I get excited when reports come out like this one. Deep down, I’m a numbers guy. Big Data & Real Estate kind of stuff. I love preparing pretty graphs, infographics and studying spreadsheets of numbers Of course nobody can predict where housing prices will be in the future, but I believe that understanding the history of neighborhoods and past price data can help us understand where things will be.
So you can imagine my excitement when I learned at our weekly sales meeting that the Texas Association of Realtors and The Real Estate Center at Texas A&M University just published a report about luxury home sales in 4 major Texas metro regions.
What is a luxury home?
Now, while a 7 figure pad may be commonplace in Manhattan or Menlo Park, here in Austin it’s quite spectacular. I just read yesterday about late night host and former Saturday Night Live cast member Seth Meyers buying a 994 square foot apartment in Manhattan for $3.5M. Here in Austin, you will get a 6 bedrooms, 10 bathrooms, 8500+ square feet on 1+ acres on the lake. That’s Texas Luxury.
My regular subscribers will know that you can get some real beauties, too – like this one, or this one. In fact almost 1 in 10 homes in the Austin market is a luxury home, but not everyone gets a feature on my blog.
Selling a Luxury Home
I’ll be upfront. It does take longer to sell these expensive homes. I don’t think the clients at this level are any more particular than those buying their first house (I can tell you some stories about taking first time home buyers to 40+ properties), but at the upper end of the market, there are fewer buyers, and it takes some time to connect a luxury buyer with a luxury home. In fact it takes 77% longer to sell a million dollar listing in Austin. So if you are thinking about selling, keep that in mind. But also keep in mind that some agents don’t use the Internet as well as others (Hint, Hint).
The Texas Luxury Home Report
As of today, Jan 7, 2014 there are 358 homes in the Austin MLS that are $1,000,000 or more.
In the past year, 519 million dollar plus homes have sold. According to the report which only calculated data through October that’s 1.9% of the market. It’s not huge, but 2 out of every hundred houses sold is not bad.
What is most encouraging to me is that among the four Texas metro areas examined; Dallas, Houston, Austin, and San Antonio, the Austin market is the fastest growing segment, up over 55% from last year. We have lots of new companies here, and they are doing very well, if you believe the owners are buying nice houses. And I do. Because I’ve seen it.
You can read the 2013 Texas Luxury Home Sales Report report for yourself using this link.