Million Dollar Home Sales Up 90 Percent in Texas

HOUSTON – (By Dale King, Realty News Report) – The number of homes in Texas bought by folks capable of purchasing luxurious residences with seven-figure price tags – and higher – climbed astronomically in the 12-month period ending in October, saysthe 2021 Texas Luxury Home Sales Report just released by Texas Realtors.

The figure jumped by 89.6 percent statewide compared to the previous reporting period, says the study. In all, 11,980 over-a-million-buck dwellings took down their “For Sale” signs when financially well-heeled buyers signed on the dotted line during the year-long period ending Oct. 31.

While the number of luxury domicile sales accounted for less than 3 percent of all homes sold in Texas, the dollar amount represented 13 percent of the dollar volume of residential sales across the state.

Of the four major metropolitan centers surveyed by the Realtors’ group, the Houston-The Woodlands-Sugar Land MSA came in last – and below the state average — with a 76.8 percent increase in the number of luxury homes sold this year compared to the same period last year.

Still, that percentage is nothing to shed tears about. Texas Realtors said 3,264 homes priced at a million bucks or over sold during the past year in the Houston MSA, bringing in $5.4 billion.  The survey says 13.3 percent of sales dollar volume generated in Houston-The Woodlands-Sugar Land derived from luxury acquisitions.

Actually, the numbers shown in the Realtors’ survey of the Houston MSA began and ended at nearly the same point. The quantity of luxury homes sold in the Space City in November 2020 was 210. For October 2021, the number was just a tad higher, at 258.

In between, the figures variously rose and fell. The 275 million-buck dwellings sold in December 2020 dropped to 121 the following month and 170 in February 2021 – as the COVID pandemic began to heat up.

The numbers started to take flight quickly, hitting a maximum for the year-long period of 393 in June of 2021.  The figure dropped each month for the following three months – 355 for July 2021, 295 for August 2021 and 253 for September 2021. The sale of five additional homes in October led to a month-end tally of 258.

Topping the list of big dollar home purchases in the four major metros was the San Antonio-New Braunfels MSA, where million-dollar housing purchases soared an incredible 122.1 percent compared to the same period a year before. The 622 homes that sold for $1 million or above racked up $918 million in total sales dollars. In all, 6.6 percent of all the residential sales dollar volume in San Antonio-New Braunfels came from luxury buys.

Second to the San Antonio area was the Austin-Round Rock MSA, where million-dollar minimum purchases hit whopping $5.2 billion, a 101.5 percent increase. The residential sales dollar volume in Austin-Round Rock rose 22.7 percent by the time the kids were ready to out for trick-or-treat on Halloween 2021.

Dallas-Fort Worth-Arlington rang in with an 80.7 percent increase in the number of deluxe homes that cajoled folks to write seven-digit checks. A total of 3,818 came off the market via that million dollars-plus route, tallying a tidy sum of $6.6 billion.  In all, 14.3 percent of all residential sales dollar volume in the Dallas-Fort Worth-Arlington MSA came from the sale of upscale residences.

“Home price increases in Texas have led to a strong spike in the number of homes sold in the million-dollar-and-up range,” said Marvin Jolly, chairman of Texas Realtors. “The price increase has shifted the profile of homes that were historically listed in this category.”

“We are seeing more neighborhoods with homes selling for above $1 million,” he added. “In many cases, homes that would have sold for under a million dollars last year are topping that mark this year.”

The annual report examining housing statistics for homes that sold for $1 million or higher across the Lone Star stage showed total sales dollar volume reaching $19.9 billion, a 93.3 percent increase from the previous year.

The Realtors’ report said the median price for Texas luxury homes during the first 10 months of 2021 was $1,360,133, or 0.1 percent more than the previous year. The average price per square foot for luxury homes increased 9.5 percent to $395, more than double the $166 average price per square foot for all residential Texas purchases.

From January to October 2021, luxury homes in Texas spent an average of 55 days on the market, a decrease of 31 days from the same time frame in 2020. On average, luxury homes spend more time on the market than lower-priced homes.

“What defines a million-dollar home,” Jolly concluded, “is rapidly evolving across the state. There is strong demand in the luxury home market in Texas as many buyers from out of state are finding that they can afford a larger or higher-end home compared to the area they came from.”

Dec. 16, 2021 Realty News Report Copyright 2021

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