Income, Population Growth Spur Texas Luxury Home Sales

AUSTIN (Texas Association of Realtors) – Strong growth in luxury home sales continued in 2014 throughout Texas’ largest markets, according to the 2015 Texas Luxury Home Sales Report released yesterday by the Texas Association of Realtors.

The report cited sales volume increases from 9 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.

"The overall economic growth and prosperity in Texas have contributed heavily to the luxury market, making it one of the strongest segments of housing in Texas in 2014," said Real Estate Center Research Economist Dr. Jim Gaines.

Gaines said the state also benefited from people moving here from places like California, where a modest two-bedroom condo can be valued at $1 million or more.

"Those people sell their home in California, move to Texas and realize their money goes much further in our market," Gaines said. "Thus, even if they don’t have an income typical of a luxury homeowner, they have assets to purchase luxury homes and are stimulating that market."

In terms of volume, the Houston area had the largest number of luxury home sales in Texas, with homes valued at $1 million or more representing almost 2 percent of overall home sales. Luxury sales were up 13 percent over the prior year, which significantly outpaced the 2 percent year-over-year growth seen in volume for the total market. Active listings for luxury homes in Houston were up 19.7 percent over the previous year.

Austin showed similar trends, with luxury homes representing 2 percent of the overall housing market and increasing 9 percent over the previous year.

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 over the previous year, when overall home sales were flat.

The most aggressive growth in luxury sales was in San Antonio, where homes valued at $1 million or more represented less than 1 percent of the market, but volume increased 26 percent over 2013.