All those overpriced Dallas estates may not be so overpriced anymore. Take Highland Park, for example. It is now not uncommon to see estates - many of which have been sitting on the market for well over six months now - to be going for much, much less than their original sales price. Luxury real estate owners are now relenting and lowering prices; and not just a little.
There’s one thing for certain when it comes to Dallas luxury real estate: pricing is king. Dramatic price cuts on some of the most highly desired properties in Dallas may just do the trick for many would be buyers.
North Dallas and the Park Cities neighborhoods clearly reflect this dramatic downturn in prices, where shaving $1 million off the price of a house is no longer out of the question.
In fact, more than 25 percent of the homes have seen a reduction of about 8 percent.
This poses quite a problem, given that luxury real estate sales in the Dallas area - specifically, homes priced over $1 million - have fallen by more than 40 percent this year.
Luxury real estate sales in the Park Cities neighborhoods have fallen by 35 percent since the first, eight months of the year while, overall, sales of Dallas homes have fallen about 19 percent. Sales in North Dallas are down nearly 22 percent.
Much, much tougher lending standards have thwarted many buyers from purchasing luxury properties in Dallas, and the weak economy has scared off the rest.
A drop in household wealth, combined with lenders demanding only the most flawless credit scores, has weeded out the majority of buyers in the Dallas area. It only makes sense, as well, that most buyers eligible for luxury real estate have seen their investment portfolio dwindle down over the last year.
In fact, many industry experts have seen the credit market for high-end properties all but disappear, thereby leaving many of these luxury homes sitting on the market.
Bad for sellers; quite the opportunity for buyers. Buyers are calling the shots and are now in the driver’s seat when it comes to their luxury real estate purchase in Dallas.