Luxury multistory housing becoming an option in Southlake
For many years the only housing option available for people looking to live in Southlake was single-family homes. However, in Southlake Town Square, there are now brownstones available for purchase as well as condominiums that are being constructed. The brownstones were built in two phases with the first phase coming online in 2006 and the second in 2014.
The brownstones and condos offer spacious floor plans, top-of-the-line appliances and garages. The starting price for a condominium is $735,000, and prices start at $1.385 million for a brownstone. Although the brownstones and condominiums were met with some skepticism initially by residents concerned with higher-density development, they are almost completely sold out, according to sales representatives.
A new development, The Village at Carillon Parc, is set to follow the trend of luxury multilevel housing in Southlake. The development, which sits on 42 acres between North White Chapel Boulevard and Carroll Avenue on SH 114, is proposed to have three-story residential lofts above retail and restaurants.
The development is expected to come before City Council and the planning and zoning commission this year.
In a presentation, development manager John Terrell said the cost per square foot for a loft is expected to range from $400-$450. Developers say there would be 50-60 lofts available for purchase.
Rentals not a cheap option
In the Dallas-Fort Worth area the median monthly rent cost for a home is $1,695, which is higher than the Texas median of $1,500, according to Zillow.
However, the median cost of home rentals in Grapevine, Colleyville and Southlake surpassed both DFW’s and the state’s median rental prices this year with the median monthly lease amount at $3,911 in Southlake, $2,439 in Colleyville and $2,116 in Grapevine.
For those looking to rent an apartment in Grapevine, as Colleyville and Southlake have no apartments, the average rental price continues to increase as well.
In the Dallas area, the fair market rent for a two-bedroom apartment is $1,031, according to the National Low Income Housing Coalition. In order to afford this level of rent and utilities—without paying more than 30 percent of income on housing—a household must earn $3,437 monthly or $41,240 annually.
Assuming a 40-hour work week, 52 weeks per year, this level of income translates into a wage of $19.83 per hour.
However, in Grapevine, apartment rental rates are much higher than the fair market rent with most two-bedroom apartments starting at $1,500 or higher.
For example, in early July, the cost of the smallest two-bedroom apartment at Camden Riverwalk was $1,719.
Housing inventory for homes under $300,000 dwindling
Realtor Jen Blackwood with Blackwood Real Estate Advisors said the chance of buyers finding a home that is $300,000 and less in Grapevine, Colleyville and Southlake is decreasing every year.
“Most of these are properties sold for lot value only or homes that need extensive renovating,” she said. “With fewer lots left in the area to build new construction on, there is a higher demand for land, particularly large lots, but they are hard to come by.”
Since 2013 there has been an 84 percent decrease in single-family properties available in Southlake for under $300,000 and less, and in Colleyville a 75 percent decrease.
“If you see a single-family home for sale in one of these areas for under 300,000, don’t wait to jump on it; more than likely it’s a great deal,” she said.
Although Grapevine has more homes on the market for $300,000 and less than Colleyville and Southlake, it, too, has seen a decrease in the amount of homes in that price range. In 2015, Grapevine had 278 homes in that price range compared to 85 homes so far this year, representing a 69 percent decrease.
Bidding wars in Grapevine causing homes to sell for more than listed price
If buyers are looking for a home that costs $300,000 or less in Grapevine, they should expect to pay more than the asking price, said Realtor Theresa Mason with MIG Real Estate in Grapevine.
Mason said most of the homes in that price range typically have multiple offers, and buyers who have cash offers usually trump all other offers.
“Because this market is so competitive, buyers are trying to find ways to make their offer most appealing to a seller,” she said. “Cash is king, as they say. But for buyers with financing, we’re seeing people offering to pay cash over appraised value and offering to pay [the]seller’s closing costs just to try to compete with some cash offers. Many buyers will submit letters and family photos with their offer as well.”
In June the median sold price was 1.7 percent higher than the median listing price in Grapevine. Last year, the median buyer paid 2 percent more than the listed price, according to statistics from the Multiple Listing Service.