Normally this time of year would mean a decline in the real estate market, but as we have seen in the last 18 months, real estate is no longer a seasonal business. Happy Fall, Y’all – anything can happen in the seasons of real estate!
Real estate plays the seasonal game for one large reason – the circle of moving starts in the spring. Post-graduates enter their first lease in the spring following graduation. Following a lease end, it might be time for that next step and once again, come spring, it becomes time to graduate from a lease to their first home.
I have been in real estate since I was a college student. That means I have been practicing real estate for half of my life. So here we are 20 years later, and for the first time, the real estate game is no longer seasonal. The changes we are constantly seeing in the real estate market today are unlike anything I’ve seen before. While this trend is caused by COVID, I believe the market has been changed indefinitely.
Part of these trends are still due to the changing seasonal landscape, but our hot fall market is also due to the amount of people relocating to the Dallas-Fort Worth metroplex, and the Park Cities and Preston Hollow area to be more specific. This is partially due to the number of Fortune 500 companies moving to the area, all of which are bringing a handful of C-suite executives gearing up to live in the place that feels the most like the Los Angeles suburbs—Preston Hollow, and the Park Cities.
These prices aren’t scaring away sellers for one very large reason, they are moving from California, and these prices are normal. These prices appear to be a steal for our west coast counterparts, and not just that, they are so inexpensive for our new neighbors that they can offer cash. These prices, in turn, are affecting our comps, values, and appraisals. Today’s rapidly changing real estate market will continue to impact real estate sales for years to come.
Hang tight, it’s going to be an interesting season in the real estate game.