Out-of-towners, oil boom drive San Antonio luxury housing

SAN ANTONIO – San Antonio’s luxury housing market continues to grow stronger as more people continue to move to Texas from other states and the oil boom produces better-paying jobs.

A luxury homes sales report from the Texas Association of Realtors shows the number of Alamo City luxury homes sold during the first nine months of 2014 increased by 26 percent, from 86 luxury homes in 2013 to 107 homes in 2014.

Luxury homes, defined as those worth more than $1 million, account for less than 1 percent of San Antonio’s overall housing market.

Luxury homes spend on average about 450 days on market.

The San Antonio Board of Realtors reported the local housing market had 3.9 months worth of housing inventory in November, the lowest it’s been since January 2014. On average, those homes are spending 63 days on the market.

Dr. Jim Gaines, an economist at the Real Estate Center at Texas A&M University, said the luxury housing market is being driven by the state’s overall economic growth and people moving to Texas to get more bang for their buck when buying a home.

"We also saw a lot of people moving to Texas from places like California, where a modest two-bedroom condo can be valued upwards of $1 million," Gaines said.

"Those people sell their home in California, move to Texas and realize their money goes much further in our market. 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."

For the 2015 Texas Luxury Home Sales Report, see the Texas Association of Realtors.

tag: San Antonio news