Sales of luxury homes around Texas, especially in Austin, are on the rise. According to the most recent report from the Texas Association of Realtors, Austin saw a 9 percent increase in sales of luxury homes in 2014 compared to 2013.
From January through October of last year, 479 out of the 23,700 houses sold in town were considered luxury homes, meaning they cost $1 million or more. Luxury home sales made up two percent of the city's overall housing market — the highest percentage of the four largest housing markets in Texas, which include Dallas-Fort Worth, Houston and San Antonio.
The Texas Association of Realtors attributes job and population growth as two key factors for the increase in luxury home sales.
And luxury inventory is up, too. In October 2014, more than 8 percent of all active listings in Austin cost at least $1 million. That being said, it takes an average of 161 days (over five months) to sell a luxury home in Austin, while the average for the overall market is just 40 days.
According to a blog post released in coordination with the report, Scott Kesner, chairman of the Texas Association of Realtors, attributes job and population growth as two key factors for the increase in luxury home sales. "We're seeing more demand for luxury properties from Texans whose incomes are increasing, enabling them to move up, and from those moving to our state from elsewhere in the country."
As a whole, the luxury home sales volume in Texas experienced an increase of about 16 percentage points. While Austin's luxury home market takes the largest slice of the city's overall market, it experienced the smallest increase in sales compared to the rest of the state.
Houston, however, saw the largest amount of sales, with 1,194 luxury homes sold (a 13 percent increase from the previous year) and Dallas-Fort Worth experienced a 15 percent increase. Although luxury homes in San Antonio only made up 0.4 percent of sales (107 homes) in the overall market, the city saw a 26 percent increase over 2013.