Luxury home sales continued to be one of the fastest growing housing segments in the state's largest markets in 2015, according to a new report from the Texas Association of Realtors,
The 2016 Texas Luxury Home Sales Report cited sales volume increases from 4.5 percent to 36.4 percent for homes sold at $1 million or more in the state's four major markets.
"A popular trend for homebuyers in this price class is to purchase homes on smaller lots, but in more desirable locations and with higher-end amenities," the report states.
Houston had the highest volume of luxury sales statewide (1,284 sold), a 4.5 percent increase from 2014. The median price was $1,395,000 — an .4 percent increase from the previous year.
The price per square foot for a home in Houston in the $1 million and up price class is $333 — three times higher than the average home per square foot. But it took 78 days to sell a luxury home in Houston — 29 days longer to sell than the average Houston home.
Texas' three other largest housing markets — Dallas-Fort Worth, Austin, and San Antonio — also saw a major uptick in luxury home sales, which can be attributed to the state's rising prices.
"Rising home prices across the state are also pushing more higher-end homes into the luxury market. Many homes priced in the $800,000 to $900,000 range a few years ago will now sell for more than a million," Jim Gaines, an economist with the Real Estate Center at Texas A&M University, explained in a statement.
Dallas-Fort Worth experienced a 12.4 percent increase in sales and had the most expensive luxury homes ($1.4 million on average) overall.
Austin home sales reached a record high in 2015, thanks in no small part to million-dollar listings. Austin experienced an astounding 16.3 percent increase in sales of luxury homes in 2015.
Luxury homes in San Antonio made up a tiny 0.5 percent of the city's sales, but the market saw a 36.4 percent increase in luxury home sales from the previous year.