Everything has changed in real estate over the past 3 full months. So how have the rising interest rates affected Lewisville, Texas?
Let's break down what's happening in each price range.
$250-300k
The 16 or so sales took 14 days to sell (on average). This is more about the price of these properties combined with their condition. The average age of these homes was 1976, and the majority of these homes were NOT MOVE-IN READY. So negotiations had to happen in order to find the right price/true value for each of these homes (which is OK). On average, sellers received 95.4% of their original asking price. There is plenty of buyer demand here from investors and regular folks alike. It's a Healthy price range, with plenty of low-budget buyers competing for affordable homes here.
@ Buyers - The wise move here is to buy an ugly home for a discount and use BANK money to make it look brand new, inside and out. Most buyers don't know that you can include upgrades and renovations into your home loan. Use the market discount to your advantage and use the money you save to get upgrades that are usually only found in new homes. We help you find, design and transform these properties so they fit HOW you do life. It's worth a conversation! Schedule a quick call with me to get the know-how on the least expensive way to live in a custom home.
$300-350k
40 homes sold in around 24 days (on average). This is where the most affordable "move-in ready" homes can be found in Lewisville. The average year built for these sold homes is 1981, with the average size being 1,531 sqft. The prices are low enough to attract buyers from surrounding cities and sellers are getting 97.2% of their original asking price. It's another Healthy price range for buyers and sellers alike.
$350-400k
Almost 47 homes sold in around 27 days on market. The average year built for these homes is 1989 and the average size is 1,813 sqft. Most of these homes may be over 30 years old but they don't look that way on the inside. They are stacked with updates and upgrades to attract buyers who want the "new home look" without paying the full price tag of a new home. Evidence of this is that sellers are getting 97.9% of their original asking price. Higher interest rates have trimmed the number of buyers in most price ranges, but this is where buyers gravitate... To move-in ready homes that don't require renovations to start enjoying them. It's a Healthy price range, with a good balance between inventory and having enough buyers to purchase them.
@ Sellers - Warning: After doing the updates and upgrades, it's too easy to get greedy and ask for 10-20k MORE than you should when choosing their list price. THIS IS A MISTAKE - When you price unrealistically, buyers know this... And by the time you reduce to a fair price, it's too late. Buyers very rarely pay fair market value when they see the weakness of your 20+ days on market. So by asking for 10-20k more than what your property is worth, you end up getting much, much less when you finally do get to the closing table. We will help you get it right from the start, so you get the absolute most money. This is real money at stake!
$400-500k
About 66 homes sold in around 20 days on market (on average). This is the HOTTEST part of the market in Lewisville. Sellers are finding buyers quickly and getting 98.7% of their original asking price. The average year built on homes sold in this price range was 1997, with an average size of 2,273 sqft. These are "older/not too old" larger family homes that are attracting very serious buyers who are looking to save a little money compared to how much these same homes cost in surrounding cities. It's a Healthy price range, with buyers paying fair market value and sellers mostly getting the price they are asking for.
$500-600k
Almost 20 homes sold in about 33 days on market. The majority of these homes were built in the late 90s and early 2000s, with an average size of 2,665 sqft. The bigger, newer homes always struggle to find buyers due to their higher prices during times of higher interest rates. Watching these homes SIT on the market, do you know what happens to their owners after 15 days on the market? To find a buyer, sellers are forced to realize that they will have to drop their price. This is what is happening here. Buyers have the leverage and sellers are willing to sweeten the deal in many ways beyond a discount. Did you know that sellers are allowed to pay money towards reducing your interest rate...Making your mortgage payments go down? This and MORE ways to "sweeten the deal" are on the table for negotiation to get you to buy their home. I would love to talk with you more about how to make these negotiations work for you. This price range? It's a BUYER'S Market.
$600-700k
With an average of only 22 homes sold in 39 days on the market, it's not a good time to be a seller in this price range. Property owners that chose to sell in the past few months are only getting 94.1% of their original asking price. The majority of these homes are located in the newer parts of Lewisville and built in the last 15 years, with an average size of over 3,000 sqft. It's a Buyer's price range, and I expect further discounts over the next few months as well. This part of Lewisville was too "over-hyped", while 3-4% interest rates allowed bidding to run wild, unchecked.
Advice for Lewisville Sellers:
This is the GREAT payoff for owning real estate in the price ranges below 500k, there are plenty of buyers to grab up available homes. Nearby, affluent cities attracted more buyers (armed with cheap interest-rate loans) and they competed in bidding wars that OVER-HYPED their prices. And NOW when home prices have gotten too expensive, buyers go "on the hunt" to find a home they can afford... And this is where the best deals are. Due to this, sellers in Lewisville (for the most part) are keeping their large, recent gains in value. Being surrounded by high-priced real estate doesn't hurt either! By comparison, Lewisville looks like an excellent deal for those looking for a short drive time to work AND getting much more for their money. So it's a great time to sell, especially with recently declining interest rates making mortgage payments more affordable for even MORE buyers. Want to sell at a later time? Then consider an even better option... To convert your house into an income-producing property. It's never too early to think about retirement. There is an opportunity to make a wise decision here, so let's review all of your options so you don't have any regrets. Learning more is just part of the process.
Over 500k? We will have to position your home to win the beauty contest and the price war so we narrowly beat out other homes and get top value. It all starts with knowing your competition. And by doing our "buyer simulation" research, we make you MORE money (compared to traditional selling methods).
Advice for Lewisville Buyers:
You have the leverage, the power, and the ability to negotiate big discounts! But since Lewisville is attracting so many buyers, you will have to compete with a few other bidders to get the home you want. It's not a bad thing! In price ranges above 500k, prices are still dropping by 4-7% because there are far more homes than buyers. Advice: Rest easy and feel good about buying here, and target outdated homes to negotiate big discounts. Please consider this: The market deduction for a home with bad flooring may be 20k, while it may only cost 10k to install new floors of your choosing. This puts an extra 10k of equity into your "home piggy bank" that you get paid when you sell this property someday. See how purchasing with strategy can build your retirement funds? Imagine if you leveraged multiple discounts from ugly paint on the walls, an outdated kitchen AND bad flooring. You would get a home with your desired look and feel while gaining 30k or more in equity. As your real estate guide, I would love to answer your toughest questions about how this process works and give you a customized, step-by-step plan to finally have the home of your dreams (at a dream price)! It's ALL within your reach.
In as little as 15 minutes, you can get answers to your real questions...
Thank you for taking the time to read through this real estate guide for homes in the city of Lewisville, Texas. Use this info to get a general idea of what's going on over the past 3 full months, and reach out to me at timothy@timothyhenley to start talking specifics related to you buying or selling a home. Great info is more valuable than gold or silver, and will free you up to see the next steps towards living your new life. Whatever that looks like!
Your Real Estate Guide for Life,
Timothy Henley
Texas Broker
License #572885
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