The inventory of Houston homes priced at $1 million and above was recently up by nearly 30 percent year-over-year, as wealthy buyers are taking a cautious approach.
“The slowdown in the Houston (luxury) market is a knee-jerk reaction from buyers due to all the attention on low oil prices,” according to Redfin agent Tara Waggoner in a recent release.
Heading into March it appears luxury home supply could continue to expand in Houston.
Accounting for a portion of this inventory growth will be larger, $3 million-plus mansions, some of them historic, others relatively newly built.
Mega-mansion hits the market in Houston
John Daugherty Realtors recently listed a 21,000-square-foot mansion outside of Houston in Morgan’s Point. The 1927-built estate, dubbed “Texas White House” is being listed for $5.995 million. The mansion was built by the founder of Humble Oil Company and sits on six waterfront acres along Galveston Bay.
According to the listing page, the nine-bedroom, 11-bath mansion features much of its original flooring, panels, fixtures and plumbing.
The brokerage is currently listing a number of other older mansions within Houston. They range in size from 10,000 square feet to nearly 13,000 square feet and carry prices tags from $9.3 million to $17.9 million.
Modern luxury homes
Houston submarkets that should see the largest supply growth in the $3 million to $5 million home sector include the Woodlands, Tanglewood, Rivercrest and Memorial. These submarkets are home to a number of 2006- to 2008-built modern mansions.
A 30,000-square-foot mansion in the Woodlands subdivision of Carlton Woods was recently set for auction via Platinum Luxury Auction. According to the firm, multiple offers were received prior to auction. These offers are currently being vetted. The reserve sales price for the 2006-built manor was set at $6 million.
Of note, the average sale price for the most expensive five percent of homes in Houston was $1.412 million during the fourth quarter of 2015. This price represented only a 1 percent year-over-year gain, according to Redfin.
