Corporate expansion, local wealth, and a diverse regional economy continue to fuel steady demand for Dallas luxury homes as the market moves into the fourth quarter, according to Keith Conlon, president and CEO of Allie Beth Allman & Associates.
Those drivers underpin the executive’s resilient outlook for the final months of 2026, positioning the luxury firm for another record year.
“The very high-end luxury market in Dallas remains very strong with significant activity,” Conlon said.
Allie Beth Allman & Associates generated approximately $1.053 billion in third-quarter sales, bringing volume through September to just under $3.7 billion. Conlon expects the company to surpass its 2025 record of more than $4 billion.
“There are real estate firms across the country that are struggling with transaction volume and high interest rates, but Dallas continues to attract companies, jobs, wealth, and people, and those buyers are coming into the neighborhoods where we do much of our business,” he said.
According to Conlon, well-priced luxury homes continue to attract serious buyers, particularly those between $2.5 million and $5 million. Buyers arriving from other markets are sustaining the activity, but it’s the local families who continue to drive the luxury market by upgrading to bigger, more expensive homes as they invest for the long term.
“One thing that continues to amaze me is the amount of wealth and liquidity in Dallas,” Conlon said. “We also are seeing families helping younger generations purchase or upgrade their homes as they move into significant periods in their lives, like getting married, having children, or moving into neighborhoods for the best schools.”
The region’s economic breadth is helping support the real estate market, with the Federal Reserve Bank of Dallas identifying finance, insurance, transportation, and e-commerce as expanding local industry clusters, providing multiple sources of employment and investment.
Dallas-Fort Worth also ranked first for commercial and homebuilding prospects in PwC and the Urban Land Institute’s outlook for 2027. The proliferation of “Y’all Street,” the growing financial services sector in Uptown with billions of dollars in investment and thousands of future jobs, exemplifies the commercial expansion that Conlon said is helping sustain residential demand.
The housing market nevertheless varies by price point. Across Dallas-Fort Worth, September closings declined 6.6% from a year earlier, MetroTex data showed. Conlon said higher mortgage rates have made financing-dependent buyers more selective.
“Interest rates will always fluctuate but the question is whether you can use current market conditions to your advantage and secure the house you really want,” he said. “A knowledgeable agent and a good lender can help buyers understand the tradeoffs.”
Conlon said the second quarter and the traditionally hot summer months were extremely strong for the company, with June setting a monthly record of approximately $610 million and July surpassing $400 million for only the second time in its history. The company had recorded $1.051 billion in sales in the first quarter and $1.56 billion in the second quarter.
Conlon said that through the third quarter, the company dominated the Park Cities with about 40% of the market against numerous competitors. Its volume there declined about 3% against an extraordinary 2025, compared with MLS volume declines of 20-30% clocked by some competitors, he said.
He said transactions were up about 8% and sales volume 23% year over year through September, noting that there was no doubt that the market has shifted since the buying frenzy of the pandemic. Success for sellers now, he said, increasingly depends on pricing discipline and experienced representation.
“Sellers may believe their home is worth a certain amount, but buyers no longer are automatically paying an aggressive asking price simply because a home is attractive or in a desirable location,” Conlon said. “Sometimes, the initial price reflects the buyer’s aspiration rather than the reality of today’s market.”
This is where experienced agents add value to a transaction as they bring neighborhood knowledge, relationships, and insight into off-market properties.
“We’re positioned to perform well when everybody is doing well, but when the market becomes more complicated, our experienced agents distinguish themselves,” Conlon said. “In that type of market, finding properties, pricing a property correctly and negotiating a transaction matters more, not less.”
Conlon said he is excited about a great finish to 2026 and expects a strong start to 2027.
“Dallas buyers have choices. They’re paying attention to interest rates and they’re much more disciplined about value,” he said. “The best homes are still attracting buyers because Dallas continues to be one of the safest and strongest places in the country to own real estate.”
