State of Luxury

The Austin real estate market has fared exceedingly well despite the national downturn that began in 2006. Even during the recession, homeowners continued to invest in residential real estate, shifting their dollars to improving existing homes with large-scale renovation projects. This year to date, we have seen a significant upswing in Austin-area MLS sales activity, as reported by Heritage Title. In fact, by the end of May of this year, volume in the $2 million plus category surpassed the total sales in 2010. As of August 2011, more than $106 million in sales have closed.

Today, many homeowners who have sold their suburban homes are opting to purchase or redevelop (tear down) in Tarrytown, Pemberton and close-in Westlake, the areas experiencing the largest increase in sales. Of course, the Lake Austin market, which includes a number of people looking to build new homes on lots or redevelopment sites, remains strong.

The relatively new trend of moving from suburban neighborhoods to more central locations extends to downtown Austin luxury condos. An estimated 62 percent of the condo units in luxury high-rises that opened in 2010 and 2011 have closed as of the end of August 2011. Over the next two to three years, the demand for downtown Austin condos is expected to outstrip supply. At the moment, there are no new high-rise condos under construction in downtown Austin, and it takes two to three years to build a high rise. More information about downtown Austin condos is available here.

As Austin grows, so do the luxury home sales in both traditional and urban neighborhoods connected to the city center, such as Tarrytown and close-in. Because a significant number of these sought-after homes are private sales listings, experience in this realm is critical. A recent study of Moreland sales reports and public MLS data showed that the majority of sales transactions in the $3 million plus category in 2011 to date were brokered outside of MLS and, therefore, did not appear in the MLS reporting. A few private listings in Tarrytown and Westlake follow.