The buyer’s market, which skipped into Austin, Travis County and the surrounding area last year, is as dynamic in the luxury home segment as it is in condos and lesser priced houses. The supply side of upscale homes above $1 million has ballooned, and the savvy house hunter can find unexpected deals on large properties with luxurious accoutrements.
Austin is one of eight metropolitan regions in which the median price of luxury properties declined in the first quarter of 2024. Sales of these magnificent homes rose by 25%, so buyers are plentiful, along with inventory. The back story involves a pandemic, a lot of restless companies and people, and an upsurge in technology.
Dubbed the Music Capital of the World (among other nicknames), Austin was like a magnet during the 2020-2022 pandemic for many reasons. Interest rates were low. The job market was high, in large part for tech companies expanding as well as relocating in this region. With technology firms entrenched, there are copious entrepreneurial opportunities for the independent minded folks. The climate, tax structure, recreation and largess of Texas are huge attractions to all demographic groups.
Any increase or boom in population gets the attention of national home builders like Ashton Woods and Grand Endeavor Homes. Local home builders, such as Sterling Custom Homes and Verde Builders, also grasp the opportunity. With a 5% increase in population in a relatively short time and many well-heeled working households seeking to showcase their own success, the luxury home market builders embraced the challenge to meet the demand.
Today’s luxury home buyers value high quality workmanship, meticulously sourced finishes, smart home technology and spacious floor plans. Comfort, convenience, privacy, security and the grandeur of space, indoors and outside, drive the luxury market. Floor to ceiling windows have their own smart-ness in smart glass and smart film offering customizable privacy and energy efficiency. Other amenities the multi-million-dollar buyers seek and find, include:
Entertainment media room
Guest suites with private bathrooms
Saltwater and cold plunge pools
Heated floors
Wine cellar
Outdoor kitchen and entertainment spaces
Sweeping views
Private fitness room
Library
Elevator
Multi-car garage
Large gourmet kitchen
Beautiful landscaping
Sauna, hot tub
Dedicated home office
Luxury homes are, perhaps surprisingly, languishing on the market for a year or more. They may well be, perhaps not surprisingly, overpriced for today’s buyer’s market. So, enter the home buyer with deep pockets and a great credit rating seeking upscale amenities in a spacious, well-appointed home. Does “make an offer” sound about right?
Not all of Austin’s luxury homes are new. There are deals to be found in renovated homes 50 and more years old. With quality construction and, as they say, great bones, the renovation results in older homes are spectacular. New homeowners get the character and a prime location, along with high-end appliances, finishes, spaces, windows, gourmet kitchens and spa bathrooms.
West Lake Hills boasts a median home price of $5.2 million. Travis Heights, developed in the 1920s, offers an eclectic blend of new houses and older renovated homes topping $1 million on up to $3 million and $4 million. You can squeak into a condo or buy a fixer upper for a whisker under seven digits in the asking price. It’s not hard to find ranches and expansive properties for more than $15 million.
All the luxury homes on the market have homeowners behind them with plans. Plans to move, downsize, liquidate an estate, go to assisted living, relocate to another state for a job, a future, be near grandkids, start a business, w.h.a.t.e.v.e.r. Holding on to a luxury home one is ready to part with costs money, and the longer it takes to sell, the more money gets eaten up in taxes, insurance, maintenance, etc. Today could be the day you and your real estate professional at Habitat Hunters make an offer and encounter a very good deal on a luxury home, the kind which is too good to pass up.
Food trends come and go, well maybe not Texas BBQ. Fashions change often. This color is in, gray is the new black, and another color has fallen out of favor. But Austin stands proud of its beauty, climate, prestige and culture and will remain a magnet for the adventurous, the techie, the retiree, the entrepreneur, all the modern pioneers who gravitate to the sensational charm of the Capital City of Texas.
