Sales of luxury homes in Texas continue to increase
The report cited sales volume increases from nine percent up to more than 25 percent for homes sold at $1 million or more in markets including Austin, Dallas-Fort Worth, Houston and San Antonio.
As covered in the 2014 Texas Relocation Report released by the Texas Association of Realtors in October, Texas continues to be the most sought-after location for moving, gaining more residents than any other state from places like California, Florida, Oklahoma, Louisiana and Illinois.
According to the report, for every Texan that moves to California, two Californians move to Texas. This migration is driving demand for homes in Texas, including those in the luxury market.
Based on data analyzed by the Real Estate Center at Texas A&M University, the Texas Luxury Home Sales Report analyzes trends in homes sold for $1 million or more from January through October 2014 in Texas' four largest markets.
In terms of volume, the Houston area featured the largest number of luxury home sales in Texas, with $1M+ homes representing almost two percent of overall home sales. Luxury sales were up 13 percent over the prior year, which significantly outpaced the two percent year-over-year growth seen in volume for the total market.
Active listings for luxury homes in Houston were also up compared to the prior year, by 19.7 percent in a market where overall listings were down 7.4 percent. That trend was seen in inventory for luxury homes as well, which was .5 more months than last year, whereas inventory for the overall market decreased by .3 months.
The Austin market showed similar trends, with luxury homes representing two percent of the overall housing market and an increase in sales volume for $1M+ homes of nine percent over the prior year. That compares to a total market sales volume increase of one percent in the Austin area.
Listings for luxury homes in Austin increased at a pace consistent with the rest of the market, approximately 11 percent, and the time required to sell a luxury home remained slightly longer than five months, compared to 40 days for the overall market.
In Dallas-Fort Worth, luxury sales represented a smaller percentage of the market at 1.2 percent, but the sales volume was the second highest in the state and increased by double digits, up 15 percent compared to 2014 when overall home sales were flat.
Despite a modest increase in listings, the inventory of luxury homes shrank in Dallas-Fort Worth in 2014 by 1.2 months, mirroring a decrease in inventory across the market.
The most aggressive growth in luxury sales in Texas was seen in San Antonio, where $1M+ homes represented less than one percent of the market, but volume increased 26 percent over 2013. In addition, the time required to sell a luxury home in San Antonio decreased significantly, going from 18 months in 2013 to 15 months in 2014. ■