It’s no secret that the Dallas-Fort Worth real estate market has experienced significant price increases in recent years, similar to other cities all over the country. As a result of a tight inventory and strong demand, fierce competition has been brewing among buyers, and home values have increased to unprecedented levels. However, this may all be changing in 2023.
In recent years, rising housing prices and mortgage interest have reduced the number of buyers, leading to more properties becoming available on the market. This is why Dallas housing market projections for 2023 suggest a cooling trend is approaching. It is now possible, if not likely, that home prices in the Dallas-Fort Worth area will decline in 2023, providing a more optimal market for buyers.
Not exclusive to Dallas-Fort Worth, these trends will likely serve as market indicators for real estate in the metro area’s nearby suburbs of Westlake and Southlake. If you’re looking to buy a home in the next year, these North Texas hamlets are bucking depressing national real estate trends, making them the smart option.
The Dallas-Fort Worth metro area is one of the nation’s most optimistic markets
While many housing markets across the United States are predicting less optimal outlooks, North Texas, including the Dallas-Fort Worth metro area and surrounding areas like Westlake real estate, is optimistic. Urban Land Institute’s Emerging Trends in Real Estate report ranks the Dallas-Fort Worth metro area real estate market in second place behind Nashville, ranking the top metropolitan areas expected to flourish in 2023.
While higher interest rates and the threat of a recession cloud the real estate business, booming cities in the Sun Belt outperform the rest of the country, according to the new forecast.
Southlake and Westlake's real estate proves resilient
Booming metro areas in the Sun Belt, including the Dallas-Fort Worth area, are expected to fare better than the rest of the country if the U.S. economy takes a significant dive in 2023.
Additionally, it's good practice to keep in mind that while the cost of home financing will likely increase when interest rates start to climb, the home prices themselves may actually decrease, a most attractive trend for buyers.
Enjoy the Fruits of a Buyer’s Market
Those considering Dallas-Fort Worth or Southlake houses for sale are in luck because current trends indicate a 2023 buyers' market. In November 2022, the median "time on market" for Dallas-Fort Worth real estate listings was 43 days, eight more days than last year. This further indicates that the local real estate market is experiencing a slowdown, directly correlated to higher mortgage rates and home prices.
Last year, Dallas’ housing market also saw a substantial amount of price reductions when a homeowner puts their home on the market but then has to lower it due to a low volume of quality offers.
The price cut trend suggests that Dallas-area home buyers may have more bargaining power in 2023 than in the past two years. Simultaneously, the risk of falling prices can make would-be buyers reluctant to purchase.
Supply growth to play a major role in the market cooling
As expected, supply conditions play a significant role in the current slowdown in the DFW housing market. In short, more homes are on the market today than a year ago, thus altering supply and demand dynamics.
By the end of 2001, the Dallas metro area's housing market supply level had fallen to an all-time low. At the time, there were less than a month's worth of homes for sale in this market, well below a standard housing market.
However, supplies have steadily increased since then, reaching a two-and-a-half-month reserve by September 2022. The climbing trajectory has relaxed buyer competition at a time when buyers are more scarce. If this continues, it could put additional pressure on prices, causing a downward trend through 2023.
Newer Local Shopping Opportunities at Southlake Town Square will potentially increase demand
For those considering Southlake houses for sale, new area-shopping opportunities will likely increase demand in the local real estate market.
With over 120 shops and numerous fine dining restaurants, Southlake Town Square offers the caliber of shopping found in nearby Dallas without the hassle of driving through metro traffic.
As new retailers set up shop in Dallas-Fort Worth, the Square is luring aftermarket locations, sometimes welcoming a national brand’s first North Texas location. Next year, shoppers can visit the popular women’s fashion store Aritizia and the Dallas-based menswear brand Mizzen + Main. These new commercial real estate additions speak to the growing interest in communities like Southlake from buyers who want all of the amenities a big city like Dallas offers but prefer the relaxed lifestyle a quiet suburb offers.
Thinking of buying Luxury Southlake or Westlake real estate?
Buying a luxury home is both an important decision and a major life milestone you can be proud to have achieved! If you’re considering luxury homes in Southlake or Westlake, you want a veteran real estate team by your side. Pick up the phone and call Eric Hacker to speak with an experienced agent you can put your trust and confidence.
A former professional baseball player, Eric Hacker believes that your home search deserves the same quality of dedication, teamwork, and passion for success that it takes to win a world series. Working with Eric is a winning bet. Reach out today to get started.