A peaceful suburban haven just beyond the hustle and bustle of the big city, Southlake offers residents an upscale urban environment with a small-town community vibe. The dynamic downtown district is home to outstanding dining and shopping opportunities, as well as numerous events and celebrations that take place at the Town Square each year. Walkable, tree-lined streets make navigating the city a breeze, and the proximity to Dallas and Fort Worth makes it ideal for commuters.
While there is plenty to do in Southlake, the real estate options are one of the main draws to the area. Residential real estate in Southlake features luxury living options that range from custom builds to modern mansions and impressive executive homes in close-knit, active communities.
If you're planning to relocate to Southlake, you'll need to know more about the Southlake, TX, real estate market, local neighborhoods, and property buying trends in the area.
A glance at the 2023 Southlake housing market
Understanding local real estate market predictions can help you determine what types of property are ripe for investment in Southlake. Here's a peek into what you can expect for the coming months.
Home values continue to rise
Even as rising interest rates led to concerns about housing affordability, median housing prices continued to rise statewide throughout the year. This increase is likely due to a lack of inventory, which has also led to higher demand for new construction.
The Dallas-Fort Worth area remains a seller's market, where homes are selling quickly. With a shortage of available homes and a strong local economy, prices remain stable, and homes sell for around 1.5% above the asking price.
The Dallas-Fort Worth area remains a seller's market, where homes are selling quickly. With a shortage of available homes and a strong local economy, prices remain stable, and homes sell for around 1.5% above the asking price.
Interest rates level out but remain high
After consistent growth, nationwide interest rates reached a 22-year high before decreasing slightly. The average fixed-rate mortgage (FRM) dropped from 7.23% on Aug. 24 to 7.18% at August's end. Real estate forecasters predict that rates will moderate in the coming months, and the Fed will finally pause rate hikes. As rates stabilize, housing sales could increase due to perceived affordability in a changing market.
Low inventory and high homeownership rates lead to limited investment opportunities for landlords
Owner-occupied housing in Southlake is above 95%, signaling that most residents own their homes. Meanwhile, housing demand remains high, potentially making it difficult for landlords to quickly recoup an investment in residential homes.
Southlake population growth is slowing
With 31,105 residents within the city's 21.9 square miles, the population in Southlake has decreased slightly since the peak of 2020. However, since the population has grown a whopping 42.4% since 2000, the city has expanded significantly in recent years. Housing in the area remains highly sought after as it is a popular suburb in the coveted Dallas-Fort Worth area.
Tarrant County housing market trends
Home sales and median prices have dipped since the buying frenzy in 2022, with median prices dropping 4.8% compared to July 2022. Active listings are down 2.7%, and homes are spending more time on the market, suggesting the market is cooling due to rising interest rates. However, stabilizing rates could give buyers and sellers the confidence to re-enter the market in future months.
How Covid affected Southlake's real estate market
While COVID-19 had many unexpected effects on human behavior, the housing market boom might have been the most surprising. As home prices rose nationwide, properties in Dallas-Fort Worth followed the trend. Yet, the effect was substantially more pronounced in North Texas than in many other parts of the country.
Home sales reached record levels across Texas in early 2021, before dropping due to widespread power and water outages caused by winter storm Uri. Even as home sales fluctuated and normalized throughout 2021, luxury home sales priced at more than $400,000 accelerated, growing 5.2% quarter over quarter by mid-year.
Demand for new builds and existing homes has remained high, even as the housing market inches towards pre-pandemic normals.
Foreclosures remain low
Nationally, foreclosures climbed throughout 2022 and the first half of 2023. However, Southlake homes have been largely unaffected. Even as home prices have climbed substantially in the Dallas-Fort Worth area in recent years, foreclosures in Southlake are practically non-existent. While there have been 221 home sales, there has only been one foreclosure filing in 2023 to date.
Median home prices in Southlake in 2023
The median sale price of homes in the Dallas-Fort Worth area is around $421,000. This price is up 15% from last year, but 3% lower than June prices. However, the median home value in Southlake, TX, is $890,625, reflecting the desirability of luxury homes in the Dallas-Fort Worth suburbs.
Southlake real estate market: Is it a good time to invest?
A home purchase is a substantial investment and one of the most expensive purchases most people make in their lifetime. When choosing to invest in a Southlake home, there are many factors you should take into consideration. The Dallas-Fort Worth metro area is growing and the economy remains strong. Luxury homes, like those found in Southlake, remain among the most sought-after properties in the market. Consider these popular neighborhoods to determine whether an investment in Southlake real estate is right for you.
Cambridge Place
A popular Southlake community, only 10 minutes from the DFW International Airport, Cambridge Place contains 153 luxury homes built between 1997 and 2022. Single-family homes in various sizes and styles feature ample yard space with an average lot size of 0.5 acres. The neighborhood is served by the Carroll Independent School District and is located less than 30 minutes away from many popular attractions, including Six Flags over Texas and Lake Grapevine. Neighborhood amenities include a pond, a children's playground, and a community park.
Estes Park
An exclusive community located in the northern part of Southlake, Estes Park contains around 190 homes within its 53 acres. The neighborhood features lush green lawns and mature trees along peaceful residential streets. With eight acres of beautiful parkland featuring open green spaces, ponds, and trails, the community is a great place to stay active and enjoy a peaceful environment outside the hustle and bustle of the city. Estes Park is served by the Southlake-Carroll Independent School District.
Timber Lake
A master-planned community with just over 300 custom homes, Timber Lake Estates is a quiet neighborhood featuring winding streets and a vibrant community. Gorgeous homes sit on 0.3 - 0.6 acre lots, providing residents with expansive outdoor space and privacy. The neighborhood is served by the Carroll School District. Community amenities include tennis courts, a pond, a playground, open space, and trails.
Find your ideal Southlake home with assistance from Sophie Tel Diaz
The real estate market in Southlake and the surrounding Dallas-Fort Worth suburbs is a dynamic and competitive arena where homes often sell quickly. If you're looking for a luxury home in Southlake, you need an experienced realtor with a deep understanding of market trends and local home availability.
Sophie Tel Diaz Real Estate is a top brokerage in the Dallas-Fort Worth area. With extensive experience in the local and international real estate market, Sophie is prepared to help buyers and sellers navigate the complex Southlake, TX, real estate market. Get in touch today to learn more about how our real estate experts can help you navigate your property purchase or sale in Southlake.
*Header photo courtesy of Shutterstock
