| Austin not well known for luxury real estate - yet, but | | | | are FM 2222 and Southwest Parkway. This area |
| there definitely is a market for luxury real estate in the | | | | includes West Lake Hills and the area that follows the |
| Austin area. By luxury, I am specifically talking about | | | | Colorado River Valley. This area is the same for sales |
| single-family homes that sell for over $1 million. When | | | | in 2007 and 2008 and almost half of these homes are |
| talking about Austin, the area is a 5 county area that | | | | located in the hills between Mopac and Loop 360. |
| includes the Austin metro area. | | | | Others are scattered out toward and on Lake Travis. |
| As of today, July 2, 2008 there are 608 homes over | | | | For homes that sold between $1 million and $2 million, |
| $1 million on the market in the Austin area with 78 of | | | | both time periods show the same pattern. They are |
| those being over $3 million and 6 over $10 million. One | | | | generally located in the same area as the more |
| of these is actually a 895 acre ranch in Blanco County | | | | expensive homes, with a few being in more outlying |
| so I will discount that as an Austin luxury home listing. | | | | areas. The largest concentration of these luxury |
| There are currently 30 luxury homes under contract. | | | | homes is between Mopac Expressway and Loop 360 |
| That gives the area roughly an 11 month supply of | | | | and just west of Loop 360. The second most |
| homes for sale for over $1 million. | | | | concentrated area was on or near Lake Travis. |
| Between January 1, 2008 and July 1, 2008, 113 luxury | | | | There is a good reason that the expensive homes are |
| homes sold in the Austin area. Of these, 92 of the sold | | | | located where they are. The area just to the west of |
| homes sold for less than $2 million. The most | | | | downtown Austin is dramatically hilly. I drove to the top |
| expensive luxury home sold during this time sold for | | | | of one street less than three miles west of the capitol |
| $4,350,000. For the same time period in 2007, 163 | | | | and it seemed that I was almost eye level with the top |
| luxury homes sold. Of these, 136 sold for under $2 | | | | of the 32 story Frost Bank building in downtown Austin, |
| million. The average price of a home under $2 million | | | | which is over 500 feet tall. So reason number 1 is |
| was around $1,353,000, or $300.86 per square foot. | | | | some very dramatic view of the city. |
| That compares to figures of $1,353,500 and $318.68 | | | | Lake Austin runs through the Colorado River Valley |
| for 2008. The first half of 2007 was healthy and the | | | | from Mansfield Dam, which holds Lake Travis back, to |
| credit crunch had not hit. Home sales were stronger | | | | just west of the downtown Austin area. Looking down |
| than 2008. However, we are not seeing what people | | | | on the lake offers very dramatic views, with some |
| thought we might see - declining prices. The number of | | | | areas being 300 feet higher than the lake. So reason |
| luxury homes sold so far in 2008 is down, the prices | | | | number 2 is the view again. By the way, these |
| are up. | | | | reasons are not ranked in order of importance. |
| Let's look at the more expensive homes that have | | | | Speaking of Lake Austin, how about a house on the |
| sold. For the same time period being discussed in 2007, | | | | lake? The least expensive home on Lake Austin right |
| there were 27 luxury homes sold in the Austin area | | | | now is $1.25 million, but it is on more of a canal without |
| for more than $2 million. I am leaving one out that sold | | | | a view of the actual lake. To get actual lake frontage, |
| for $12 million as it sat on over 350 acres. The | | | | current listings start at $2.2 million and go up to $12.8 |
| average price for homes that sold over $2 million was | | | | million. |
| $3,137,500, which was just over $453 per square foot. | | | | Moving on to other areas, Lake Travis is just |
| For the same period in 2008, 21 homes have sold for | | | | gorgeous. With limestone walls, the water is a dramatic |
| over $2 million. The average price for homes that sold | | | | blue to blue-green color. It is 63 miles long and 4 miles |
| over $2 million was $2,701,000, which was just over | | | | wide at its widest point. Lake Travis has become very |
| $430 per square foot. So it looks like the more | | | | expensive over time as it has gained in popularity and |
| expensive end of the luxury market has felt a bit of a | | | | had fewer waterfront lots available. |
| pinch, but nothing overly dramatic. As a side note, the | | | | There are other areas that are exclusive just for what |
| fun thing for me is that I sold the second highest priced | | | | they are. The large subdivision of Barton Creek has |
| home in the area in 2007. | | | | two very private, gated communities with huge, |
| So now you are wondering where these homes are. | | | | expensive homes. These are the areas of Mirador |
| For the more expensive homes, look at the area | | | | and Escala. Many of the homes in these areas never |
| bordered on the east by Mopac Expressway and | | | | make it into the MLS because they are custom builds. |
| going out to Lake Travis east of Briarcliff as the | | | | Both areas offer either large lots with privacy, views |
| western edge. The northern and southern boundaries | | | | of downtown or both. |