aIf you've been following the luxury boom during the pandemic, you won't be surprised to learn that ultra-luxury real estate continues to grow year over year in America. And if you've been paying attention to Texas' recent rapid growth, you won't be surprised to hear that the Dallas, Austin, and Houston markets rank highly among those markets.
With the recent release of Compass' 2023 Ultra Luxury Report, the Realtor highlighted 23 thriving markets that contributed to 1,560 transactions of $10 million or more during the year. While Palm Springs and Boston are booming, Manhattan has been named America's number one market. But cities like Boulder and Dallas are also gaining attention, with the latter actually seeing a 125% increase in sales of more than $10 million compared to 2022.
The 2023 Ultra Luxury Report states, “To decipher the synergies between wealth and ultra-luxury real estate, the data collected and analyzed by Compass Luxury for the report is essential.” “Where and how the ultra-wealthy choose to live has a huge impact on both their specific communities and our nation’s economy as a whole.”
Ahead of this, we detailed the most important Texas takeaways from the 2023 Ultra Luxury Report and Compass' real estate predictions for the year ahead.
First, ultra-luxury real estate trends for 2023 and 2024.
– Agents reported a notable increase in all-cash offers in 2023 due to soaring interest rates.
– Architecturally significant homes will continue to be important to ultra-luxury buyers in 2023.
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– Wellness-oriented amenities such as cold plunge pools and infrared saunas are becoming increasingly popular in ultra-luxury properties and will continue to be popular in 2024.
– Outdoor gathering spaces are still of great interest to wealthy buyers, especially when combined with things like sports courts.
2023 Austin Ultra Luxury Real Estate Report
Of the three Texas markets that made the 2023 Ultra Luxury Report, Austin was the only city to report a sales decline of more than $10 million last year (down 23.46% from 2022). But local luxury goods agent Vince Heinz is optimistic about a turnaround in 2024.
“Buyers were very patient in the second half of 2023, creating significant pent-up demand,” Heinz said. “We expect this demand to increase further due to expected lower interest rates and continued inventory shortages. As a result, high-quality homes are likely to command a premium, and high-value homes quickly become more expensive.” is expected to rise.”
Local agents also note the diverse mix of domestic and international buyers, many of whom have technology and entrepreneurial backgrounds.
“We expect performance in the ultra-luxury segment to stabilize in 2024 as bespoke design and wellness-oriented amenities become more prevalent,” said Michelle Dolch of Austin Luxury Group.
Highest priced Austin homes for sale in 2023 at Compass Represented Real Estate.: $10.05
Austin homes sold in 2023 for $10 million or more: 3
2023 Dallas-Fort Worth Ultra Luxury Real Estate Report
Of the three Texas markets featured in Compass' ultra-luxury report, Dallas-Fort Worth real estate took the top spot.
“Homes priced over $10 million are selling relatively quickly compared to previous years, reflecting continued interest from high-net-worth individuals who recognize Dallas real estate as a solid investment.” says the Dallas agent. Tom Hughes. “Looking forward, the North Texas ultra-luxury market is expected to maintain its momentum, and as interest rates continue to rise, demand for luxury real estate is likely to continue to grow.”
In terms of trends, agents noted an interest in private theaters and enhanced wellness amenities, as well as an affinity for projects currently in development.
“The most popular product in Park City and Preston Hollow is luxury new construction. Building in the current environment requires lead time, so many buyers are opting for builder-developed projects.” said Kristin Danazer, a Dallas agent. “2023 began with the sale of 3900 Potomac, his quality new construction property listed for $13.9 million in the heart of Highland Park.”
Top-priced Dallas homes for sale in 2023 with Compass-represented properties: $15.55 million
Dallas homes sold for $10 million or more in 2023: 8
2023 Houston Ultra Luxury Real Estate Report
Luxury real estate sales are also growing in Houston (up nearly 20% from 2022), and several Texas agents are noting the city's resilience.
“Houston's ultra-luxury market is undergoing a remarkable transformation,” said local agent Caroline Bean. “Looking back on this year, it is clear that Houston’s ultra-luxury real estate market has evolved to meet the demands of a dynamically growing population and poised for an exciting future in the luxury housing sector.”
Local luxury real estate agent Dee Dee Guggenheim Hawes also cited the unique marketing strategy that is helping to attract high-net-worth international clients to the city. “Advertising on private jets and yachts around the world emphasizes that Houston is a great place where world-renowned architects, builders and designers are building luxury homes.” Guggenheim Hawes said.
Highest price sale of Houston homes for real estate represented by Compass in 2023: $12.75
Houston homes for sale in 2023 for $10 million or more: 7
Where Texans Are Buying Second Homes
By 2023, both California and Colorado will be home to wealthy Texans. Healdsburg's luxury market, which includes condos and luxury Montage properties in Sonoma County's trendy Mill District, attracted global attention, but most U.S. buyers were from New England, California, and Texas. Ta.
Texans had a special affinity for the trendy mountain town of Telluride, home to penthouses, custom homes, and mountain village mansions.
“From a demographic perspective, the largest concentration of ultra-luxury buyers was in the Texas markets of Houston and Dallas, followed by large sales from Los Angeles, New York, Scottsdale and South Florida.” says founder Bill Fandel. Telluride Compass Brokers.
