Are Home Prices Rising or Falling in Northwest Hills, TX?
Northwest Hills, a neighborhood in Austin, TX, is one of Austin's priciest areas, with a median sale price of $1,107,465 that has edged up about 2% from last year. Here's why, and what it could mean if you're looking to buy or sell.
The National Picture
During the 3 months ending August 2026, the national median sale price stands at about $399K, up roughly 2% year over year. Affordability is slowly improving across the country: the typical household earns around $88,000 and devotes about 34% of income to housing costs, down from 36% the year before. Supply has loosened to about 4 months, with roughly 20% of listings carrying a price cut.
Home Prices in the Austin Area
In the Austin metro, the median sale price has dropped to approximately $414,000, a 6% decline year over year. The typical metro-area household earns about $109,000 and spends roughly 34% on housing. That housing cost share fell about 2 percentage points from last year, reflecting real affordability gains across the metro.
Prices Edge Higher in a Premium Pocket
Northwest Hills' median of $1,107,465 is nearly three times the Austin metro median, placing it firmly in the premium tier. Prices rose about 2%, a modest gain compared to Zilker's 27% surge but a clear contrast to the metro's 6% decline. About 10% of homes sold above list price, and the sale-to-list ratio of 97% indicates transactions close near asking.
Among neighbors, South Lawn's median dropped 16% to about $699K, while Jester held essentially flat at $746K. RMMA fell about 4% to $829K. Northwest Hills' upward trend runs counter to the softening seen in most surrounding neighborhoods.
Why Are Prices Rising in Northwest Hills?
Northwest Hills is seeing modest price gains because buyer demand has kept pace with new supply. Pending sales rose about 8% year over year even as active listings grew 14% and new listings increased 17%. With about 5 months of supply, the market is not especially tight, but homes move quickly at a median of 39 days on market. Only about 31% of listings have had a price reduction, one of the lower rates among nearby neighborhoods, suggesting sellers here can hold closer to their initial asking prices.
| Neighborhood | Median Price | Price YoY | Price Drops | Months of Supply |
|---|---|---|---|---|
| Northwest Hills ☆ | $1,107,465 | +2.3% | 31.1% | 5.4 |
| South Lawn | $699,312 | -16.0% | 40.6% | 5.7 |
| Jester | $746,140 | +0.2% | 44.6% | 4.2 |
| RMMA | $829,100 | -4.4% | 31.1% | 4.8 |
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.
Categories
Recent Posts
