Lakeway, TX 78734 Real Estate Market Report

ZIP Code: 78734
Report Date: February 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

The Lakeway market is currently characterized by a median sold price of $770,000, reflecting a significant indicator of market value and transaction activity. This price point suggests a robust demand despite the overall trend of prices being down year-over-year. The market appears to be normalizing, with strong rental appreciation indicating persistent underlying demand in desirable areas, contrasting with the broader Austin metro which is stabilizing towards a balanced environment.

Transaction velocity is notably slower, with a median days on market of 271, suggesting a cooling in sales activity. The current inventory conditions show elevated levels, with excess supply relative to sales activity. This dynamic may indicate pricing friction as sellers adjust expectations in response to the market's evolving landscape, where the median listing price stands at $652,500, creating a notable gap compared to the sold price.

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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 Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in Lakeway TX 78734 average around 6.09% compared to the 2026 origination average rate of 6.87%.

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 $770,000 indicates strong market value despite a down year-over-year price trend.

2. With a median days on market of 271, the market is experiencing slower sales velocity, suggesting a cooling in transaction activity.

3. Elevated inventory levels are present, indicating excess supply relative to sales activity.

4. The median listing price of $652,500 reflects a significant gap compared to the sold price, suggesting potential pricing friction in the market.

5. Despite the cooling sales, the median market rent of $3,330 shows an up trend, indicating strong rental demand.

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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.