The Texas luxury home market experienced a home sales volume jump of 19.1 percent in 2017, with sales topping $7.5 billion total, according to the Texas Association of REALTORS® 2017 Texas Luxury Home Sales Report.
“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,” said TAR Chairman Vicki Fullerton. “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.”
With 4,622 sales, luxury homes were the smallest but fastest-growing segment of the 2017 Texas housing market, based on the time frame of October 2016 to November 2017. Median price for luxury homes, however, remained unchanged year over year at $1,350,000. Average price per square foot increased 1.9 percent to $349, which is more than double the average price per square foot of $122 for a median home in Texas.
Time on the market for Texas luxury homes was 98 days, three days more than the previous year.
Fullerton said, “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.”
She did say that slowing appreciation in the luxury home market “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.”