The real estate world has seen some historic ups and downs in the last 15 years. From the crash during the Great Recession of 2008 to the record-smashing median home price jumps following the 2020 COVID-19 pandemic, unusual circumstances have made home prices fluctuate with unprecedented ranges. But as the nation moves further beyond the craziness of the global pandemic, the housing market is showing signs of cooling and stabilization. What does that mean for the local market in Southlake, TX? Analysis by various experts might paint a broader picture for you.

Median home prices soared by record numbers soon after the world locked down amidst the 2020 global pandemic. Year-over-year values were significantly elevated, often resulting in bidding wars with buyers for residential properties.

Low interest rates and a slowdown in new home builds fueled the great demand for whatever housing inventory was available. With available houses in such short supply, the demand made the median home prices skyrocket in value.

Median home prices and sales of new homes began to decline in mid-2022. This past spring, an overall year-to-year decrease was recorded for the first time in years. This was certainly a significant sign that the housing market was cooling off. But, experts maintain that even though prices have dropped some, market factors don’t point to the bottom dropping out.

Homes are still in short supply. Even though recent jumps in interest rates by the Federal Reserve have made some folks stay put in their current homes, there is still a demand. And as long as that demand is there, the median home prices nationally aren’t expected to drop much further, and in fact might be leveling off in many real estate markets.

 

What does this data mean for the Southlake housing market?

Home prices in this area of Texas are dropping faster than they are nationally. Last year, the Dallas metro saw a dip in median home prices of 10%, and experts are predicting that this trend will continue, though not with such dramatic drops.

The Southlake area is one of the most in-demand places to move to in the country, mostly due to the massive popularity of Dallas. The abundance of high-wage earning jobs in this metropolitan area means that people will still be making moves there. But with many homeowners opting to stay put because of higher interest rates, the area could see a shortage of available homes like it did during the pandemic. These factors are why other forecasters are predicting no further cooling for the housing market in this region.

Clearly, anyone considering making moves in the Southland housing market will need to weigh out their options carefully. What you do as a buyer or as a seller will take some planning and careful consideration.

If you are thinking of selling, should you wait and see if the market is going to recover in a year, or should you make your moves now before the median home prices drop any further? This will depend on your circumstances.

Should you be in a position where you must move, the sooner you put your home on the market, the better. Even if the market is only leveling off, you’ll have your home listed despite a shortage of available housing. And if the market does continue to drop, you’ll cut your losses substantially by acting now. If you’ve had your home since before 2020, odds are you have seen your equity jump by leaps and bounds. And while that equity might have dropped 10% over the last year, your home still has much more value than before the pandemic.

If you are buying a house, you should know that higher interest rates will keep a lot of buyers from taking action. This will help stave off competition for the homes that are currently available.

But no matter if you are buying or selling, you will be better off pairing with a real estate professional. As a seller, you will have someone aggressively market your property and lead the most qualified prospective buyers to you. No matter the real estate market, a selling agent will statistically get you more for your money than you would if you sold the home on your own.

As a buyer, you will want an agent who knows the currently available housing inventory and can find the home that meets your criteria. Buying in the Southlake housing market can still be competitive, but a savvy realtor with connections may be able to find your property that isn’t even listed publicly for sale. This will eliminate competition and the need for a bidding war between buyers.

Buying or selling a home takes a lot of time and consideration. A house is typically the single largest investment for someone in the United States and should be treated with respect and caution. Before committing to buying or selling, you must sit down and discuss your options with a real estate agent.

The pros of The Wall Team have years of experience with both buyers and sellers and will be able to expertly navigate you through the entire transaction. These agents know the Southlake market inside and out and can quickly identify what is available in the local housing inventory. Consider one of these agents and see where their experience takes you.