Luxury Home Sales Up In Texas’ Big Cities
Luxury home sales were one of the fastest growing housing segments in 2015, with sales volumes increasing across the board for big-city homes sold at $1 million or more, according to the 2016 Texas Luxury Home Sales Report by the Texas Association of Realtors. The report noted this past year’s luxury home trend was “to purchase homes on smaller lots, but in more desirable locations and with higher-end amenities.” Rising home prices have pushed many high-end homes into the luxury market, said Jim Gaines, Ph.D., economist at the Real Estate Center at Texas A&M University. “Many homes priced in the $800,000 to $900,000 range a few years ago will now sell for more than a million.” He said, “Rising land and development costs are changing what today’s luxury market looks like, and many developers are now entering the high-end custom homebuilding market due to more expensive lot costs.” Texas Association of REALTORS® Chairman Leslie Rouda Smith said, “Texas’s economic prosperity continues to make luxury home sales one of the strongest sectors of the Texas housing market, particularly in the $1 million to $1.5 million range. In some neighborhoods, the lot alone is well worth $1 million and up.” Based on data from the Real Estate Center at Texas A&M University, the Texas Luxury Home Sales Report analyzed data from Austin, Dallas-Fort Worth, Houston, and San Antonio for the period of January through October 2015 and found sales volume increases ranging from 4.5 percent to 36.4 percent. Austin In Austin, luxury homes represented 2.2 percent of the overall sold housing market, at 585 homes, and sales volume year-over-year increased 16.3 percent. The median luxury home price was $1,381,252, which is a .9% increase compared to the previous year. The price per square foot for this category of home was $397, which is 2.5 times higher than the average home in Austin. In October 2015, luxury homes comprised 10.4 percent of the Austin market, and it was taking an estimated 100 days to sell a luxury home, 53 days longer than the typical Austin home. Other Texas Cities Compared to Austin’s 585 sold luxury homes, Houston led with 1,284, followed by 1,088 in Dallas. San Antonio had the least at 120. Median prices for luxury homes were led by Dallas at $1,400,000, followed by Houston at $1,395,000, then Austin ($1,381,252), followed by San Antonio at $1,298,375. San Antonio saw the largest percent increase in sold luxury homes, with 36.4 percent more than the previous year. The Dallas-Fort Worth area saw luxury sales grow by 12.4 percent. Houston saw an increase of 4.5 percent compared to 2014 and had the highest total amount of luxury home sales among Texas’ big cities, at 1,284 from January to October 2015.