Luxury buyers have permanently transformed the Austin real estate landscape.”

The ultra-luxury buyer in Austin, oftentimes coming from California or New York, usually seeks waterfront or scenic properties with land and privacy. With our limited supply, these buyers find it prudent to claim their stake in a city projected to double in size by 2050. Typically flush with cash from sales of luxury properties in higher priced markets and from recent net worth increases in the US, (~19% YOY in Q121), these luxury buyers have permanently transformed the Austin real estate landscape. While a $6 million sale was noteworthy in 2019, price ceilings continued to be shattered in 2021. The public was awed with the announcement of the highest sale known to date, a Lake Austin estate listed at $38.9 million*. In the ongoing frenzy of early 2022, I had a buyer going after a $70 million listing on the private market. However, the extremely generous offer was declined because the seller struggled to find a new home. Now in 2023, I believe luxury sellers and buyers will have an opportunity to find their place in Austin as many sit on their hands contemplating their next moves.”

Monica Fabbio

2022 continued to be a banner year for the high-end luxury market in Austin with most transactions occurring off-market. Things are picking up as we head into Q1 and Q2 of 2023. Austin remains a high-demand destination for those who seek both more space and more favorable tax situations, with buyers coming from California, NY, Canada, Chicago, Boston, Georgia and even Europe. Plus, interest rate fluctuations do not tend to inhibit the ability of luxury buyers to purchase these luxury properties. Several of my clients bought $10 million-plus homes in various areas of Austin with lakefront, gated communities being of importance to them, and also 50-500-acre ranch properties in our beautiful Hill Country. Space continues to be a driving factor for those who can afford it. I believe that Austin will continue to be a destination of choice for many luxury buyers in the years to come.”

Dara Allen