ZIP Code 78703 // Real Estate Market Report

ZIP Code 78703 Real Estate Market Report

1. Current Market Snapshot

• Median Sale Price: Homes in 78703 sold for approximately $1.415 million in July 2025, reflecting an 8.2% increase year-over-year (YoY).Redfin

• Price per Square Foot: Roughly $628, up about 10.4% YoY.Redfin

• Average Days on Market (DOM): Averages 71 days, up from 52 days a year ago—indicating the market is cooling modestly.Redfin

• Homes Sold: 69 homes sold in July 2025, down from 76 in the same period last year.Redfin

2. Inventory & Listings

• Active Listings: Approximately 196 homes currently listed, with Realtor.com reporting a median listing price of $1,662,500.RealtorRealty Austin

• Time on Market for Listings: These listings have been on the market for an average of 103 days.Realty Austin

3. Trends & Market Dynamics

a) Local Trends

• Redfin’s “Compete Score” rates 78703 as somewhat competitive (~40/100). Homes tend to sell for about 4% below list price, often taking around 72 days to go pending.Redfin

• The overall decrease in sales and increasing DOM suggest a gradual easing of the previously red-hot market.

b) Broader Austin Market Context

• Inventory Surge: Since 2019, housing inventory in the Austin area has climbed nearly 70%, which is the second-biggest increase among major U.S. metros.Statesman

• Oversupply & Demand Shift: A post-pandemic construction boom led to more listings, while migration and buyer demand have softened. Austin recorded the largest new listing growth and steepest YoY drop in median home prices (over 6%) nationally.MySA+1

• Price Corrections & Buyer Power: Nearly 45% of Austin listings underwent price reductions, and declining demand is shifting leverage toward buyers.MySA+1

• At-Risk Listings: In May 2025, nearly 14% of Austin listings were at risk of selling at a loss. Particularly, homes purchased during the COVID boom faced the highest risk (~47.5%).Axios

• Favorable Trends for Buyers: A gradual adjustment is underway—high mortgage rates and rising inventory are enabling more negotiation. About 44% of sales in early 2025 included seller concessions.Business InsiderAxiosMarketWatch

Summary Table: 78703 Market at a Glance

Market Outlook & Strategic Insights

• Current State: 78703 remains highly desirable, with strong luxury appeal. Though prices are still rising, the market is visibly cooling—evidenced by longer selling times and fewer transactions.

• Near-Term Forecast:

  • Expect ongoing price moderation as inventory remains elevated and buyer activity softens.

  • More listings may undergo price reductions or include concessions.

  • Higher days on market suggest negotiations may become more common—buyers may start from a position of strength.

• Advice for Buyers:

  • Leverage the cooling trends: lower competition and growing inventory may open doors for negotiation.

  • Focus on financing readiness—prepared buyers may move more confidently in this environment.

• Advice for Sellers:

  • Price competitively and consider flexibility with terms to attract offers.

  • Investing in presentation and differentiating your property can help reduce market time.

  • Watch listings of similar homes and consider preemptive adjustments if DOM climbs.

78703 continues to be a premium, stable market with enduring appeal. However, a transition toward a more balanced market is underway. While conditions are still favorable to sellers, the advantage is shifting, giving prepared buyers a real chance to land deals—especially in this high-end segment of Austin's housing landscape.

Let me know if you'd like deeper insights—such as breakdowns by property type, specific neighborhoods (e.g., Pemberton Heights vs. Clarksville), comparison to adjacent zip codes, or year-over-year price trajectory charts.