With homeowners and prospective buyers at all levels rethinking how and where they want to live, the real estate landscape has evolved dramatically since 2020. The luxury home market is no exception.

As in previous years, the Sotheby’s International Realty^® 2024 Luxury Outlook℠¹ reflects not only where buyers are looking globally but also what they seek in properties. Fortunately, several of these trends are good news for Central Texas luxury property owners seeking to sell.

And for luxury homebuyers? It’s a helpful insight into the market as well.

Texas tax advantages continue to attract luxury homebuyers

This will come as no surprise to anyone watching the Central Texas market, but mature luxury buyers remain interested in leaving high-tax states (like California) for low- or no-tax places, including the Lone Star State.

The report also cites a national buying trend toward selecting busy suburbs, especially now that hybrid work has become more commonplace. As a result, and although each community is distinct, buyers nationwide may start to find deals in neighborhoods nearer to city centers.

International buyers also look to Texas for luxury homes

In addition to U.S. residents looking to change states, Texas continues to attract substantial interest from wealthy international homebuyers. These buyers are often seeking high-end vacation properties. Among the states generating the most interest? Texas, Florida and California — with luxury buyers from Asia and Latin America being prominent in the market.

Resilient, sustainable design increases appeal to luxury buyers

The report suggests sustainability and resilience will take center stage with luxury buyers in 2024, as concerns mount over the reported rise of tropical storms, wildfires and flooding in recent years. These buyers want buffers to protect their investments against future potential natural disasters. They also increasingly expect vehicle charging ports, solar power generation capacity and sustainable building materials and practices to be part of their homes.

Hotel-style amenities raise luxury to a new level

According to the report, there’s a growing interest among buyers in the kinds of features found in high-end hotels. For example, homebuyers increasingly want all bedrooms to be suites — often including kitchenettes — to maximize comfort for family members and houseguests alike. Spa-style bathrooms, cocktail bars and family recreation zones are other popular amenities.

New technology takes remote viewings to a new level

Virtual reality and augmented reality tools are making it easier for buyers to not just view but experience luxury properties remotely — getting a sense of standing in and moving through spaces, opening doors and drawers, and seeing the fine details. That’s good news for sellers of properties that may be situated off the beaten track. The rise of real estate tech can help sellers attract international buyers.

» Tip: Although technology is a terrific tool for researching homes, anyone entering today’s premium real estate market may find a real estate agent useful. In fact, an agent who specializes in luxury realty can be especially insightful, seeing as high-end property transactions may prove more complicated than other sales or purchases.

The luxury market is strong but not overheated

The report puts market fluctuations in focus, too. While housing prices are down from the peak of pandemic demand, in part due to higher interest rates, they’re still comparatively higher than before 2020. Sellers who take a pragmatic approach to pricing are more likely to attract interest among luxury buyers looking to buy their next home in the Lone Star State.

Are you considering selling or looking for your next luxury Texas property? The experienced agents at Kuper Sotheby’s International Realty, RBFCU’s preferred real estate partner, are here to help you move beyond your expectations toward an extraordinary real estate experience.