What does a home in Castlewood Forest cost?

Castlewood Forest is an established neighborhood of single-family homes in south Austin, in the 78748 ZIP code, about 8 miles southwest of downtown. The homes that sold over the last year were built between 1969 and 1978, on lots of roughly a third of an acre. 18 homes sold there in the 12 months ending September 2026 at a median of $758,750, and 3 are for sale today.

Castlewood Forest houses sold for a median of $758,750 across 18 sales in the last 12 months. Three-bedroom homes had a median of $720,000 across 5 sales, and four-bedroom homes $758,750 across 12 sales. Over the last 24 months, the median across 33 sales was $750,000. The median home for sale today is listed at $825,000, and active listings run from $545,900 to $949,000.

Castlewood Forest favors sellers, with about 2.0 months of supply as of September 2026 and only 3 homes for sale. The typical home closed at 97.7% of its original list price and went under contract in 32 days. Buyers do have some room: half of the homes that sold cut their price at least once. The practical advice is to be ready to move when the right house lists, because choices are limited at any one time.

The main differences are age and lot size. Castlewood Forest homes that sold in the last year were built between 1969 and 1978 and sat on a median lot of roughly a third of an acre, with about 2,290 square feet. Newer subdivisions usually offer smaller lots and newer systems. Compare total cost, including any updates a 1970s home needs, against the recent sales in each neighborhood you are weighing, and ask us for those numbers.

Get pre-approved first, since sellers here see strong interest and a clean offer matters with only 3 homes for sale. Set up a saved search inside the Castlewood Forest boundary so new listings reach you the day they list. Because the homes date to the late 1960s and 1970s, budget for thorough inspections of the foundation, roof, electrical, plumbing and sewer line, and use the results to negotiate repairs or price.

Pricing an original-condition home like an updated one. With houses built in the 1970s, buyers adjust sharply for kitchens, baths, roofs and systems. Over the last year half of Castlewood Forest homes that sold cut their price, even though the typical home closed at 97.7% of its original list. The homes that sold fastest were priced against recent sales in similar condition, not against the best-updated house on the street.

The 18 homes that sold in the last 12 months were built between 1969 and 1978, with a median build year of 1973. None of them were built in 2023 or later, so this is a resale market rather than new construction. Older homes here tend to sit on larger lots, about a third of an acre at the median, which gives owners room for additions, pools or detached structures, subject to city rules.

Four-bedroom homes were the most common sale in Castlewood Forest over the last 12 months, with 12 sales at a median of $758,750. Three-bedroom homes had a median of $720,000 across 5 sales. The gap between the two is small, because condition and updates matter as much as bedroom count here. A fully updated three-bedroom home can outsell an original four-bedroom home on the same street.

Castlewood Forest is in the 78748 ZIP code, and all 18 of its sales in the last 12 months were in 78748. That ZIP code covers a large stretch of south Austin with neighborhoods of many ages and price points, including Shady Hollow, so ZIP-level statistics blend very different homes. The figures on this page come only from sales inside the Castlewood Forest boundary used by our map search.

Request a home value from us and we will price it against the Castlewood Forest sales that match it: similar bedrooms, square footage, lot and level of updates, from recent ACTRIS MLS closings. For context, the neighborhood median was $758,750 across 18 sales in the last 12 months, and the typical home closed at 97.7% of its original list price. With so few sales each year, condition-matched comparisons matter more than the median.