Highland Park has always stood apart from other luxury communities in Dallas County and the wider DFW Metroplex. Except for the celebrated Highland Park Village and the esteemed Dallas County Club, the area is purely residential, with the overwhelming majority of homes falling into the luxury and ultra-luxury categories. Below, we explore Highland Park's real estate market, including its market prices, trends and forecast for 2024.
Current market conditions
Despite the challenges posed by higher interest rates in 2023, homes in
Highland Park have sustained and, in many cases, increased their value as the marketplace demonstrated significant growth. Both points underscore the uniqueness of Highland Park real estate and similar Dallas County luxury markets, including
Lakewood, the
M Streets, and its Park Cities sibling,
University Park.
Though
Highland Park's high-end real estate market is susceptible to downturns and negative economic influences, the level of affluence here often proves a steadying presence for current owners and potential buyers. In a departure from broader market trends, Highland Park's luxury residential market has thrived, with annual median sale prices soaring by an impressive 29.5% year-over-year between 2022 and 2023.
A month into 2024, the community's luxury real estate market continues to exhibit resilience and promise amidst evolving economic conditions. In January 2024, six homes sold with a median list price of $3,075,000, the latter an increase of 57% from January 2023. Significant home sales during this period include 4408 Lorraine Avenue, with a list price of $9,749,000, and 3900 Euclid Avenue, which was listed at $8.95 million before closing.
The activity early in 2024, traditionally a slow month for Dallas home sales in terms of volume and price, signals a continuing trend of high-value properties in the market drawing interest. It's a testament to the enduring demand for luxury properties, which has continued to outpace the available inventory. Despite a slight decrease in demand from the peak years, the scarcity of quality homes has reduced total transactions compared to pre-Covid levels, yet without impacting the market's positive trajectory.
Market prices and trends
The Highland Park real estate market begins and ends with luxury. Characterized by its diverse portfolio of properties, the only homes that sold for less than $1 million in 2023 were condo units on Lomo Alto Drive near Lemmon Avenue and several of the mid-century and ranch homes in the northwest corner of the community, just west of the DNT.
Home sales and pricing
Highland Park buyers do not typically shy away from lofty asking prices. While always in search of viable and worthwhile deals, they are okay with paying a maximum when the situation warrants it.
- Sales and pricing: For the final quarter of 2023, 19 homes sold at a median sale price of $3,495,000, both increases from 4Q 2022 of 90% and 7.5%, respectively. Sellers achieved 100% of asking during the three-month period.
Of the 74 properties sold in Highland Park throughout 2023, an increase of 21% from 2022, the median sales price was $3,457,500, an increase of 29.5% from the prior year. Based on the median listing, sellers could capture nearly 100% of the asking.
Inventory
With a current supply of 4.3 months, Highland Park is considerably more balanced than many other DFW markets. A bit more level playing field translates into opportunities for both buyers and sellers — more options for the former and a potential increase in sales potential for the latter.
- Current month listings: Entering February 2024, 32 single-family homes are currently listed for sale, with seven pending/under contract or contingent. Those numbers do not include potential off-market deals, though considering the fluidity of the Highland Park market, partnering with an experienced, well-connected real estate professional will open additional opportunities.
As for how long Highland Park homes stay on the market, they don't linger. A median of six days is what it took between listing and offer for the 4th quarter of 2023, a 75% drop from the same time frame in 2022. For the year, the median was eight days, an increase of two days versus 2022.
2024 Forecast
The real estate market may be cyclical, but every year brings a unique set of conditions that impact both buyers and sellers and the success of their respective real estate transactions. In addition to 2024 being a presidential election year, interest rates will remain a significant focal point.
Interest rates
As Highland Park proved in 2023, when interest rates reached 20-year highs of nearly 8%, there is some truth in high mortgage rates being less of a hurdle in affluent markets. However, not every buyer deals in cash, and many more have the luxury of taking a wait-and-see approach to buying. The result is many would-be buyers stayed where they were, able to wait out the market. Many also took comfort with a historically low mortgage rate secured less during the pandemic-driven market.
Provided the Federal Reserve follows through on potential interest rate cuts over the next 12 to 24 months, such a move would invigorate the market, inviting more competition. Or, in Highland Park's case, further boost an already active marketplace well ahead of similar high-end residential areas. As of February 1, 2024, the 30-year fixed-rate mortgage is 6.63%; the 15-year fixed-rate is 6.30%. For those seeking a 30-year jumbo rate package, the number is 7.13%.
Pricing and demand
Expect a downward rate shift to bolster demand and increase luxury home prices. The unique characteristics of this market, including a significant portion of transactions occurring off-market, highlight the continued appeal of high-end homes. Buyers who want to avoid pricing out of a specific home segment in Highland Park will want to explore their purchase options within the next six months.
It's also worth noting that regardless of economic conditions,
DFW continues to grow. Annual growth topped 170,000 people between July 2021 and July 2022. If trends continue as expected, North Texas will cross the 7 million resident threshold in 2027 and start flirting with the 10 million mark as early as 2030. Don't expect the need and demand for homes, especially the type of luxury residence found in Highland Park, to wane anytime soon.
Want to explore more of Highland Park real estate?
Whether you're ready to buy a luxury home in Highland Park or are considering listing one you already own,
contact Christi Weinstein today to start your real estate journey with a client-focused real estate professional. As a Dallas native, graduate of SMU, and longtime resident, allow Christi's experience and expertise to guide you through the nuances of Highland Park real estate and ensure your next purchase or sale is both lucrative and highly rewarding.
