Austin, TX 78704 Real Estate Market Report

ZIP Code: 78704
Report Date: February 2026
Market Temperature: COLD
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of February 2026, the 78704 market is characterized by a median sold price of $1,135,000, reflecting a significant decrease in market value. This decline suggests a market correction from previous peaks, with the area experiencing a down trend in pricing year-over-year. The current market dynamics indicate slower transaction volume and extended selling periods, with properties averaging 283 days on market.

The elevated inventory levels and longer selling times suggest a shift towards a more balanced market, albeit with signs of cold market temperature. While the broader economy remains stable, with low unemployment, the elevated interest rate pressure continues to impact buyer activity, contributing to the observed price declines and slower sales velocity. The median listing price of $895,000 indicates a notable gap between seller expectations and actual market performance, further complicating the landscape for potential buyers and investors.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Cold market indicates weak buyer demand relative to available inventory, typically characterized by declining or flat prices, extended days on market, and elevated inventory levels relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the Austin TX 78704 market around 5.98% are slightly lower than the early 2026 average of 6.19%, presenting a minor cost advantage for new financing.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The median sold price of $1,135,000 indicates a significant market adjustment, reflecting a decrease in property values.

2. Properties are experiencing a prolonged median days on market of 283, suggesting slower sales velocity and extended selling periods.

3. The market temperature is currently classified as cold, indicating a lack of urgency among buyers and a potential for price stabilization.

4. With a median listing price of $895,000, there is a notable pricing friction that may deter potential buyers, reflecting a gap between seller expectations and market realities.

5. The median market rent stands at $2,850, which, alongside the down trend in rents year-over-year, suggests a cautious rental market environment.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.