuine urgency and realistic pricing expectations can still transact, but those anchored to 2021-2022 valuations will continue accumulating market time. Investors seeking cash-flowing rentals should remain cautious given the entry price point and negative price momentum.

The PropIQ score of 55 signals continued caution through the next quarter, suggesting the 6.4% decline may not have reached bottom. Key indicators to monitor include whether days-on-market extends beyond 120 and if the above-list percentage drops below 5%, which would confirm further price discovery ahead. Stabilization requires DOM compression and above-list transactions returning to 15-20% range, metrics not yet evident in current data.