Expert Advice: How Is the Market for Lots?
July 10th, 2014 | by Michelle
The year began with predictions that lots prices had soared in the region – because they were so hard to come by. And they still are. But the expert agents at Briggs Freeman Sotheby’s International Realty say you can still find them, if you keep your ear to the ground. Here’s a look at some insight in the lot market across North Texas.
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“People can absolutely still scrape and build. We recently sold four lots – two in the Park Cities and two in Preston Hollow, and we had multiple offers on all of them. It’s indicative of our market as a whole – not enough inventory but plenty of buyers out there. Because of that, we are beginning to see builders doing more teardowns in neighborhoods such as Midway Hollow, where you can find older homes that can be torn down.”
“The inventory of residential lots is very low in Dallas, especially for larger lots in some of the prime neighborhoods. You can still scrape and build, but you’re going to pay a premium for those lots. That’s because not only are other buyers searching for them, but also builders are buying them up for spec houses. Year over year, we have seen lot prices in some neighborhoods increasing in the double-digits, and that trend is supposed to continue through 2014.”
“The market for lots is very brisk, and you have to be quick to find the best opportunity – because most are being sold pre-market and many are going to builders. You need a networked agent who knows what’s going to be available. Competition for lots seems to be less intense in Preston Hollow and the city of Dallas portions of Highland Park ISD; inside the Park Cities, the competition is very intense.”
“Developers are actively searching for building sites for luxury mid-rises, high-rises, and townhome developments. I have worked for several years with a developer from Toronto who bought their first site in Dallas in 2005 and will break ground next year. They have identified Dallas as such a growth market that they are looking for new building sites, mainly around Uptown. I’m also getting inquiries from other developers. There’s definitely an energy and interest from serious, experienced multi-family developers.”
Click here to see the latest in real estate news. CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with six offices in Dallas, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.