Shocker—Austin’s luxury real estate market is booming but after an especially fruitful year, the capital city is joining the big leagues for high-priced homes.

According to a study comparing industry-wide sales activity done by real estate agency Compass, Austin saw a 450% increase in $10 million-plus real estate transactions from 2020-2021, placing it among the 30 highest-value markets in the U.S.

With 11 total transactions totaling $189 million, the sales volume in Austin jumped 562% since 2020, putting the city markedly higher than major cities like Philadelphia, Pennsylvania; Jersey Shore, New Jersey; Long Island, New York, and Washington D.C.

Dallas was the only other Texas city to be included on the list and nearly mirrored Austin’s luxury real estate activity but ultimately came in lower in terms of total sales volume. With 10 total transactions above $10 million from 2020-2021, Dallas sold $115 million worth of houses and saw growth of about 66-68%.

However, Dallas prevailed out of the most expensive sold Compass listing at $11.9 million, whereas Austin’s most expensive listing capped at $11.6 million.

According to local agents Dara Allen and Gary Dolch, local luxury real estate has historically been concentrated along Lake Austin but is starting to spread out into areas like downtown and the suburbs. More luxury properties in diverse areas are expected to be listed on the Multiple Listing Service than ever before, which Allen said can be attributed to work-from-home.

“The prioritization of more square footage, larger lots, luxury amenities, and privacy is sending buyers as far out as Spanish Oaks and Dripping Springs,” Allen said. “People are spending more time at home and need space for sometimes even multiple home offices. Moreover, sellers are still holding tight despite their homes being worth more than they ever have been, and buyers are coming from surprising places.”

Dolch said Austin will continue to see growth from its feeder markets: California, New York, Chicago and Florida on account of the low-interest rates and ever-growing local tech and cryptocurrency markets.

“We are forecasting that our luxury market in Austin takes another leg up with 20%+ appreciation year over year,” Dolch said. “As good as it has been here, we think we’re still in the early days with at least a five-year runway ahead of us. Especially in executive estates, waterfront, and ranch properties which make up the majority of our current $200 million-plus listing portfolio.”

Source: Austonia 

Posted by Grossman & Jones Group on


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