78756
Austin, Texas

ZIP code 78756 shows clear cooling with a median sale price of $730,000, down 4.8% year-over-year as of February 2026. Properties are averaging 99 days on market, nearly double the velocity seen during peak conditions. Only 8% of homes are commanding above-list offers, indicating sellers have lost pricing power. The market has shifted decisively from the supply constraints that characterized 2021-2022, with inventory absorption slowing significantly across this central Austin submarket.

These conditions favor patient buyers with financing already secured and flexibility on closing timelines. The 99-day marketing period creates negotiating leverage that didn't exist when DOM averaged 30-45 days. Investors seeking cash flow over appreciation should find more realistic seller expectations, particularly on properties that have sat beyond the 99-day average. Sellers facing liquidity needs or relocation deadlines are disadvantaged, as the 8% above-list figure suggests aggressive pricing will likely extend marketing time further.

The PropIQ score of 55 signals continued caution, suggesting the -4.8% decline may not represent a bottom. Markets typically stabilize when DOM drops below 75 and above-list transactions exceed 15%. Neither threshold is close in 78756. Watch for inventory accumulation in March-April, traditionally strong listing months that could pressure prices further if buyer demand remains at current levels. Any Fed rate adjustments in Q2 2026 will directly impact affordability calculations at the $730,000 price point.