Austin, TX 78738 Real Estate Market Report

ZIP Code: 78738
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: 78738) is characterized by a median sold price of $970,329, reflecting a notable shift in market dynamics. The neighborhood has decreased 8% since 2022, indicating a softening trend in property values. This decline in sold prices, coupled with elevated inventory levels, suggests a market that is increasingly favoring buyers, with sellers needing to adjust their expectations accordingly.

Transaction activity appears to be moderate, with median days on market reaching 256 days, signaling a slower sales velocity. The current market temperature is classified as cold, further emphasizing the challenges sellers face in achieving their listing prices. With median listing prices at $875,000, the gap between listing and sold prices may indicate pricing friction, as sellers are compelled to reduce prices to attract buyers in this competitive landscape.

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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 area around 6.21% are slightly higher than the national average of 6.09% reported the week of February 12, 2026, indicating property owners locked in a favorable rate if their origination was 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 $970,329 reflects a decrease of 8% since 2022, indicating a softening market.

2. With median days on market at 256, the market is experiencing slower sales velocity and extended timeframes for property transactions.

3. The median listing price stands at $875,000, which suggests a significant gap relative to sold prices, indicating potential pricing friction for sellers.

4. Current market conditions are classified as cold, suggesting a challenging environment for sellers to achieve desired sale prices.

5. Elevated inventory levels are contributing to a market that favors buyers, with median market rent at $3,020, reflecting downward pressure on rental prices year-over-year.

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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.