#USA #Texas #Texas REALTORS #Luxury Homes #Real Estate Market

Significant Growth in Million-Dollar Home Sales in Texas

The Texas real estate market has shown remarkable resilience and growth, particularly in the luxury segment. According to the recent report by Texas REALTORS®, the number of homes sold for over $1 million increased by 10% from November 2023 to October 2024, totaling 12,888 transactions. This impressive figure marks the second-highest sales record in history, with these transactions collectively valued at a staggering $21.4 billion.

Interestingly, while homes priced above $1 million accounted for just 4% of total home sales in Texas, they represented 15.7% of the overall sales value of residential properties in the state, reflecting a significant rise of 14.3% compared to the previous year. This trend underscores how the luxury market continues to play a crucial role in Texas's real estate landscape.

According to Christy Gessler, President of Texas REALTORS®, the luxury real estate market in Texas is evolving as prices continue to rise, leading more properties to cross the million-dollar threshold. Homes in this price range vary significantly in terms of size, amenities, and, most importantly, location. Nearly 90% of the million-dollar homes sold during this period were located in four major metropolitan areas in Texas.

Metropolitan Areas Leading Sales

The Dallas-Fort Worth-Arlington area was the clear leader, accounting for 38.7% of total sales with 4,992 homes sold, valued at approximately $8.5 billion. Following closely were the Houston-Woodlands-Sugar Land area at 26.2% and Austin-Round Rock, which recorded 19.1%. Lastly, San Antonio-New Braunfels made up 5.1% of these luxury home sales, with the remaining areas of Texas totaling 10.9%.

In terms of growth, the Dallas metropolitan area saw the most significant increase in sales of million-dollar homes, rising by 14%. This was closely followed by Houston and San Antonio with increases of 10% and 4%, respectively, while sales in Austin remained consistent with previous levels. Overall, the Texas market for homes over $1 million exhibited a steady 10% increase during this timeframe.

Market Trends and Pricing

The average price per square foot for homes priced above $1 million stood at $418, emphasizing the premium nature of luxury listings, which is more than double the average price per square foot for all residential homes in Texas, recorded at $190. Despite the high demand, these luxury homes continued to remain on the market longer, averaging 68 days compared to 58 days from the previous year. Moreover, the months of inventory for these luxury homes increased from 7.6 months to 8.1 months, indicating a shift in market dynamics.

Gessler further explained that the market for million-dollar homes now includes a wider variety of properties, each with unique characteristics. This diversity necessitates the expertise of real estate agents who are well-versed in the complexities of the luxury market. Texas REALTORS® agents are equipped to provide guidance tailored to the individual needs of buyers and sellers.

Conclusion

The data presented in the 2024 Million-Dollar Home Sales Report for Texas illustrates a thriving luxury real estate market amidst broader economic challenges. With a robust demand coupled with a modest increase in supply, the trend of rising sales in this segment is likely to continue. Real estate professionals and potential buyers alike should pay close attention to these emerging trends as Texas remains a premier destination for luxury living.

About the Report

The findings discussed are sourced from the Texas REALTORS® Million-Dollar Home Sales Report for 2024, which provides in-depth analysis and insights related to home sales priced at $1 million or more. This report is compiled in collaboration with local real estate associations and the Texas Real Estate Research Center at Texas A&M University, ensuring that stakeholders have access to the most relevant and comprehensive data in the industry.