Buyer expectations are not being met as out-of-state newcomers continue to flock to Dallas. Existing inventory is scarce and it’s not what they are accustomed to.
We reached out to luxury leader Jonathan Rosen, one of the founding agents of the Compass Real Estate office in Dallas and the Rosen Group’s principal agent, for some insights on buyer expectations.
Daltxrealestate.com: What are buyers from other states most surprised by in our market?
Jonathan Rosen: The lack of inventory. It’s small compared with California. Think about it, Beverly Hills is twice the size of the Park Cities. Then there are Bel-Air/Holmby Hills, Brentwood, Malibu, and Hidden Hills. There are so many more areas to select from. We have the Park Cities and Preston Hollow — Preston Hollow suffered in the tornado. We have micro pockets within Highland Park or University Park like Volk Estates, but there are only 3,300 homes in the Park Cities, and that’s where most buyers want to be.
CD: What buyer expectations have we not been able to meet with existing inventory?
JR: Existing inventory is not meeting expectations on the level of finish out and style. We’ll get there in about three years, but we are not there yet. I think it’s funny, before Covid, everyone was interested in smaller and nicer, and now they want big again. We don’t have enough executive-level homes at the moment. We have C-suite houses, but we have owners and presidents looking and not finding what they had in California, New York, or Florida.
CD: If they are not finding what they want, what are they doing?
JR: They are buying temporary homes while we get them connected to the right architects and builders.
CD: What do you find local buyers want after last year?
JR: Our local buyers see the rush of people coming in from out of state. They see values are going up and they know prices will increase, so they are not waiting. They are deciding to move now. They want to go ahead and lock in, prepare for the future, and find homes they can grow into.
CD: What do you see heading into our spring and summer markets, with most of us remaining at home and not vacationing again this year?
JR: We are seeing a lot of remodeling because people spend so much more time at home. They ask us for our resources and are investing in their homes because they know it will pay off when they eventually bring them to market.
CD: Why are buyers moving to Dallas rather than Austin or Houston?
JR: They see a level of sophistication here. We have a lot to offer, and the airport is essential to any relocating business.
CD: Any advice for those headed here, despite our low inventory?
JR: You need an agent that won’t hesitate to say no to you. I say no more than yes because I don’t want a client to end up in the wrong house. Make sure you have the right agent who knows the market because we still see off-market sales. You have to have an agent with knowledge and inside information that can be a trusted advisor.
