As the allure of suburban living continues to captivate homeowners, Southlake emerges as a shining gem within the Dallas-Fort Worth metropolitan area. With a harmonious blend of small-town charm and urban convenience along with a top performing school district, Southlake’s real estate market continues to be a top choice for local and out of state buyers.
In this article, we will explore the Southlake and surrounding area’s real estate market, including trends, forecasts, interest rates, investment indicators, and population migration. These insights will provide information to help you determine whether investing in Southlake real estate is a prudent decision.
Southlake, TX housing market forecast 2023
Overall, the Southlake and surrounding areas’ real estate market maintains a strong outlook, and summer is historically a good time to buy or sell property. Although inventory levels are low, numbers have more than doubled from a year ago. Higher mortgage rates are the distinguishing factor between now and a year ago. There is more inventory at present, but high mortgage rates affect affordability in the greater Fort Worth/Dallas area.
Experts predict that the real estate market will gain momentum in the upcoming months as mortgage rates gradually decrease. National Association of Realtors Chief Economist Lawrence Yun's forecasts indicate a gradual descent, with mortgage rates anticipated to inch closer to the 6.0% threshold as 2023 progresses. Looking ahead to 2024, projections suggest a potential dip below the 6.0% mark, offering prospective homebuyers an advantageous environment in the near future.
Home values increasing
Homes in Southlake witnessed a steady rise in value over the years, driven by several key factors. Firstly, the city's desirable location near the bustling Dallas-Fort Worth metropolitan area and its renowned school district make it an attractive destination for families and professionals alike. This high demand for housing contributes to the appreciation of property values.
Additionally, Southlake's reputation as an affluent community with upscale amenities and well-maintained neighborhoods further enhances its appeal. The city boasts luxurious homes, spacious lots, and impeccable construction quality, all of which contribute to the increasing value of properties. Furthermore, the limited availability of homes for sale in Southlake plays a significant role in driving up home prices. With a constrained housing inventory, competition among buyers has intensified.
To gain a deeper understanding of the current market conditions and trends in Southlake, partnering with the knowledgeable experts at Selling Southlake will provide you with the accurate insights needed to make informed real estate decisions.
Rising interest rates
Around a year ago, interest rates reached unprecedented lows. However, inflation has exerted pressure on interest rates, leading to an increase. Presently, Texas interest rates stand around 7.29% for a 30-year fixed mortgage and 6.5% for a 15-year fixed mortgage.
Economists anticipate that rates will persist above the historically low levels observed a couple of years ago. This poses a challenge to the Southlake real estate market.
Investing indicators will favor landlords
Throughout its history, Southlake has consistently drawn in a high-income demographic, creating a robust demand for rental properties. This trend has opened numerous business opportunities for landlords in the area. The combination of limited housing inventory and an enviable location has given rise to a fiercely competitive rental market. As a result, landlords have the potential to enjoy a steady stream of rental income and the prospect of property appreciation.
Notably, renters make up a substantial portion of the local housing market. This highlights the strong demand for rental accommodations in Southlake, further indicating a favorable landscape for landlords and investors.
Negative net population migration
Southlake stands as one of the most prosperous cities in the nation, with a median household income of $239,833, but recent statistics indicate a decline in population in the area. According to the 2020 Census, Southlake’s population stood at 31,262, but it has since decreased to 30,794 in 2023. This decline reflects an annual decrease rate of -.5%, with a significant decrease of -1.5% since the last census.
North Tarrant County housing market trends 2023
Key findings indicate a 4.1% decrease in the Tarrant County median home price, which now stands at $360,000. Active listings have significantly increased by 11% in June 2023, providing a wider range of options for potential buyers. However, closed sales have declined by 7.7%, totaling 2,298 in June 2023. Properties now spend an average of 36 days on the market, an increase of 20 days compared to June 2022, with an average of 30 days to close.
The county's inventory has grown to 1.8 months, indicating a more balanced market compared to the previous year's 0.9 months. These trends suggest shifting dynamics in the Tarrant County housing market, providing both opportunities and considerations for buyers and sellers alike.
Southlake real estate market: should you invest?
Investing in Southlake real estate presents a compelling investment opportunity. The market offers the potential for property appreciation, aided by limited housing inventory and a competitive rental market. Southlake's proximity to major employment hubs and steady economic growth further enhance its investment appeal. Investing in Southlake real estate offers the advantages of a prime location, favorable market dynamics, and the potential for profit.
Discover the possibilities of owning property in Southlake, Texas, with Selling Southlake. Our team is here to guide you toward your dream home or investment. Let us leverage our expertise and deep knowledge of the Southlake market to help you find the perfect property. Contact Selling Southlake today and unlock the opportunities awaiting you in Southlake, Texas.
