a wealth of luxury offerings
Houston's ultra-luxury real estate market explodes with top sales growth in U.S. of homes valued $10M or more
Luxury home sales in Houston have grown by a monumental 200 percent for the first half of 2023, according to the new mid-year report by Compass Luxury. This staggering growth indicates a new trend for the city's impressive and explosive real estate market despite recent economic troubles and limited housing inventory.
Houston ranked at the top with Dallas-Fort Worth on Compass' list of ultra-luxury real estate markets — meaning homes selling for $10 million or more — during the first six months of the year. There were 13 total markets that had more transactions surpassing the $10 million mark in this time period than this same time last year.
For some perspective, Compass' data says there were three homes in Houston that together sold for a total of $31.5 million during Q1 and Q2 of this year. That's compared to just one sale in 2022 at $15.98 million.
Dallas-Fort Worth barely edged Houston out of the No. 1 spot in the report with a higher sales volume of $43.79 for the same number of sales in Q1 and Q2.
The report says high-earning buyers are seeking homes in Houston thanks to low taxes and the city's vacation destination status. But it's the city's dynamic culture, education and medical institutions that are major draws for the ultra-luxurious crowd, according to Compass real estate agent Dee Dee Guggenheim Howes.
"Our city offers economic prosperity, cultural richness, and diverse architecture, irresistible to those seeking the epitome of fine living," she said. "As the population increases, so does the demand for amenity-rich luxury listings. From spa-like retreats, lush outdoor living spaces, and private sports facilities, to tasting rooms, gourmet kitchens, and exquisitely designed wet bars, ultra-luxury buyers expect the best."
Laura Sweeney, another Compass real estate agent and native Houstonian, predicts a continuation of the strong growth in Houston's real estate market for the duration of 2023.
"The overall market has leveled off some with rising interest rates and fluctuations in consumer confidence; however, inventory has remained low and people who need a house are still buying," Sweeney said. "Demand has even created multiple offer situations and pushed prices upward for special properties."
The top 10 real estate markets with transactions over $10 million for the first half of 2023 are:
- No. 1 – Dallas-Fort Worth (200 percent)
- No. 2 – Houston (200 percent)
- No. 3 – Boulder, Colorado (100 percent)
- No. 4 – Jackson Hole, Wyoming (60 percent)
- No. 5 – Greater Seattle (55.5 percent)
- No. 6 – Martha's Vineyard, Massachusetts (50 percent)
- No. 7 – Westchester County, New York (50 percent)
- No. 8 – Greater Boston (42.8 percent)
- No. 9 – City of Boston (40 percent)
- No. 10 – Wine Country, California (25 percent)
The full mid-year ultra-luxury real estate report can be found on Compass Luxury's website.