Luxury homes sell significantly faster now than they did in 2021 in Dallas, Texas, particularly the high end of $5 million to $10 million homes, according to Realtor.com. In the $2 million to $5 million range, homes sell in half the time they did five years ago. Prices are up and days on the market are down in the $1 million to $2 million range, too. “Texas still offers a great value, but like many states, home values have jumped in the past six years,” says Damon Williamson, Managing Partner of The Agency Dallas. “Homes people bought five or six years ago for $1.2 million are now worth $2 million or more. The luxury market really starts at $2 million to $3 million.”

In some sought-after neighborhoods, such as Highland Park and University Park, prices are up to $1,000 per square foot compared with $600 per square foot a few years ago, Williamson says. “New construction homes with 5,000 to 6,000 square feet start at $3 million,” he says. “If you want a $1 million luxury home, you need to go about an hour outside of Dallas to new construction.”

Even with prices remaining high, Williamson says Dallas is shifting to a buyer’s market in which more negotiating is happening. “Buyers want a deal now, mostly on price, but sometimes also to help with closing costs and even a mortgage-rate buydown,” Williamson says. “Some sellers are a little unrealistic on the price, too.”

Demand for luxury homes comes from locals hoping to upgrade as well as people from California, New York, and Washington, D.C., Williamson says. “We have so many microneighborhoods with different conditions,” Williamson says. “In some places you can find more options in the $2 million to $3 million range, but in others we still sometimes see multiple offers.”