78577
Mcallen, Texas

The McAllen ZIP code 78577 market shows significant cooling with a median sale price of $199,000, down 15.1% year-over-year as of February 2026. Homes are sitting an average of 98 days on market, well above the typical 30-45 day range seen in balanced conditions. Only 12% of properties are selling above list price, indicating buyers hold negotiating leverage and sellers face pressure to price competitively in this environment.

This market favors cash buyers and patient investors willing to negotiate, as the 98-day average DOM suggests sellers are more likely to accept below-asking offers after extended listing periods. First-time buyers with financing approval can capitalize on the 15.1% price decline while facing minimal bidding competition, given that 88% of sales close at or below list price. Sellers face challenging conditions and should expect longer timelines and potential concessions unless pricing aggressively below recent comparables.

The PropIQ score of 51 signals continued caution, suggesting the downward price trajectory may persist in coming months as inventory absorption remains slow at current DOM levels. The double-digit price decline combined with extended market time indicates demand has not stabilized relative to available supply. Buyers should monitor whether DOM begins contracting below 90 days and the above-list percentage rises above 15-20%, which would signal a floor is forming at the $199,000 median level.