The number of Texas homes sold for $1 million or higher jumped 19.1% and topped $7.5 billion in total sales dollar volume in 2017, according to the 2017 Texas Luxury Home Sales Report released today by the Texas Association of Realtors.
From October 2016 to November 2017, Texas luxury home sales jumped to 4,622 sales, making luxury home sales the smallest but fastest-growing segment of the Texas housing market in 2017. During the same time frame, the sales dollar volume of Texas homes sold for $1 million and higher was $7,558,278,236, a 19.9% increase from the same time frame the year prior.
Vicki Fullerton, chairman of the Texas Association of Realtors, said, “Despite slowing growth trends across the Texas housing market, job market and economy in 2017, Texas luxury home sales volume has continued to grow at a booming pace. Rising home prices, high-end remodeling activity in major metro areas and relocation activity from out-of-state residents all continue to be drivers for Texas home sales of $1 million and higher.”
Despite the surge in sales volume, the median price for Texas luxury homes in the first 10 months of 2017 remained unchanged year-over-year at $1,350,000. The average price per square foot for luxury homes was $349, a 1.9% increase from the first 10 months of 2016 and more than doubles the $122 average price per square foot for the median Texas home.
It is typical for luxury homes to spend significantly more time on the market than lower-priced segments of the housing market. From January to October 2017, luxury homes in Texas spent an average of 98 days on the market, an increase of three days from the same time frame in 2016.
“Signs of a softening housing market are historically first seen among luxury price classes, but there’s been no such evidence of a softening market among Texas luxury home sales this year,” concluded Fullerton. “Slowing luxury home price appreciation in Texas, however, could indicate that home price growth among the Texas housing market at large could begin to normalize in 2018, which would help curb growing housing affordability challenges throughout the state.”
The 2017 edition of the Texas Luxury Home Sales Report is provided by the Data Relevance Project, a partnership among the Texas Association of REALTORS® and local REALTOR® associations throughout the state. Data analysis is provided by the Real Estate Center at Texas A&M University. The report analyzes home sales priced $1 million and higher from November 2016 through October 2017 for the Austin, Dallas-Fort Worth, Houston and San Antonio MSAs.
