Austin Housing Market Among Leaders in Luxury Home Sales

The Texas condo market is hot because it caters to all classes.

Conversely, the area’s luxury housing market is hot because those who can afford large dwellings are taking out mortgages in the state at a record-breaking pace.

In its January issue, Unique Homes Magazine listed what its editors expect will be the top 25 luxury housing markets for 2007. Austin ranked No. 5 on the list, beating out places such as Beverly Hills and the Manhattan housing market, which ranked seventh and 10th, respectively.

“Lots of untapped potential for luxury exists in this Texas Hill Country city, which posted record gains for much of 2006,” editors wrote in describing what helped Austin make the list. “The University of Texas, two lakes and the bragging rights to the ‘Music Capital of the World’ bring a mix of newcomers.”

Housing has grown to a nearly $4.3 billion industry in the Austin metropolitan area, according to stats from research firm Residential Strategies Inc. And these aren’t exactly bad credit home loans being applied for; it’s an upper class-dominated city.

Data from that company shows that one of the fastest growing segments of the market in recent years has been the $300,000 to $500,000 arena. Also gaining steadily is the $500,000 and over segment, as Austin mortgage activy remained active.