Houston's hot – at least when it comes to our housing market. New numbers released on Tuesday show the average sales price of a single-family home setting an October record.
The most expensive homes are also the best-sellers, says Margie Dorrance with the Houston Association of Realtors.
"We consider the luxury market the market above $500 thousand," Dorrance told FOX 26 News. "That market, though it only makes up 6.6% of the sales, it made up over 53% of the dollar volume."
Houston is now a seller's market, Dorrance adds. Plenty of buyers are making offers above asking price to stave off the competition and seal the deal.
The inventory of homes for sale is at its lowest level in 11 years, according to figures from HAR. And the same trend is seen in new home construction, says John Wawrose with Brookstone Homes.
Four years ago, according to Wawrose's numbers, it would have taken two years to sell every new home in Bellaire. Today, it would take two months.
"It's ten times better than it was in 2008," said Wawrose.
And it's not just builders and realtors who do well when housing markets rise. It's also good for governments like the city of Bellaire.
"The tax base of the city goes up," said Wawrose, pointing to a home he's currently building in Bellaire. "We tore down a $400,000 home and the new home costs $1.5 million. And they have the same police, streets, garbage."
In other words, the city will spend about the same amount on services for that address but now gets triple the tax money, based on the property's new, higher value.