After a year-long slump in sales volume amid softening home prices, the Houston luxury market is showing signs of revival. According to the Houston Association of Realtors, sales of single-family homes priced at $500,000 and above surged by 5.8% during August 2016.
As a whole, existing home sales totaled 6,815 in August, up 8.2% year-over-year. The average sales price rose 3.4%.
The fresh sales momentum is welcome news for Houston’s luxury home sellers, who have endured weakening prices and longer days-on-market for the past several months. However, energy sector declines continue to affect portions of the luxury market, and not every neighborhood is experiencing a sales rebound. For example, luxury home sales in the Memorial neighborhoods are doing a bit better than those located in Katy.
Long-term, Houston’s luxury real estate market has reason for optimism. According to the Houston Business Journal, new residents continue to be drawn to the city, despite the energy sector downturn. Houston added 159,000 new residents last year, and the city’s economy keeps growing, thanks to advances in the medical, petrochemical and shipping industries.
For the balance of 2016, luxury home sellers should continue to remain patient and flexible. Sellers at the top strata of the market should keep in mind that it can take 1 to 3 years to sell a multi-million dollar home, depending on the location, lifestyle, amenities and material qualities it presents. Of course, each local real estate market is unique, and each luxury home must be evaluated according to its distinctions. Obtaining the expert advice of an experienced luxury real estate agent is your first step for a successful sale.
Contact us today for your personal luxury real estate consultation!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079