Eight-figure price points are becoming more common in Texas.
Four homes sold for over $10 million in Houston last year, according to Multiple Listing Service data. And two more sales have crossed that price point this year, the Houston Chronicle reported, citing a report from Compass and the Houston Association of Realtors.
Austin had three sales over $10 million last year, totalling almost $52 million. The capital city has had one sale this year over $11 million.
In Dallas-Fort Worth, there was one $11 million sale in 2022, and the metro has already had three $10 million-plus sales this year, totaling almost $44 million.
Five years ago, there were no single-family listings north of $10 million.
“In the past, seeing houses sell over $10 million in Houston was very rare. And now it’s becoming not uncommon,” Compass agent Mike Mahlstedt told the outlet. “Even though those numbers — (a few) for half of the year — don’t seem significant, when we’re used to zero, that’s a pretty big thing.”
Despite a 21 percent drop in home sales above $1 million halfway through 2023, Houston also experienced a 200 percent surge in ultra-luxury transactions, including single-family homes and residential lots, marking the nation’s most significant percentage gains, along with DFW, according to Compass.
Factors fueling this trend include Texas’ tax-friendly environment, population influx, and increased wealth among affluent Texans. Oil price surges in recent years have boosted the net worth of energy executives and investors, contributing to Houston’s status as the nation’s fifth-largest city in terms of millionaires.
While Houston may not outpace ultra-luxury markets in cities like New York, Miami and Los Angeles, experts predict a steady climb in high-end property deals.
“The wealth has exploded in the top 1 percent over the last few years, and so when you look at the amount of wealth that’s been accumulated, (real estate) is still incredibly cheap especially in areas like Houston,” Douglas Elliman’s David Gross told the outlet. “People are getting more comfortable with spending this type of money on homes.”
—Quinn Donoghue
Read more
Residential
Houston
Houston mansion fetches $21M
Residential
Houston
Jaw-dropping Houston mansion lists at $36M
Residential
Texas
DFW, Austin crowned ultra luxury queens