The property market in Houston continues to perform well, with the city making the top ten US cities with the most US$ 1 million-plus homes sales.
Houston ranked number six on the list, beating out Seattle, Boston, Washington DC and Newport Beach, all of which have higher medium house prices.
San Francisco topped the list, followed by Los Angeles. San Jose was third with Chicago and San Diego rounding it out.
“The luxury home market in Houston is thriving in large part because of the strong and diverse job market,” Redfin agent Tara Waggoner said in the report. “Energy and technology companies like Exxon Mobil are hiring employees away from the coasts. Those people are shocked at how much home they can get for $1 million in Houston.
“The Heights area is popular for its 1920s to 1950s inspired bungalows and its protected historical district. In other popular neighbourhoods, like The Woodlands, the job market is causing a bit of a cultural shift, too. People are starting to forgo the Houston nightlife and opt to stay home, simply because they now have the space to entertain.”
In Houston 282 homes costing $1 million or more were sold during the quarter, up 42 per cent from a year earlier and 114 per cent higher than the same quarter in 2011. Three of the homes sold for at least $5 million. The average increase for the 385 cities with million-dollar-home sales in the third quarter was 17 per cent.
The report said Houston had not been a city that traditionally attracted investors, unlike San Francisco or LA, but that was changing. The relatively low median house price and good rental returns had seen more investors buy in the city.