Sales of homes for $10 million and up in D-FW doubled last year

Sales of ultraluxury homes, or those that change hands for $10 million or more, doubled last year in Dallas-Fort Worth, according to research from Compass.

DFW’s 100% growth doesn’t come along with massive figures. The percent increase, good enough for third in the country, represents a jump from four ultraluxury home sales in 2022 to eight in 2023.

Those eight sales add up to a combined $104.01 million. Compass’ 2023 Ultra-luxury Report excludes commercial, land and multiunit properties.

The New York-based residential real estate brokerage compiled data using the North Texas Real Estate Information Services, with its definition of Dallas-Fort Worth spanning Dallas, Denton, Collin and Tarrant counties.

Many ultraluxury homes trade quietly off-market in North Texas and are never tabulated. The reasoning behind that is twofold: Sellers and buyers would like transactions to remain private, and realtors find clients through information-sharing among colleagues in the industry.

Uncertainty led to a slower year-end in 2023, but things are already picking up, according to Christine Danuser, part of Compass’ Danuser Rado Group.

Christine Danuser, a realtor with the Danuser Rado Group at residential real estate... — Christine Danuser, a realtor with the Danuser Rado Group at residential real estate brokerage Compass, has seen signs of an early spring in Dallas-Fort Worth's luxury home market.(Compass / Compass)

“It feels like what would be our traditional spring market has started a little early this year,” said Danuser, noting that the spring busy season typically coincides with school cycles.

“I would anticipate that, especially in spring and hopefully for the rest of the year, there’s going to be a good level of activity,” she said.

Danuser said there has been continued demand for builder-developed projects, especially in the Park Cities and Dallas’ Preston Hollow neighborhood. That’s because of high-end buyers’ desire to purchase move-in ready homes, combined with the scarcity of developable lots and the timeline associated with building from scratch.

High-quality existing homes are still transacting, though they are sitting on the market longer than new construction.

While interest rates and inflation curbed many would-be homebuyers last year, D-FW’s central location and lack of income tax helped sustain sales.

Compass said that post-pandemic return-to-work policies may have been another contributing factor to D-FW’s gains. While executive relocations have softened, they still contributed to luxury sales volume last year, according to the firm’s report.

“There was a period of time where out-of-state buyers were coming fast and furious, and while they’re still coming now, it’s at a more measured pace,” Danuser said.

As the U.S. waits for interest rates to drop, another factor may help home sales in the Lone Star State in 2024. Texans approved the largest property tax cut in its history in November.

Dallas-Fort Worth’s relative affordability is on display when compared with metros that saw the greatest volume of ultraluxury home sales last year. Manhattan, N.Y., had the greatest number of $10 million or more transactions, with 256, followed by the greater Los Angeles area (231), Miami-Dade County, Fla. (118), Palm Beach County, Fla. (91), and Orange County, Fla. (81). While those numbers soar over D-FW’s, all five of those markets experienced a year-over-year decrease.

Nationwide, 2023′s headwinds saw ultraluxury home sales dwindle by 15.26%. The dollar amount accompanying the 1,560 sales tallied just shy of $27 billion. In comparison, 2022 accounted for $30 billion in home sales volume across 1,810 properties. So, while there were fewer home sales, the average home price was slightly higher last year.