Highland Park Homes Originally Priced at $33 Million Sold for About the Same as Homes Priced at $23 Million
Eight Highland Park and University Park homes marketed in the last two years, since October 2024, tell a striking story about pricing in the luxury market: four homes originally listed from $27 million to $36.5 million sold for or, after price reductions, were last listed at about the same prices as four homes originally listed from $20 million to $26 million.
Because Texas is a non-disclosure state, the comparison is based on reported prices: the reported closing price when available and, otherwise, the last reported listing price.
The average original listing prices of the two groups were more than $9 million apart, yet their average final sale or last listing prices were less than $1 million apart. The four houses originally listed at an average of $33 million ended up at an average of $23 million. The four houses originally listed at a bit over $23 million on average ended up at an average of $22 million.
We can see that the asking or sold prices of the $27 million to $36.5 million homes came down and ended up very close, on average, to those of the homes originally listed at $20 million to $26 million, which sold for or were last listed at prices close to their original list prices.
The best example is the home at 3711 Lexington. It was originally listed at $36.5 million. After a series of price reductions, it went to auction with a listing price of $17 million. It has been reported that the hammer price at auction was $21 million.
These sales and examples suggest that the sweet spot for luxury homebuyers in Highland Park and University Park is $20 million to $25 million. This sweet spot is not dictated by a lack of buyers with the resources to pay more. There are many homebuyers with incredible wealth and resources, both in and outside of Highland Park, who desire a home in the Park Cities.
However, those who desire a very expensive home are inclined to have one designed to reflect their specific needs, desires and design aesthetics. For homebuyers who are currently building or desiring to build a home in the $50 million or $100 million range, the creation of a home is almost as satisfying as the future enjoyment of living in the home.
We are also seeing homebuyers paying increasingly high prices for historic Highland Park homes that previously would have sold only for their land value.
A good example is the Charles Dilbeck-designed home in Highland Park that I sold this summer. Appraisers and most realtors valued it at lot value. Yet it sold for more, with several disappointed buyers who would also have paid a higher price for this architecturally significant home.
The supply of historic homes ranging from 2,500 to 4,500 square feet is decreasing. Demand from buyers desiring an architecturally significant or charming Highland Park home is increasing. This demand has caused the prices of these smaller historic homes to rapidly increase.
Homes in every price range have buyers with the capability and resources to purchase them. However, as always, some segments of the market are comparatively slow while others are thriving at unprecedented levels.