As a result of wealthy Mexicans and Eagle Ford Shale millionaires helping drive the luxury home market in Texas, San Antonia luxury real estate has seen a dramatic increase to the point of outperforming the rest of the housing markets in the state.
Custom home builders have started more million dollar spec homes which are built on speculation before an exact buyer has come around. In addition to that, statistics are starting to show that in luxury neighborhoods, the most expensive homes are selling faster than the cheaper ones.
According to Research Economist with the Real Estate Center of Texas A&M University James Gaines, “Who are the most recession-proof? High-income people. Who can more easily qualify for loans? Who can come up with more equity? The world is not egalitarian. That end is going to be more active than the lower end of the market.”
The median (or average) price for a home in San Antonio has increased nearly 2% for the entire year but it has also increased 3.3% in the $750,000 + category according to Jason Glast of Keller Williams Luxury International.
Cordillera Ranch, located in Boerne, saw a total of 35 homes begin construction with an additional 20 having submitted plans for approval. The average price of each house, not including the lot where it will be constructed, is nearly $1 million per home according to Vice President of Cordillera Ranch Development Corporation. Hill also added, “In every unit the most expensive stuff sells first. It’s staggering. The bigger challenge for us is going to be to get the builders going quickly enough.”
In addition to an increase in luxury home sales, the San Antonio region has also seen an increase in both oil shale wealth and ranch sales, both of which are doing very well in this tough economy.
Source: chron.com – Luxury real estate booms in San Antonio