Austin, TX 78731 Real Estate Market Report

ZIP Code: 78731
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: 78731) has experienced a notable shift, with the median sold price recorded at $1,258,717. This represents a significant decrease in market value, aligning with the broader trend of a down market, as evidenced by the median listing price of $999,912, indicating a substantial gap between seller expectations and actual transaction values. The market has decreased 8% since 2022, highlighting the cooling trend following the pandemic boom.

Transaction activity appears to be moderating, with median days on market extending to 247 days, suggesting slower sales velocity and a cooling buyer interest. Elevated inventory levels are evident, with excess supply relative to sales activity contributing to a buyer-friendly environment. This shift may allow for increased negotiation power for buyers, as the market adjusts to the current economic conditions.

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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

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 Austin, TX, average around 6.19% to 6.35%, which is slightly higher than the general Texas average of 6.19% for loans originated 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 $1,258,717 reflects a significant gap from the median listing price of $999,912, indicating potential pricing friction in the market.

2. With median days on market at 247, the market is experiencing slower sales velocity, suggesting a shift in buyer engagement.

3. The market is classified as cold, with a down trend in prices, indicating a cooling phase in the real estate landscape.

4. Rental rates are also experiencing a down trend, with the median market rent at $2,440, suggesting a softening rental market due to increased supply.

5. Current interest rate pressure is assessed as moderate, with mortgage rates averaging between 6.19% to 6.35%, which may influence buyer behavior moving forward.

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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.