Austin, TX 78723 Real Estate Market Report

ZIP Code: 78723
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 real estate market in Austin, TX (ZIP: 78723) is characterized by a median sold price of $577,500, reflecting a down trend in pricing. This indicates a shift in market dynamics, with prices decreasing from previous highs. The market has seen a cold temperature, suggesting a slowdown in transaction activity and a potential adjustment period for both buyers and sellers. The median days on market stands at 237, indicating extended time frames for property sales, which may reflect buyer hesitance amid elevated interest rates.

The current market conditions suggest a normalization rather than a collapse, supported by the underlying tech-driven economy. However, affordability challenges persist due to moderately high interest rates, which may further influence buyer sentiment and market activity. The relationship between median listing price of $557,500 and median sold price indicates a pricing gap that may require adjustments from sellers to align with current buyer expectations. Overall, the market is experiencing elevated inventory levels relative to sales, pointing to a potential excess supply situation that could impact future pricing and sales velocity.

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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 the Austin TX market at approximately 5.90% are slightly lower than the average rates of 6.00% seen earlier in 2026.

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 $577,500 reflects a down trend in pricing, indicating a shift in buyer sentiment.

2. With a median days on market of 237, the market is experiencing slower sales velocity, suggesting extended time frames for property transactions.

3. The median listing price of $557,500 presents a pricing gap compared to the sold price, indicating potential pricing friction for sellers.

4. The market temperature is currently cold, suggesting a need for sellers to adjust expectations in light of current buyer behavior.

5. Elevated interest rate pressure is impacting affordability, contributing to the down trend in both sales prices and market activity.

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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.