Dip in Texas’ Luxury Home Market: A 2023 Insight

From November 2022 to October 2023, the Lone Star State witnessed a marked decline in the number of homes sold for $1 million or more. Contrasted with the previous year’s figures, there was a noticeable drop of 16 percent in this segment. The total sales of these high-end properties equated to around 3.6 percent of total sales, mirroring the percentage observed the year prior. A whopping 11,780 sales were recorded which added up to a handsome $19.5 billion in terms of activity.

The price point per square foot of residences well over the million-dollar mark also saw a reduction from $423 last year to $409 this year. However, the price significantly outweighs the $189 average cost per square foot of houses across Texas. Approximately 90 percent of these lavish home sales took place in Texas’ big four city metros. Market residence times have a slightly upward shift with properties spending an average of 58 days on the market, as compared to 47 days the previous year.

Inventory is crucial in the property market. Evaluating the months of inventory in the $1 million+ price range, which essentially examines the time it would take to sell all homes enlisted for sale at the current turn-over rate, showed an increase. Figures moved from 4.7 months in October 2022 to 7.6 months in October 2023.