As more and more wealthy people look to live in the Dallas-Fort Worth area, luxury home sales have risen to meet their unique needs. Let’s delve into this high-end trend.
Dallas Welcomes the Wealthy
Dallas has America’s fourth-highest concentration of people with ultra-high net worth, those with assets ranging from $5 million to $30 million. This is according to the most recent World Ultra Wealth Report from Wealth-X, famed for its global wealth database tracking the uber-rich. And a substantial number of these wealthy individuals call Dallas home with either primary or secondary residences. For net worth by population, Dallas ranks 10th in the world.
Luxury Sales Are Soaring
Exactly what are these wealthy people buying? And where? That’s tough to say; upward of 75% of luxury home sales happen off-market – the wealthy do like their privacy. What we do know, with some help from the luxury real estate brokers Compass, is that sales of homes in the DFW area costing $10 million or more jumped over 67% from 2020 to 2021. And as home prices have increased overall by more than 30% in the past three years, putting the median sales price of a home in North Texas at a record-setting $400,000 in December, we’re sure to see lots of luxury home sales going forward. How many homes? According to Texas Realtors, last year about 14% of all sales in the DFW area were for luxury listings.
Consider a Jumbo Loan for Your Luxury Purchase
The majority of conventional mortgages – such as VA loans, FHA loans, and others – are meant for moderate single-family homes. Conventional loans often have loan limits that don’t meet the price tags of luxury properties. Which is where Jumbo loans come in; these non-conforming mortgages are designed specifically for higher purchase prices. So perhaps you’ll take advantage of today’s attractive interest rates with a Jumbo loan and put your cash to better use with high-yield investments.
When you’re ready to finance that palatial pad you’ve got your eye on, First United Mortgage is here with a team that specializes in loans for luxury homes. Give us a call at (972) 591-3097.
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