The Texas luxury home market had a strong first eight months of 2016, according to the Texas Luxury Home Sales Report released by the Texas Association of REALTORS®, which looked at homes priced $1 million or higher in the major areas of Austin, Dallas-Fort Worth, Houston, San Antonio, Corpus Christi, and Midland.
“The details of a million-dollar home vary—it could be a lakeside property in Austin, a luxury condominium in Dallas, a vacation property along the coast, or a large home with acreage in West Texas,” said TAR Chairman Leslie Rouda Smith. But, “The diversity and resiliency of Texas real estate is evident in the luxury housing market.”
Luxury home sales in this period increased in Austin, Dallas, and San Antonio, when compared to this time frame last year. The highest gains were in the smaller cities: Corpus Christi luxury home sales jumped 60 percent, and Midland luxury home sales jumped 166.7 percent. Houston was the exception to the increases, decreasing 7.9 percent compared to last year.
Prices in the Texas luxury home market, however, remained flat or showed declines, with the exception of Midland. Luxury home prices in this oil town increased 13.8 percent. The highest median price for luxury homes was found in Dallas-Fort Worth, with a median price of $1,400,000. The highest price per square foot for luxury homes was found in Austin, where the median price was $345 per square foot.
The report explains that high prices per square foot are due to both higher-end building materials and rising development costs. “Rising home prices and development costs are pushing higher-end homes into the $1 million-dollar-plus price class. New construction in the luxury housing market can easily reach $500 or $600 per square foot, particularly among high-rise condominiums in urban centers,” said Smith.
As far as inventory, all six major areas had double digit gains in luxury homes on the market. Days on the market for luxury homes decreased in Austin, Corpus Christi, Midland, and San Antonio.
Real Estate Center at Texas A&M University Chief Economist Dr. Jim Gaines said, “Several factors are driving Texas’ luxury home sales growth in 2016. Consistent with the downturn of the oil and gas sector, homeowners are putting more expensive homes on the market. Other luxury home sales are from new home construction contracted two years ago, when the energy sector was healthier.”