Early Signs of the Spring Luxury Market in Dallas Fort Worth
If you’re in the market for a luxury home this spring, there are some early signs of what may be ahead for the Dallas Fort Worth area. This is key information that any savvy luxury real estate buyer or seller should know to ensure they make an informed decision and get the results they want. With so many factors potentially impacting both buyers and sellers, we’re here to help provide some insight into what could happen when it comes time to purchase or sell your luxury property in Spring 2023. Read on as we review all of the pertinent information related to this upcoming season – from understanding if it will be a buyers' market or a seller's market, to tips on how you can prepare yourself best for success!
Overview of the Dallas Fort Worth Real Estate Market
The luxury real estate market in Dallas Fort Worth is currently a balanced market as we approach the Spring of 2023. Compared to luxury benchmark prices just one year ago, luxury home prices have risen significantly to an estimated $750,000 for a single-family home today. This is up 7% from the $700,000 for much of last year. As such, there has never been a better time for luxury homebuyers to invest, with plenty of options available on the market for luxury homes at desirable (albeit increasing) price points. For luxury home sellers however, supply still seems to lag demand. If you're considering either buying or selling a luxury property, now is certainly the time to assess your options and start making moves in the DFW real estate market.
Understanding Today's Balanced Market
The Dallas single-family luxury market is in a balanced state as of spring 2023. The current sales ratio, which measures the ratio of sold homes to active listings, is 20%. This means that the market is great for both home buyers and sellers; while not as advantageous as a buyer's market or seller's market would be to either side, it offers a balance between getting the right price and being able to find what you're looking for. Buyers can take advantage of the variety of options on offer – including properties with higher days on market – while sellers can make sure they get their desired price or close to it. Exploring this unique situation will ensure homebuyers and homeowners make smart real estate decisions in today's advanced market relative to their positions in it.
Preparing to Sell in a Balanced Market
Spring of 2023 is already shaping up to be an exciting time for the luxury real estate market in Dallas. Following on a trend of recent years, the market has shifted from being a seller's market to strengthening into a balanced one. This means that sellers will no longer expect over-asking prices or multiple bids; instead, they should focus on pricing their homes accurately to attract serious buyers and close quickly. Working with an experienced luxury realtor to understand how comparable properties have sold in the area will give you an edge when it comes time to plan the listing strategy and price, making it easier to successfully navigate this balanced market. Now is the perfect opportunity for savvy sellers who want to take advantage of this new state of equilibrium in the Dallas real estate market.
Tips for Home Buyers to Take Advantage of Moderate Prices and Weighing More Competitive Scenarios
As buyers enter the Spring 2023 Dallas luxury real estate market, they can take advantage of a balanced market and more moderate prices, as fewer buyers compete to obtain the same number of homes available. Home buyers can also use this opportunity to take their time in the absence of more competitive scenarios that provide potential buyers with more favorable terms. In particular, buyers should assess how long a particular home has been on the market and ask their real estate agent about opportunities to uncover possible seller concessions like interest rate buy-downs, cash as closing, and more repairs. Thinking creatively about concessions rather than jumping at the first opportunity to lowball a seller may result in buyers obtaining much better terms and an overall sense of satisfaction when finally closing the deal which produces a better win-win outcome for both sides.
Additionally, we are still seeing that those properties that are most competitively priced and positioned are finding more favor with buyers, leading to competition between buyers. For these properties, multiple offers are still happening and are highly likely indicating that a buyer may not always be in a position to haggle a luxury home seller on price and terms. We're cautioning our buyers not to overplay their hand if they are truly motivated on a property and want to call it theirs.
Analyzing Today's More Balanced Market
The Spring 2023 will mark a healthier real estate market for Dallas luxury home buyers and sellers alike. It is a refreshingly balanced market with room for negotiation on both sides- resulting in both feeling like they got what they wanted. Sellers do not have to concede as much as they may expect in a buyer's market while buyers should expect healthy competition amongst other prospective buyers and sellers holding their ground. Success stories are plentiful on both sides and it can be argued that this is one of the healthiest markets Dallas has seen in recent years, in spite of the higher interest rate environment.
Specific market stats of note as of the end of January 2023 are as follows:
The Dallas single-family luxury market is a Balanced Market with a 20% Sales Ratio.
Homes sold for a median of 97.78% of list price in January 2023
The most active price band is $1,000,000-$1,199,999, where the sales ratio is 48%
The median luxury sales price for single-family homes is $1,017,500
The median days on market for January 2023 was 39 days, up from 8 in January 2022
Strategies for Home Sellers in the Current Market
Home sellers in the Dallas luxury real estate market should come out of the gates swinging with the best positioned and priced home in order to take advantage of the current balanced market. With houses on the market for longer and competition higher, it can be slightly more difficult to secure a timely sale or any sale at all as the number of homes that expire without selling has been trending up since last Fall. Selling your home requires research, preparation, pricing strategy, knowledgeable representation and marketing. Homeowners should take the counsel of their experienced real estate agent and plan ahead by preparing their home's condition for listing by performing repairs if necessary or making cosmetic improvements. Working with a knowledgeable real estate agent with experience in managing pre-sale renovations is paramount. A few strategic actions on the seller's part in the beginning, in partnership with their real estate agent, will ensure sellers come out ahead in this balanced market and walk away from closing with a good return on their investment.
The luxury real estate market in Dallas Fort Worth in the Spring of 2023 offers great opportunities for both buyers and sellers. Not since 2019 have we seen such balance between buyers and sellers, and it is a prime time to take advantage of the moderate prices. Whether you are looking to buy or sell, studying today’s market offers potential for success. Consider strategies such as understanding the local trends in pricing, leaning into negotiations where possible, being creative with negotiation and financing methods and adhering to home-buying and selling best practices to reach a win-win outcome.
If you are preparing to enter the luxury real estate market in Dallas Fort Worth, ready your finances and make sure that you are confident not only with your budget but also when making an offer. Finally enlist the help of experienced local realtors with Modernest Realty and the Megan K Johnson Real Estate Team who will be able to offer their expertise in navigating this unique landscape associated with the current market. Call us today at (214) 310-1495 and we would be happy get started in helping you meet your home goals!
