- The West University/Southside, The Woodlands and Bellaire markets contribute the most Houston luxury sales.
- Luxury home sales activity has recently been declining on a monthly basis.
- Luxury home prices in Houston recently dipped 7 percent on a year-over-year basis.
Of the four major Texas metros, Houston luxury homes sales were the highest during a recent 10-month period.
According to the Texas Association of Realtors (TAR), a total of 1,284 homes sold for at least a $1 million spanning January to October 2015. This total equated to a 4.5 percent rise in luxury transactions on a year-over-year basis.
According to the Houston Association of Realtors, during the 10-month period the Houston submarkets that contributed the most luxury sales where:
- West University/Southside – 96 sales
- The Woodlands – 74 sales
- Bellaire – 69 sales
- Memorial West – 44 sales
- Heights/Greater Heights – 42 sales
- Rice/Museum District – 23 sales
- Braeswood Place – 22 sales
- Energy Corridor – 19 sales
- Galleria – 18 sales
These figures would lead one to believe that Houston’s luxury market is booming; however, other data eyeing late luxury sales and price appreciation paint a different picture.
Since last September the number of $500,000 to $1 million+ homes sold per month has declined on a year-over-year basis. According to the HAR, the volume of $500,000 to $1 million+ homes that sold in December and November equated to 17.2 percent and 22 percent declines, respectively.
However, from May to August the volume of $500,000-plus homes that sold did increase on a year-over-year basis, peaking in July when sales volume was up by 18.3 percent.
During the third quarter of 2015 the average Houston luxury home sales price – the top five percent of homes in the market – stood at $1.35 million, according to a recent Redfin report. This average equated to a 7 percent year-over-year drop in value.
Statewide the recent strength of the $1 million to $1.5 million home sales sector was praised by TAR as driving the luxury market.
The association pointed to several recent trends in the luxury sector: homebuyers purchasing residences on smaller lots located in more desirable locations, and buyers acquiring older homes on prime lots. The later group of buyers are commonly demolishing these aging homes and building luxury residences in their place.
Spanning January to October of last year, Austin saw a 16.3 percent year-over-year rise in luxury sales, those valued at $1 million or more.
In Dallas-Fort Worth luxury sales activity during the same 10-period spiked by 12.4 percent year-over-year. While luxury home sales don’t account for a significant portion of San Antonio’s total home sales, the sector did see a 36.4 percent year-over-year increase.