While Austin holds the bragging rights as the luxury home hub of Texas, that distinction actually might not be so brag-worthy. In June 2016, Forbes reported that Austin was among the among the country’s 50 biggest metro areas. At that time, according to Forbes, homes were overvalued by 19 percent.
“Rising home prices and development costs are pushing higher-end homes into the $1 million-plus price class. New construction in the luxury housing market can easily reach $500 or $600 per square foot, particularly among high-rise condominiums in urban centers,” says Leslie Rouda Smith, who recently wrapped up her term as chairwoman of the Texas Association of Realtors. Luxury towers in metropolitan markets will continue to see an upswing in pricing as new buildings enter the marketplace with higher pricing as a result of higher costs.
Existing new home inventory that was built prior to the market rebound, is quickly becoming a bargain opportunity for investors and homeowners who recognize the long-term real estate play dynamics. Class A properties with central urban locations, luxury design and finishes and resort-style amenities continue to be in high demand for Baby Boomers preparing for retirement in active city centers with walkable lifestyles.
For those seeking a value play, The Alteza above the Grand Hyatt in San Antonio holds a unique distinction in today’s real estate environment. Having been built prior to the downturn, the developer has maintained the pricing based on the original construction costs. While similar quality high-rise offerings in other markets, now begin in the $650 to $700 a foot range, Alteza is offering 2 Bedroom, 2 Bath residences in the $385 to $425 per square foot range. With a high-level of personal service and private resort-style amenities, the project represents a substantial investment opportunity for seasoned real estate buyers who recognize the market dynamics.
With 125 units closed in the building, there are only 21 remaining residences available for purchase. To learn more about the available inventory, CLICK HERE.