The Park Cities is a term commonly used in reference to two communities in Dallas County, Texas (USA) - the town of Highland Park and the city of University Park. The two municipalities, which are surrounded by the city of Dallas, are largely affluent and have some of the highest per capita incomes in the Dallas-Fort Worth Metroplex as well as the state of Texas.
2012 Review
The Park Cities market was active throughout most of 2012, with certain price ranges in higher demand. The uncertain economy caused prices to remain soft, but if the property was priced right, it would sell within days, and sometimes with multiple offers. Home prices that were compelling in price sold immediately. Anything priced at $1 million and under flew off the market within days.
Low interest rates played a big part in stimulating demand, especially for first time home buyers. Other factors that contributed to our market strength in 2012 included:
- An influx of major companies moving their businesses to the North Texas region;
- A lack of supply created buyer frenzy;
- Rental rates continued to rise;
- The overall Texas economy was healthy compared to the rest of the nation; and
- Construction starts were at an all time low.
2013 Outlook
We expect 2013 to be an even better year! The inventory of pre-owned homes is currently at an 11-year low, which is sustaining the home buying demand. To put it succinctly, more buyers are chasing fewer homes for sale, which is causing prices to rise.
Builders have also come back into the market and are buying tear down properties as fast as they can find them because there is very little supply of new construction.
The $2 to$3 million price range is particularly lacking in supply. It seems that every Realtor has a buyer waiting in the wings to purchase anything priced from $1 million up to $3 million. Upper tier home sales in the $4 million and above range have not been as strong. But there have been a handful of off-market sales ranging from $5 to $9 million.
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