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 Austin, TX (ZIP: 78704) real estate market is characterized by a median sold price of $1,125,000, reflecting a period of price softening and a down trend in market activity. The neighborhood has decreased 8% since 2022, indicating a shift in buyer sentiment and market dynamics. The current economic landscape, marked by elevated interest rates and declining rental demand, has contributed to a more cautious buyer base, leading to slower overall transaction volumes and extended days on market.

The market is experiencing elevated inventory levels, with median days on market stretching to 266 days. This prolonged duration suggests a slower sales velocity, as buyers remain hesitant amid rising interest rate pressures. The median listing price stands at $1,049,500, which, while slightly below the sold price, indicates potential pricing friction as sellers adjust expectations in response to the current market conditions. Overall, the market temperature is classified as cold, reflecting the challenges faced by sellers in achieving timely sales in this environment.

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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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Property Taxes

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Liquidity & Velocity

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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 Austin TX at 5.875% are 0.765% lower than the recent 2026 average rate of 6.64% seen by property owners in this market.

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 $1,125,000 indicates a significant adjustment in buyer expectations amid a down trend in pricing.

2. With a median days on market of 266, properties are experiencing slower sales velocity, suggesting weak buyer engagement.

3. The median listing price of $1,049,500 shows a notable gap from sold prices, indicating potential pricing friction as sellers recalibrate their expectations.

4. The market temperature is currently cold, reflecting a challenging environment for sellers and a cautious approach from buyers.

5. Elevated interest rate pressure is impacting buyer sentiment, contributing to a down trend in both sales activity and rental demand.

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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.