Dallas and Houston might draw much of the attention in Texas when it comes to luxury homes. After all, Texas' two biggest regions are also home to the bulk of the state’s millionaires and billionaires. But in 2019, Austin stole the luxury home spotlight from Big D and Bayou City.
A new report from Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury program ranks Austin among the country’s four top-performing luxury home markets in 2019. The others are Arlington, Virginia; Malibu, California; and San Diego.
In a February 19 release, Coldwell Banker says it found Austin and the three other top performers “had an evenly distributed hold on the top 10 percent of luxury sales in 2019. Their sales prices in relation to other luxury markets made them the top performers of the industry this past year.” In the Austin market, the annual pace of sales for homes above $2 million has climbed 45 percent since 2015, according to the report.
The report indicates that the local heavy demand for single-family luxury homes and luxury condos has been driven by highly paid employees of tech companies like Amazon, Apple, Dell, and Facebook.
Last year, 1,135 single-family luxury homes within the top 10 percent of sale prices for residential properties were sold in the Austin area, the report notes. For luxury condos in the 10 percent category, 265 were sold in 2019.
The median list for a single-family home in the 10 percent category was $1,499,725, while the median sale price was $1,257,884, the report says. Meanwhile, the highest list price was an eye-popping $37.5 million and the highest sale price was $8,442,500.
Among condos in the 10 percent category, the median list price was $915,000 and the median sale price was $744,625, according to the report. The highest list price for a condo was $6,995,000, whereas the highest list price was $4.1 million.
Downtown Austin is especially popular among luxury buyers, the report indicates.
“The inventory of homes in the downtown area is down to half a month’s supply,” Daniel Foreman, a sales associate at Coldwell Banker United Realtors in Austin, says in the report. “On the first day, you’re typically in a multiple-offer situation above asking price.”
Demand for luxury properties also is high along Lake Travis and Lake Austin, and in Georgetown and Round Rock, the report notes.
“Lake Travis is one of our strongest markets, and in 2019 it had more than $1 billion in sales,” Foreman says. “It’s very popular for families and people who prefer suburban bliss over downtown bustle.”
While Austin was a top performer in 2019, the report lists Fort Worth as one of the five top luxury markets to watch in 2020. The others are Boise, Idaho; Charlotte, North Carolina; Cincinnati; and Colorado Springs, Colorado.