Austin, TX 78737 Real Estate Market Report

ZIP Code: 78737
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: 78737) is characterized by a median sold price of $825,000, reflecting a significant adjustment from previous peaks. The market has decreased 8% since 2022, indicating a shift in buyer sentiment and market dynamics. This decline in sold prices suggests that sellers may need to recalibrate their expectations in light of current market conditions.

Transaction activity appears to be moderated, with median days on market extending to 258 days, signaling slower sales velocity and a potential oversupply in the market. The elevated inventory levels relative to sales activity indicate that buyers currently have more options, which may further influence pricing strategies and negotiation outcomes. The overall market temperature is considered cold, reflecting the current buyer-favorable conditions and the need for sellers to be more flexible in their pricing.

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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 78737 area at approximately 6.1% are slightly higher than the 2026 forecasted average of 5.6% to 5.9%, suggesting owners who originated loans earlier in 2026 locked in a marginally better rate.

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 $825,000 suggests a significant adjustment in market value, reflecting a down trend since 2022.

2. With median days on market at 258, the market is experiencing slower sales velocity, indicating potential pricing friction for sellers.

3. The median listing price of $895,000 shows a notable gap compared to the sold price, suggesting that sellers may need to adjust expectations to attract buyers.

4. The market temperature is classified as cold, indicating a shift in favor of buyers amid elevated inventory levels.

5. The median market rent of $3,490 remains high, yet the down trend in rent year-over-year may indicate a cooling rental market.

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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.