A million-dollar home in Texas ain’t what it used to be.
Texas homes that sold for $1 million or more between November 2021 and October 2022 increased by 17%, compared to the same period of the year prior, according to a joint report from Texas REALTORS and the Texas Real Estate Research Center at Texas A&M University.
A total of 13,998 high-end sales were completed during this period, totaling $22.6 billion, according to the report.
Dallas-Fort Worth had the largest number of million-dollar home sales over the same period at 4,689, a 23% year-over-year increase. Austin saw 3,564-million-dollar home sales, while Houston had 3,527, San Antonio had 776, and the rest of Texas combined had 1,442.
‘“The profile of a home sold for a million dollars or higher has changed with the high demand for Texas real estate over the past few years,” Marcus Phipps, chairman of Texas REALTORS, said in a statement.
“In some areas, one million dollars will buy a large home with lots of bedrooms and bathrooms and many luxury features, but in others, the value of the location itself is high enough to push more modest homes over the million-dollar mark.”
Million-dollar home sales represented 3.6% of all homes sold in Texas during the period, up from 0.8% a year prior. These high-value homes comprised 14.2% of the total dollar volume of all residential sales in the state.
In the first 10 months of 2022, million-dollar homes sold for a median price of $1.3 million, according to Texas REALTORS.
The typical million-dollar home sold last year in Dallas-Fort Worth was built in 2007 and sold after 44 days on the market.
The increase in million-dollar home sales in DFW came after home prices skyrocketed by over 50% in the past few years due to a “severe lack of available inventory amid red-hot demand,” according to The Dallas Morning News.
“A house that was $750,000 two years ago is now selling for a million or more, and they are not building in the low end of the market.
“This is a product of natural organic price increases. There are more homes that are worth a million or more in Texas,” Cliff Freeman, who manages 110 agents at eXp Realty, told The Dallas Express.
“You’re getting less house for a million dollars today. Just because home prices are up, it doesn’t mean people are buying nicer houses. We’re not all upgrading our houses here. We have to pay more for less house now.”