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Old 02-05-2010, 03:15 PM
 
116 posts, read 371,784 times
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Do you think that Southlake home values will depreciate? We have lived and seen this in FL, CA, NC. It seems that FL and CA real estate markets were one of the first to depreciate. Charlotte in NC is depreciating at this point. I see the same characteristic with Southlake. Big homes with high price in a relatively new area. Who can afford these $$$ homes in Southlake?
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Old 02-05-2010, 05:09 PM
 
Location: TX
3,029 posts, read 10,782,199 times
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I have no crystal ball.... But yes values in most areas have dropped in recent years just they way the econ was going. But...all n all I would say Southlake has held it's value pretty good.

It has an excellent public school system (and that is a big drivng force).
It has had VERY controlled growth, NO apartments at all, A high end Shopping area/town center. So it has a good retail tax base.
Although there are some older lower value homes (and yes a trailer park) the vast Majority of homes are over 3000sqft and over 300k. NO low end builders etc... Neighborhood "standards" for new builders are pretty high. 1/2 acre lots etc...

So, since the values have dropped a bit and the market is starting to pick up again...I would say now would probably be a good time to get a very nice house for a good price in Southlake.

BUT...this is all my opinion.
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Old 02-05-2010, 05:12 PM
Status: "The Mysterious Q" (set 14 days ago)
 
Location: DFW - Coppell / Las Colinas
34,092 posts, read 38,077,264 times
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Who can afford them ? people who have good incomes and want a great school district and location.

High priced home sales are soft but there is still a good demand for homes in SL. Our saving grace is we never had a big price explosion like all those places you mentioned.
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Old 02-05-2010, 05:45 PM
 
116 posts, read 371,784 times
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My question is who can afford them. Because when we did some house hunting last November. We have seen many homes around the $1,000,000 range. From looking at the demographics and earning power for Southlake. The incomes do not support the value of the homes. We did like Southlake and could afford to buy a home there. But of course we don't want to see our home depreciate.

Estimated median household income in 2008: $160,241. We are in top 5% looking at the demographics. That's why I am concern.
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Old 02-05-2010, 05:54 PM
 
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The people I know who live in Southlake are doctors, law firm partners, and business owners. I think there are some professional athletes out there, too, and, of course, the disgraced former mayor of Detroit.
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Old 02-05-2010, 05:56 PM
 
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Aren't they afraid of blue ice?
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Old 02-05-2010, 06:21 PM
 
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there are older people in older homes in Southlake who bought their homes 20+ years ago and are retired--they bought long before Southlake became a yuppie haven...their incomes are figured in with doctors, attorneys, people who own their own businesses, vps at companies in Dallas, and plenty of two party incomes for people making 200K

there are lots of people that can afford Southlake homes--there are few foreclosures in Southlake from what I have seen but there are many homes on the market that are not selling for two reasons...in almost every price point--
1--people are moving into this area and want to buy homes but they have not been able to sell their prior home -- can't get any equity out--so can't complete sale
2--few people wanting to live in house in that price range can afford to pay cash for a home that is 1+M--they need a mortgage and even if they have sufficient monthly income it is difficult to get a mortgage of that size now--banks have cut back on their monster loans--

the builders in Southlake went overboard in the 2-3 yrs before the market dumped--they started to develop more custom homes in range above 2M because they thought the market was still going forward--that edge would not see any softness--
the city council did not want to zone for medium density type of developments--they wanted the high end acre+ or at least half acre MacMansion homes because of the elite status and the image-enhancing those provide for Southlake itself--the "enclave" idea
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Old 02-05-2010, 11:07 PM
 
13,180 posts, read 13,297,449 times
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Quote:
Originally Posted by Julia1997 View Post
Do you think that Southlake home values will depreciate? We have lived and seen this in FL, CA, NC. It seems that FL and CA real estate markets were one of the first to depreciate. Charlotte in NC is depreciating at this point. I see the same characteristic with Southlake. Big homes with high price in a relatively new area. Who can afford these $$$ homes in Southlake?
There was never a bubble in DFW. Scarcity of land has never been a problem in North Texas.

Southlake will continue to rise because it has an exclusive small school district, strict zoning laws, and almost no low income areas. No apartments.

It's also close to the airport which is the main economic engine in the area.

It's reached critical mass.

Who lives here?

Anybody that can afford a house $300K and up. There are doctors, business consultants, pilots, business owners, upper management of large companies, etc.
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Old 02-13-2010, 10:45 AM
 
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More like $400K+ in Southlake. Do a quick search of houses for sale in the area, and you're very hard pressed to find anything under $400K in the Southlake ISD.
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Old 02-13-2010, 11:50 AM
 
31,327 posts, read 48,649,278 times
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yes, baseline in Southlake is around 400K
baseline in Colleyville is a little lower--around 325K

but the avg appreciation does not depend on the more expensive homes
sometimes you get better appreciation in the price ranges where more people are buying...
in Southlake and Colleyville--certain neighborhoods saw appreciation last year despite the slow sales because there were few homes on the market in those areas BUT for variety of factors they were desirable locations--
not all neighborhoods were in that lucky juxtaposition...
having new construction sometimes drives the price of already built homes up but not always--the market/banking/financing slump has caused new home prices to drop while some established areas have seen increases...
it all depends on market forces to certain extent and local factors...

the two biggest reasons why Southlake prices might not see big increases in next few years is that 1) there is a glut of homes on the market there, 2) many residents are in upper-level jobs and the hits in that level of employment (vs hourly wage, entry level +7) usually take longer to show up, 3) most people buying are transfers--if they can't sell their old homes, they can't buy here...

Southlake has made a committment to larger value homes on larger lots vs the middle of the road developments in say the 500K range--they want to make themselves an "enclave" type of town...
that might work for them in the long term but if current market forces stay in play it is going to hold down development for near term and maybe longer...
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