Tarrytown has long been one of Austin’s trendiest neighborhoods. (Just ask Emma Stone.) But last year, its home sale prices dropped more than in any other neighborhood in the city.
Despite being one of the wealthiest ZIP codes in Texas, home sales in ZIP code 78703 fell more than in any other ZIP code in Austin in 2025, year over year, according to Multiple Listing Service data published by Team Price Real Estate. Although Austin’s private listing scene obscures the full picture, agents say that luxury buyers’ interest in the neighborhood has lessened since the housing boom of the pandemic.
The 252 homes sold in Tarrytown last year averaged a sale price of $1.5 million, an 11 percent drop from the average sale price of $1.7 million in 2024 — and the greatest percentage decline in the city, Team Price reports.
Meanwhile, the fellow luxury strongholds of Downtown and Westlake generally held flat, indicating that Austin’s lapse in luxury demand isn’t affecting the market uniformly. The average sale price of a Downtown Austin home rose by less than $1,000 in 2025, year-over-year, hovering at about $1 million. In Westlake, the average sale price fell by just 1 percent, from $2.22 million to $2.19 million.
All of Austin inflated during the pandemic, as the city attracted buyers from the coasts. Now that many of those buyers are leaving, enduring value remains in neighborhoods like Westlake, which is within the exemplary Eanes Independent School District, while the froth is being skimmed away from neighborhoods like Tarrytown, said Moreland Properties agent Greg Walling.
“As the market softened, those out-of-town buyers have moved on or decided to go back home, or whatever the case may be. And so some of those sales [dropped in value] in some people’s eyes, even though they were just elevated in such a quick manner,” Walling said.
However, due to a widespread preference for off-market trades among Austin luxury sellers, MLS data captures only a portion of the true market, according to Amy Deane, the top producer for 2025 at Moreland Properties.
“If I have a waterfront house, and it’s worth $20 million and it’s on the tax roll at three and a half [million], we’re going to do everything we can to sell it off-market. Because no buyer is going to want to pay market price when the taxes are a fifth of what it’s actually worth,” Deane said.
“Most of our sales of luxury homes are never hitting the public market, so nobody knows what they’re selling for,” she added.
Even so, the luxury market has cooled significantly since the heat of 2021. While the resale market evades comprehensive analysis, spec homes and land are both cheaper in Tarrytown lately, Deane said. The price of an acre in ZIP code 78703 jumped by almost $1 million from 2021 to 2022 and fell by about $100,000 by 2024, according to the American Enterprise Institute.
“Late 2020 and early 2021, I was writing offers for buyers that were like, ‘All cash over ask’; ‘No inspection’; ‘We love your home, and we love your cat and your dog, and we’ll adopt your kids if you let us buy the house.’ After the surge, you didn’t have to do that anymore,” Deane said.
Fewer elite sales are taking place behind the scenes as a result.
“A property I have on Northumberland [Road} that sold in the fives [millions], I would have always sold that off-market,” Deane said. “I had to sell it on market last year because I needed the visibility.”
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