Dallas/Fort Worth, Texas, region sees luxury home sales for 2013 up 22% from 2012 as employment and per-capita income improve; sales of homes valuing US$1M and above rise to 1.1% of sales in the region, with market overall up 19%
January 22, 2014
– Prudential Texas Properties reports that one of the fastest-growing segments in the Dallas/Fort Worth housing market in 2013 was luxury home sales, which saw a 22 percent increase year-over-year in residences worth more than $1 million, and totaled 1.1 percent of all home sales in the region.
Dallas’ resilience and strength in this slowly improving job market and economy shows that Texans are tough and ready to take the lead in the recovery.
Home buyers in the Dallas-area are no strangers to the phrase “Everything is Bigger in Texas” as people from all over are flocking to the massive real estate that embodies the state’s slogan so precisely. It’s no secret that the market is simply booming in North Texas, so it’s unsurprising that people are cashing in on the outstanding luxury real estate in the Dallas-Fort Worth area before it goes out of style. As luxury homes made up one of the fastest-growing segments of the housing market in 2013 throughout the state, the traditionally small pool of individuals seeking lavish homes was bursting at the seams.
Prudential Texas Properties reports that between January and October of 2013, 809 luxury homes--those $1 million and above--were sold. According to a report from the Texas Association of Realtors and Texas A&M’s Real Estate Center, sales of high-end homes increased 22 percent year-over-year, making up 1.1 percent of total sales in the region. Overall the market increased year-over-year by 19 percent.
California-based real estate analytics company Altos Research reported that the average price of homes in the upper tier in Dallas rose rapidly between January and July, spiking from just above $1 million to nearly $1.5 million. Since July, the Market Action Index, which calculates whether the market leans toward buyers or sellers, for high-end properties hugged closely to the neutral zone, showing the market was fairly balanced.
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Economic growth and stability played a huge role in the desirability of luxury homes for sale in Dallas, and the forecast for the Big D only looks to bring in similar buyers. In 2013, Dallas was named No. 1 in Forbes magazine’s Best Cities for Good Jobs based on data collected from Moody’s Analytics, anticipated job growth, the local unemployment rate and current and expected income per-capita. Good news for Dallas job seekers didn’t end there in 2013. The TechAmerica Foundation named Texas second in the nation for employment in high-tech industries with the Dallas/Fort Worth region dominating the state.
As DD Flynn, VP of Marketing with Prudential Texas Properties says: “Dallas’ resilience and strength in this slowly improving job market and economy shows that Texans are tough and ready to take the lead in the recovery. The market is topping numerous charts and bringing in a high volume of demand from both locals and out-of-staters. 2014 is going to be an exciting year here in the Lone Star State.”
After the seasonal lull is taken over by spring real estate fever, single-family home starts in Dallas/Fort Worth will get a boost once again, but it’s unlikely it will be as frenzied as 2013, as stated by the Dallas Morning News. Unlike the massive 20 percent boom in new constructions in 2013, its much more probable to see a 10 to 15 percent boost this year. Spring and summer will still see median home value increases and high demand with the potential to see a 6 to 8 percent increase in total existing home sales.
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