78516
Mcallen, Texas
Mcallen 78516 needs watching.
The 78516 ZIP code in Mcallen, Texas has a median sale price of $205K, down -16.7% year-over-year. Homes spend an average of 80 days on market, with 13% of homes selling above list price.
Folio's PropIQ™ score of 51 signals Caution conditions. Elevated price drops and longer days on market indicate softening in 78516.
The McAllen 78516 market shows significant price compression, with the median sale price at $205,000 representing a 16.7% year-over-year decline. Homes are averaging 80 days on market, indicating slower absorption than peak periods. Only 13% of properties are closing above list price, signaling limited competition and weak buyer urgency. This correction suggests previous overvaluation or demand exhaustion in this specific ZIP code within the broader McAllen metro area.
Price-sensitive buyers hold clear negotiating leverage in these conditions, with the 87% of homes selling at or below list providing room for offer strategies below asking price. Cash investors seeking rental yield may find entry points attractive at current valuations, particularly if the 16.7% decline has overcorrected fundamentals. Sellers face headwinds and should expect extended marketing periods beyond the 80-day average unless priced aggressively below recent comparables.
The PropIQ score of 51 reflects elevated caution, suggesting continued price discovery and potential for further softening before stabilization. The combination of negative price momentum and modest days-on-market indicates neither capitulation nor recovery is imminent. Buyers should monitor month-over-month inventory levels and the percentage of homes selling above list; any movement above 20% would signal demand returning to this ZIP code.
What is the median home price in 78516 Mcallen?
The median sale price in 78516 is $205K, down -16.7% year-over-year as of 2026-02-28.
How long do homes stay on the market in Mcallen 78516?
Homes in 78516 Mcallen spend an average of 80 days on market before going under contract.
Is Mcallen 78516 a good place to invest in real estate?
Folio's PropIQ™ score for 78516 is 51/100 — a Caution signal. 13% of homes sold above asking.
What does a PropIQ™ score of 51 mean for 78516?
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 51 = Caution in 78516 Mcallen, Texas.