Houston’s Luxury Real Estate Market Is Sizzling This Summer
High-end home sales in Houston have been skyrocketing over the last year, defying all odds and expectations for the niche market’s performance. Houston’s housing market overall is hitting new highs, with the luxury market leading the way.
Houston’s Luxury Housing Market
Houston’s luxury home sales experienced strong growth despite the pandemic thanks to low mortgage rates and changes in day-to-day life. According to the latest numbers, the sales volume for homes priced above $750,000 nearly doubled in March from 2020, a 90% year-over-year increase. This figure captures the rising demand for luxury properties over the past few months, but March’s performance is the highest spike yet. In total, over $4 billion worth of property sales in the luxury market were completed in March alone.
The demand for homes in Houston has driven up the selling price about 20% higher than last year, and home sale volume has also risen about 17% compared to 2020 figures. According to the Texas REALTORS®, the average price per square foot for luxury homes in Texas has also increased, reaching on average $360 per sq. ft. compared to an average of $139 per sq. ft. for all residential properties. In Houston specifically, the average price per sq. ft. hit a new high of $335.
“Several overlapping market forces propelled us to a strong finish in March, between a lack of low-to-mid-range housing and aggressive high-end buying by consumers taking advantage of historically low-interest rates,” said HAR Chairman Richard Miranda in an interview with Keller Williams Platinum.
Another contributing factor in Houston’s luxury market success is that out-of-state buyers looking for high-end properties have discovered they can get more for their money in Texas, particularly compared to the dwindling options available in famously luxurious markets found in New York, California, Washington, and Colorado.
With this impressive growth in mind, what trends have emerged in Houston’s luxury market over the last year?
Houston High-End Home Trends
Styles come and go, but home functionality will always be king. In previous years, the trend of minimalism and the “less is more” approach could be seen in almost every high-end home. Today, open concept rooms are still desired, but after months of quarantining at home, the idea of open concept everything has lost its appeal. Affluent buyers are making health-driven lifestyle choices that are reflected in how they use their homes. As such, here are the Luxury Home trends heading into 2021:
- More space for home office, home gym, or kid’s playroom
- Modular walls for flexible functionality
- Green HVAC, plumbing, and electrical systems
- Outdoor entertainment spaces
Luxury Real Estate Market
Are you daydreaming about touring and selling impeccable, luxury properties? Becoming a luxury real estate agent isn’t impossible, but it does take a lot of hard work and dedication to serve clients whose time is quite literally money. Understandably, then, mastering this market requires significant patience and a solid work ethic.
Each property is unique, and it requires vision to highlight the one-of-a-kind features found in the home. It’s also worth noting that, while the commission checks tend to be larger for luxury real estate agents, they’re also less frequent. These glamorous homes often appeal to a smaller audience who typically take years to locate and then successfully navigate the purchasing process.
If you’re interested in becoming a luxury real estate agent, we have a guide to help you break into this lucrative niche here.