Blog

Bright Spots in a Slowing Real Estate Market

3919 Lively in Midway Hollow

A little confused by the current real estate market? You’re not alone.

Generally speaking, inside the old established neighborhoods of Dallas, the market has slowed. We are seeing pricing pressure in many areas and “days on market’” is increasing. But that slowing isn’t happening across the board — some properties go under contract within a few days or weeks for top dollar. Why is that?

The areas of the market that are still performing well are mostly entry-level price bands. Conversely, the higher price points of these same real estate markets are seeing sluggish activity. Of course, each neighborhood is different, so let’s look to see where the bright spots are.

Midway Hollow

This up-and-coming area has sparked plenty of attention from those searching for homes over the past few years. With a good elementary school and proximity to excellent private schools, the neighborhood boasts new construction underneath $1 million (nearly unheard of inside the loop).

3919 Lively in Midway Hollow 

For example, Ben Parker with Starboard Development recently completed a stunning modern home at 3919 Lively for only $900,000. “Midway Hollow was a hidden gem until the last few years,” he says. “Buyers are now catching on to all this neighborhood has to offer.” It’s value like this, inside I-635, that is attracting buyers.

M Streets and Lakewood

This close-in area has been white hot for the over seven years. It has great elementary schools and offers properties with character and history. Recently though, we have been seeing signs of cooling at the upper price points. However, updated properties under $750,000 are still in high demand.

Park Cities & Preston Hollow

While coveted and historical, these neighborhoods are also experiencing slowing sales except in the entry-level price point. For Preston Hollow, that translates into under $1 million, and in the Park Cities, that’s below $1.5 million. These homes seem to attract younger buyers looking to establish themselves in the area.

If you’re attempting to sell a home that isn’t at the entry-level price point, it might take longer to find your buyer. They’re out there. They’re just shopping without a sense of urgency — unless they happen upon a home with an excellent value or something they wholly fall in love with.

The Lot Price Effect

In the Park Cities, Preston Hollow and East Dallas, lot prices have continued to rise much faster than new home sale prices. As a result, buyers have started to balk at some new construction prices coming on the market. These homes are also competing against others just a few years older which may offer better value. Buyers who really want new construction are looking elsewhere — in areas like Midway Hollow — where new construction is more affordable.

The Real Estate Market Takeaway

So the market’s a little all over the map, we know. But it’s healthy and active, with the general rule being lower price points of each neighborhood continue to do well. Buyers are seeking value and being patient. As sellers, this is not a time to be bullish. Common sense (and in some cases aggressive) pricing, smart property make ready and a good marketing plan are key to getting a property sold for top dollar in this market.

If you need a little help navigating the current real estate market, we’re here to assist — every day of the week.

We grew up here. We live here. We’ve been buying and selling real estate in the area for two generations, immersed in the ebbs and flows of the local neighborhood markets. Deep ties to the community keep us in the know. It’s not just a slogan… WE KNOW YOUR NEIGHBORHOOD.