Are you wondering what the luxury home market is doing in Dallas? How were the sales in the last 12 months? In this article, you’ll discover why the market is going as expected and why it’s the right time to consider buying a luxury Dallas home for sale. Dallas home values are solid and luxury homes are undoubtedly available, for those who are ready.
Luxury Market on the Rise
Despite a worldwide pandemic and growing concerns over the U.S. economy, luxury home sales have had consistent growth in Dallas-Fort Worth. In fact, sales for luxury homes in the entire state hit $10.3 billion in 2020 and there does not appear to be any reason why that number won’t only grow in 2021. Homes that sold for at least $1 million in 2020 resulted in 23.5 percent growth, according to a recent Texas Luxury Home Sales Report, which was released by Texas Realtors.
Dallas luxury home sales contributed 2,130 multi-million dollar units towards the growth and totaled more than a billion dollars in home values. Austin was the top-tier for sales with a 41.4 percent increase. Statewide, more than 5,000 properties sold at a price tag of $1 million or more. According to Texas Realtors, the last 12 months resulted in 6,347 multi-million dollar home sales.
Expected Economic Outcome
The expectancy of the continued sales growth of luxury homes is due to many opportunities occurring throughout the country that realtors believe could be a pivotal moment in the housing industry, beginning with the expected federal stimulus money that is forecasted to enrich the economy. If implemented studiously, the money could affect long-term sales in Dallas for many years.
With investors looking for the green light to spend more money to buy investment properties, while the market is hot, the encouraging news about the $1.9 trillion coronavirus relief package making its way through Congress is a good sign for Dallas luxury homes sales and the entire housing market.
Optimistic Buyers Relocating
Many of the luxury Dallas homes for sale are from business owners who can take advantage of the strong job market. Although they are affected by the same issues that homeowners face, the favorable job market remains consistent for continued revenue growth in 2021. As a result of the many social unrest concerns throughout the nation, as well as deep concerns regarding climate-change issues causing wildfires and other weather-related challenges, people are finding that Dallas is a good place to relocate.
Dallas luxury home sales are positioned incredibly well for residential buyers and investors alike. According to Marvin Jolly, chairman of the Realtors Group, “Buyers of high-end properties are finding they can buy more for their money, particularly when compared to many real estate markets in New York, California and other pricier areas.” Another factor is that mortgage rates are extremely low and that presents a golden opportunity for buyers who are looking where to move Dallas, in particular.
High Profile Elite Neighborhoods
Areas such as Preston Hollow, Highland Park, University Park, Lakewood, and Southlake are pristine locations to invest in. The recent data for home sales in the North Texas market not only indicate that Dallas home values are stable, but buyers are also able to close quickly due to listing prices that are in line with market values. Savvy agents can facilitate sales timely and create market plans to ensure that sellers can take advantage of the extraordinary demand during this time for buyers.
For instance, the most recent data shows that 171 homes in Highland Park were sold at an average price of $2.3 million. In University Park, 302 homes were sold, totaling an average value of $518 million. Preston Hollow peaked at 755 home sales, averaging a total value of $985 million. The average price for a home purchase in Southlake (Tarrant County) was about $1 million.
Most Expensive Homes Recently Sold
Until recently, most multi-million dollar homes were staying on the market for a considerable length of time. However, the market has been on a slight upswing and more sellers are taking notice. The below 10 most expensive homes that sold in the last 90 days are a prime example of why the trend will more than likely continue in 2021.
- 3805 Mcfarlin Blvd, University Park, 75205 – Sold 12/15/2020
- 10203 Hollow Way Rd, Dallas, 75229 – Sold 1/20/2021
- 2300 Wolf St 17AB, Dallas, 75201 – Sold 2/16/2021
- 2006 Navasota Cv, Westlake, 76262 – Sold 12/31/2020
- 4656 Meadowood Rd, Dallas, 75220 – Sold 12/22/2020
- 3414 Beverly Dr, Highland Park, 75205 – Sold 1/29/2021
- 5142 Stonegate Rd, Dallas, 75209 – Sold 1/13/2021
- 542 Old Authon Rd, Weatherford, 76088 – Sold 12/1/2021
- 5109 Radbrook Pl, Dallas, 75220 – Sold 12/23/2020
- 1114 Post Oak Pl, Westlake, 76262 – Sold 1/8/2021
Each of these homes indicates a market trend that luxury buyers can rely on as the economy slowly begins to turn around. The Days on Market (DOM) are shortening, which is a true indicator that it’s a buyers’ market. The DOM in the Dallas-Fort Worth area had a decrease from 91.62 to 89.35, according to December statistics.
While there is some hesitancy from sellers to put their home on the market during a health crisis, there isn’t a shortage of buyers who are ready, willing and able to take the plunge. Real Estate experts typically advise at least a six-month supply of listings, and agents are currently seeing about a 1.4-month supply. The good news is that luxury home buyers are eager and willing to go the distance, which should sway sellers to list their homes without further hesitation.
As in most cases that involve economic recovery, the only way to stabilize the economy is by taking calculated risks and choosing to ride out the uncertainty. The time is now to begin the painstaking process and make choices that reflect confidence in the housing market. Dallas houses are no exception to the general rule that it’s still about location, location, location.