Are Home Prices Rising or Falling in Lakeway, TX?
Lakeway, a city near Austin, TX, has seen its median home price fall about 8% over the past year, bringing the cost of entry closer to reach for buyers considering this lakeside community. Here's what the data shows and what buyers and sellers should keep in mind.
The National Picture
The U.S. median home price reached about $399,000 in the 3 months ending August 2026, a 2% increase from a year earlier. Affordability has improved modestly: the typical household earns about $88,000 and puts roughly 34% of income toward housing, down from 36% last year. About 20% of listings nationally have had a price cut, there are four months of supply, and homes take a median of 50 days to sell.
Home Prices in the Austin Area
Austin's metro median is about $414,000, down roughly 6% from last year. The typical metro-area household earns around $109,000, with about 34% of income going to housing, a 2-percentage-point improvement year over year. Lakeway, at $763,000, remains well above the metro median and likely requires above-average income or a larger down payment.
Luxury Prices Retreat From Last Year's Highs
Lakeway's median sale price dropped about 8% to $763,000 — roughly $68,000 less than a year ago. About 11% of sales closed above asking, and the sale-to-list ratio of 97% shows buyers are negotiating below list. About 43% of listings have had a price reduction, and homes sit for a median of 73 days. The nearby Sweetwater neighborhood saw the opposite trend, with prices rising about 7% to $760,000.
Why Are Prices Falling in Lakeway?
Buyer interest has grown but not fast enough to absorb the available supply. Pending sales rose about 8% and active listings dipped 5%, yet at 4.8 months of supply, there are still more homes than buyers at current price levels. New listings grew about 3%, adding to the inventory. Sellers in this price range may need to be realistic about pricing as buyers compare options across the western suburbs.
| Neighborhood | Median Price | Price YoY | Price Drops | Months of Supply |
|---|---|---|---|---|
| Lakeway ★ | $763,495 | -8.2% | 42.6% | 4.8 |
| Sweetwater | $759,633 | +7.4% | 49.5% | 4.6 |
| Brushy Creek | $524,653 | +0.9% | 49.1% | 3.4 |
| Cedar Park | $507,164 | +3.9% | 44.8% | 3.8 |
| Dripping Springs | $480,132 | +3.3% | 41.3% | 3.3 |
| Leander | $427,717 | +0.6% | 47.5% | 5.0 |
Limited to neighborhoods with at least 10 home sales in the period.
All data comes from Redfin and represents a three-month rolling average ending August 2026. This article has been generated, in whole or in part, using generative artificial intelligence (AI) technology, with input from Redfin head of economics research Chen Zhao. While efforts have been made to ensure the accuracy and reliability of this information, you should independently verify all data, facts, and citations contained in this article before relying on it for any purpose. This information is not a substitute for advice from a real estate agent, financial advisor, or other licensed professional. Check the Redfin Data Center for additional in-depth housing market data.
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