DFW is crushing Houston, Austin in ultra-luxury sales

Demand trending to high-tech mansions, historic estates in Dallas

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Ebby Halliday’s Johnny Mowad and Compass’ Katie Forney (Ebby Halliday, Katie Forney, Getty)

Dallas-Fort Worth is the ultra-luxury capital of Texas, blazing ahead of the state’s other metros with 11 home sales over $10 million so far this year.

Houston has notched five sales in the ultra-luxury price range, and Austin’s had zero, according to the MetroTex Association of Realtors, Houston Association of Realtors and Compass’ mid-year ultra-luxury report.

DFW’s count exceeds the eight ultra-luxury home sales it had last year, when Houston had seven and Austin had three. 

Houston’s most-expensive home sales trended toward ultra-luxury in July, with sales of two homes that last listed over $10 million. Its luxury market has been on the upswing since its ultra-luxury sales surged 75 percent last year.

The ultra-luxury market is firing on all cylinders, nationally and across Texas, with well-to-do home buyers unperturbed by mortgage rates and economic volatility. Brokers in Dallas and Houston have noticed an increase in all-cash buyers. They historically made up about 15 percent of buyers, but this year they’ve leapt to nearly 26 percent of the DFW market, NAR deputy chief economist Jessica Lautz said. 

DFW’s luxury market has a diverse pool of ultra-high net worth individuals, said Ebby Halliday’s Johnny Mowad, who’s set to be MetroTex’s president next year. Beyond the business-friendly halo Fortune 500 companies envision hovering over the Lone Star State, the Dallas area is also less reliant on a single industry, like oil and gas in Houston or the tech sector in Austin, Mowad said. 

DFW has major logistics and distribution centers, which is part of what drives its robust economy, Mowad said.

One of the most head-turning ultra-luxury sales in Dallas was Raising Cane’s founder Todd Graves’ purchase of a $15 million condo in he under-construction Knox Hotel and Residences, which is being developed by a venture of Michael Dell’s MSD Partners and Dallas-based Trammell Crow Company. Another penthouse in the building is listed at $25 million.

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Ultra-luxury sales in Texas are driven by their locations in exclusive enclaves.

Historic homes with original architecture and charm in areas like Dallas’ Highland Park and Preston Hollow were in high demand in September, especially after modern restorations and smart-home customizations, according to the Institute for Luxury Home Marketing.

However, not every high-end buyer wants smart features, Compass’ Katie Forney said. 

“Houston trends a little bit more toward a quiet luxury,” she said.

Houston’s ultra-luxury home sales have been concentrated in the River Oaks, Tanglewood and Memorial neighborhoods. Forney’s only ever sold ultra-luxury homes in these neighborhoods, she said.

Six of DFW’s 11 ultra-luxury home sales this year were in Highland Park or University Park, and three were in Preston Hollow. Three of the 11 were built in the last five years. 

One sold outside Dallas proper, a rustic-style home on over 500 acres in Ferris, which last listed at $14 million.

Fort Worth is also getting in on the ultra-luxury scene. One of the most-expensive listings last month was a $10 million listing in Fort Worth’s gated Mira Vista community.

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