Swananoah Front

Homes priced at $1 million or more are moving like hotcakes in Texas, according to the 2014 Texas Luxury Home Sales Report from the Texas Association of Realtors. The figures, assembled using data from the Real Estate Center at Texas A&M University, show that every Texas metro area posted double-digit growth in luxury price ranges.

Dallas posted a 22 percent increase in luxury home sales for the period between January and October 2013, the report shows, with Austin posting a whopping 55 percent increase (no wonder Trulia is calling our capital city way overvalued). Houston came in second with a 46 percent increase in luxury home sales, and San Antonio posted an 18 percent increase.

“Data from the Texas Luxury Home Sales Report shows that million-dollar homes are playing an increasingly important role in the Texas housing market,” said Dan Hatfield, chairman of the Texas Association of Realtors. “The housing slump is behind us and as Texas’ economy and population continue to accelerate, we’re going to see increasing development and demand in larger, higher-priced homes with luxury amenities.”

So, what’s driving the increase? It’s mostly thanks to the influx of high-paying tech jobs in Austin, and in Houston it’s likely due to oil and gas wealth moving into the area. For Dallas, a brisk job market driven by a healthy financial sector, as well as oil and gas wealth, could be fueling the luxury real estate market. The increase in sales definitely shows appreciation, though, and it makes you wonder just how many of these $1 million-plus properties are second homes or even investments.

“It’s common for luxury homes to have a significantly longer sell time and higher housing inventory than the average home simply because the pool of interested homebuyers is so much smaller,” said Jim Gaines Ph. D., and economist with the Real Estate Center. “However, this data still indicates strong demand, particularly in Austin, where homes of $1 million or higher are close to 10 percent of all active listings and are selling in less than six months, and in Houston, where housing inventory is only 7.4 months.”

Here’s the Dallas-Fort Worth market breakdown from the report:

In the Dallas-Fort Worth area, 809 luxury homes were sold between January and October 2013. Luxury home sales made up 1.1 percent of the total housing market and experienced a 22 percent increase in sales compared to the same period in 2012. This is slightly higher than the 19 percent year-over-year increase of the Dallas-Fort Worth housing market as a whole. As of October 2013, there were 922 active luxury home listings, 4.1 percent of all active listings on the market. The housing inventory for a luxury home was 11.4 months, 8.4 additional months than that of the Dallas-Fort Worth housing market at large.

 

 

 

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We’ve talked until we’re blue in the face about how brisk the market its for single-family homes in North Texas, and Dallas especially, but the market for condominiums is just as hot according to the 2013 Texas Condominium Sales Report from the Texas Association of Realtors.

We definitely agree, and we noted in November that luxury units are moving quickly, selling units in buildings in Uptown, the Arts District, Downtown, and the Cedars like hotcakes!

Texas’ four major metro areas all showed double-digit increases in condo and townhome sales, said the report featuring data from the Real Estate Center at Texas A&M University. Austin, Dallas, Houston, and San Antonio experienced an average 26 percent increase in condominium sales in  2013, but Dallas led the pack with a huge 38 percent jump in sales, followed by Houston at 25 percent, Austin at 24 percent, and San Antonio at 18 percent.

“Data from the Texas Condominium Sales Report shows that all types of housing are in demand in Texas,” said Shad Bogany, chairman of the Texas Association of Realtors. “Given the rapid job and population growth across Texas’ major metro areas as well as our state’s shrinking housing inventory, it’s no surprise condo sales are playing an increasingly important role in the Texas housing market.”

The report echoes the trends we’ve been noticing in housing here at CandysDirt.com: High demand thanks to a healthy job market is fueling higher prices, and homes are flying off the market, leaving the Dallas Real Estate market feeling like picked-over department store shelves after Black Friday.

“Inventory is at an all-time low for both condominiums and single-family homes, but the development of new condos and townhomes has lagged behind that of single-family homes through the housing recovery” said Jim Gaines, PhD., economist with the Real Estate Center at Texas A&M University. “As a result, we’re at least a year or two away from delivering the condos that are currently needed in Texas’s metro areas.”

Here’s the report for Dallas:

In Dallas, 4,468 condos were sold between January and September 2013. Compared to the same period in 2012, the median price increased 10 percent to $153,000. The number of new listings also increased 10 percent to 6,311, whereas active listings dropped 26 percent to 1,607 listings and pending sales jumped 33 percent to 4,077 year-over-year. Finally, days on the market dropped to 67 days, a 28 percent decrease from the year prior.

You can read the full, city-by-city report right here.

You’d think that rising interest rates would slow the real estate market, but that’s not the case for the Dallas Area. According to Jim Gaines, an economist at the Real Estate Center at Texas A&M University, Dallas-area pre-owned home sales are up 20 percent year-over-year.

In a conversation with Steve Brown, Gaines had this to say:

“I keep thinking it’s going to slow down, but it hasn’t so far,” said Dr. James Gaines, an economist with the Real Estate Center at Texas A&M University. “Yes, the rates are higher and the builders may be feeling it a little, but really, the rates are still very good and don’t seem to be hindering sales much.

“Also, if people expect the rates to continue to increase, they’ll buy now rather than wait.”

Still, even though rates are increasing, fellow Real Estate Center economist Mark Dotzour says Texas needs builders to step up the pace when constructing new homes:

The demand for single-family homes and condos is still outstripping supply. It will take time for home builders to staff up to higher levels of production. It will also take time before there are sufficient construction loans to finance this higher level of activity. In the meantime, inventories of homes for sale are likely to remain at breathtakingly low levels. Expect higher prices in the coming months.

So, with higher prices and higher rates on the horizon, do you think the market will slow?