How much is your North Dallas Home? How much advise do you need?
Buying a Home in Today's Dynamic North Dallas Real Estate Market
To understand today’s complex North Dallas real estate market, it is critical to have a local, trusted real estate advisor on your side – for more reasons than you may think.
In North Dallas real estate today, there are essentially three different price points in the market: the starter-home market, the middle-home market, and the premium or luxury home market. Each one is unique, and depending on where you are looking in the surrounding cities, the price point in these categories will vary. For example, a starter or lower-end home in Frisco 75034 zip code can be much more expensive than almost any other parts of the city or Highland Park which can be one of the most expensive home markets in Texas . Let’s explore what you need to know about each of these tiers.
Starter Home Market:
This market varies by price, and these North Dallas TX homes are typically purchased by first-time home buyers or investors looking to rent them for a profit. Across the country, homes in this space currently have less than 6 months of inventory for sale. In some areas of the metro plex there is less than 3 months and in good safe communities with good schools they move off the market quickly. That means there aren’t enough homes on the lower end of the market for the number of people who want to buy them. A low supply like this generally increases competition, drives bidding wars, and sets up an environment where homes sell above the listing price. According to data from the National Association of Realtors (NAR) on realtor.com,
“The desire for affordability continues to push down the inventory for homes listed for less than $200,000.00.”
Medium Priced Real Estate Market:
This market segment is often thought of as the move-up market. Typically, the buyer in this market is moving up to a larger, more semi-custom home with more features, all coming at a higher price in a nicer location. In addition, there are many new construction home communities in North Dallas that fall into this category with a wide range of locations, prices and cost. Across DFW, this market has become more balanced than the lower end of the market, meaning it has closer to a 6-month supply of inventory for sale and average days-on-market (DOM) has been growing. This market is more neutral, but stilil leaning towards a seller’s market in some cities.
Gated Communities & Luxury Homes
This is the top end of the real estate market with larger custom homes and gated estates that offer offer entensive custom features and upgrades. In North Dallas, this luxury home market is growing in the number of homes for sale and average days on market. Nationally, we can see that year-over-year inventory of homes in this tier has grown by 4.7%. Today, there are more homes available in the premium and luxury space, leading to more of a buyer’s market at this end enabling better opportunties for buyers to negotiate putting pressure on final sales prices.
What is next.....
Depending on the segment of the market and the price point you’re looking to purchase, you’re going to need the advice of a local real estate expert. Let’s discuss how we can help you navigate the home-buying process.