Luxury Housing Insight
A record-breaking 4,000 luxury homes were sold in Texas in August 2020, even as overall home sales decreased 4.1 percent from an all-time high the prior month, according to Texas Housing Insight published by the Real Estate Center at Texas A&M University. Austin, with a modest increase in overall sales, had a “record-breaking 3,622 sales as the share of luxury homes sold exceeded one-fifth for the first time ever.”
Meanwhile, months of inventory for Texas luxury homes (homes priced over $500,000) decreased for the third straight month in August, hovering slightly above what the Real Estate Center considers a “balanced market” (six months of inventory) at a supply of 6.3 months. Overall inventory for the state was down to a record 2.4-month supply, and the report cited the shortage of inventory as shifting sales toward higher-priced homes. The median home price in Texas increased 8.4 percent annually.
Single-family private construction values for Texas homes increased 2.9 percent, “largely due to Austin values skyrocketing 30.4 percent to a record high,” according to the report.