West Lake Hills, TX 78746 Real Estate Market Report

ZIP Code: 78746
Report Date: March 2026
Market Temperature: NEUTRAL
Scope: Single-Family Residential (SFR) listings and comps only

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Executive Overview

As of March 2026, the real estate market in West Lake Hills, TX (ZIP: 78746) is characterized by a median sold price of $2,221,000, reflecting a stable demand amidst a backdrop of elevated inventory levels. The neighborhood has increased 15% since 2023, indicating a strong appreciation in property values despite broader market trends showing signs of softening. This price growth suggests that luxury buyers remain active, driven by the area's desirable demographics and amenities.

Transaction activity appears moderate, with median days on market recorded at 266 days. This extended timeframe may indicate slower sales velocity, particularly as the market temperature is currently assessed as neutral. The median listing price stands at $2,560,000, which presents a notable gap compared to the median sold price, suggesting potential pricing friction as sellers adjust expectations to align with buyer sentiment and market realities.

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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 the West Lake Hills TX 78746 area are around 6.35% compared to a national average of 5.99% for the same loan type in early March 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 $2,221,000 indicates strong market value despite elevated inventory levels.

2. With a median days on market of 266, the market is experiencing slower sales velocity, potentially impacting liquidity.

3. The median listing price of $2,560,000 reflects seller expectations that may not align with current buyer demand, indicating possible pricing friction.

4. The neighborhood has increased 15% since 2023, showcasing resilience and appreciation in property values amidst broader market trends.

5. Market temperature remains neutral, suggesting a balanced market condition with no clear buyer or seller advantage.

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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.