Lockhart housing market slows, opens doors for buyers and inverstors
By Anthony Collins,
LPR Editor
After years of rapid growth and competitive bidding, Lockhart’s housing market is entering a new phase: stabilization. While it’s not a dramatic downturn, experts are calling it a strategic slowdown—one that could benefit both buyers and developers as the city braces for significant new residential growth.
According to recent data, the median home price in Lockhart as of May 2025 is $299,999, a 2.4% decline from the previous year. Other reports suggest that prices may actually be up slightly in some segments, underscoring the complexity and variability of the current market. What is clear, however, is that homes are staying on the market longer, with the average number of days on market rising to 63, more than double last year’s figure of 27.
The local housing inventory is showing signs of increase, giving buyers more options than in previous years.
As of May:
•80 homes are currently listed for sale
•25 homes are under contract
•51 homes have closed in the past 90 days
These numbers point to a market that is becoming less competitive, and more negotiable.
The latest breakdown by home size reveals significant fluctuations:
•2-bedroom homes: Down 31.7% to $190,000
•3-bedroom homes: Stable at $289,900
•4-bedroom homes: Down 2.7% to $320,900
•5+ bedroom homes: Down 33.6% to $458,000
While smaller and larger homes are seeing price declines, mid-sized homes remain relatively steady, which may indicate stronger buyer demand in that segment.
The rental market in Lockhart is holding steady, with the average monthly rent at $2,024 in April, almost perfectly aligned with national averages.
Local real estate expert Skyler Harmon-Williamson of Lone Star Realty says that the shift in the market is clear.
“It’s a buyer’s market for sure,” she said. “Two new communities just completed, and sellers need to price competitively to avoid losing ground to builder incentives.”
Harmon-Williamson noted that while prices have dropped, they are showing signs of leveling out, particularly as summer approaches, a historically active season for home transactions.
Interest rate volatility has also affected momentum.
“It’s made it tougher on both sides,” she explained. “Some people are hesitant to make a move.”
Despite that, interest from out-of-town buyers remains strong, particularly among Tesla employees and those relocating from other states.
“We’ve definitely seen a rise in buyers moving here for jobs and lifestyle,” she added.
Her advice to prospective buyers?
“Be creative on your terms and be flexible. Choose a local realtor that knows the market.”
One of the most significant developments on the horizon is a planned 1,200-home community along FM 2720, which is expected to put additional pressure on existing prices and inventory. Harmon-Williamson anticipates that this influx of housing will help stabilize the market and potentially spur new infrastructure investment.
The area is also seeing increased interest from investors.
“We currently manage 25 investor-owned properties and another 35 for local homeowners,” Harmon-Williamson said, pointing to a growing property management sector tied to real estate investment.
Her parting words were simple:
“Use a local agent, whether it’s me or not. Stay local.”
Experts agree that Lockhart’s housing market is in a strategic correction phase—one that allows buyers more flexibility and provides time for sellers to adjust to new expectations. With expanding development, growing investor interest, and steady rental demand, the fundamentals remain strong.
As Lockhart continues to benefit from its proximity to Austin and San Marcos, real estate professionals suggest that now is the time for thorough research, market savvy, and local expertise.
