Luxury Home Sales Defy Market Slowdown, and Double in Austin, TX
While the overall spring housing market has experienced a slow-down in sales, the luxury segment is thriving—especially in Austin, Texas.
According to a recent Realtor.com report, high-end real estate across the U.S. is defying the broader slowdown, with $1 million-plus properties standing out as the fastest-growing segment for nearly two years.
Luxury buyers, less reliant on mortgage financing and often sitting on substantial equity, are keeping the market alive. Danielle Hale, chief economist at Realtor.com, explains that these factors have helped luxury listings outperform more moderately priced homes.
“Higher-end homeowners have substantial equity and are less reliant on mortgage financing. These types of properties have outperformed,” says Danielle.
In Austin, the luxury market is red-hot. For the week ending May 18, 15 new contracts were signed for high-end properties—almost double the eight contracts signed the previous week.
Though the average price dropped 33% week-over-week, the market still commands premium rates—$683 per square foot, with listings sitting an average of 81 days on the market. The luxury threshold in Austin, defined as the 95th percentile price point, was $2.96 million in April, according to the report.
Experts note that Austin’s appeal lies in its blend of economic opportunity and lifestyle perks. Neighborhoods like West Lake Hills are drawing affluent buyers seeking spacious homes and scenic views—without giving up access to downtown. Even high-profile names like Elon Musk have taken interest in the area.
“Austin offers luxury buyers plenty of home options in a bustling town known for its economic opportunities and appealing quality of life,” says Hannah Jones, senior economic research analyst at Realtor.com. “High-priced areas, such as the city of West Lake Hills, has attracted buyers looking for lots of space and idyllic views without sacrificing access to downtown.”
Overall, in a season of uncertainty for much of the housing market, the luxury sector—particularly in Austin—continues to shine.
SOURCES:
High-End Home Sales Show No Sign of Slowing Down—and They’ve Doubled in This Southwest City – Realtor.com
Elon Musk ‘Has Bought $35 Million Three-Mansion Compound’ in Austin Where He Wants To House His 11 Children and Their Mothers – Realtor.com