Luxury demand in Dallas is booming, but overvaluation could slow things down, top broker says
Native Texan Allie Beth Allman has been on the Dallas real estate scene for over 35 years.
Chairman and CEO of Allie Beth Allman & Associates, a subsidiary of Berkshire Hathaway, Ms. Allman is one of the city’s top producers. It specializes in luxury listings in the city’s top neighborhoods, including areas such as Preston Hollow, Turtle Creek, Lakewood, and Park Cities, which includes the leafy streets of Highland Park as well as University Park, home to find the George W. Bush Presidential Center located.
“In Park Cities, everything is luxury,” she said. “You can no longer buy a house for less than $ 1.8 million. “
Mansion Global spoke with Ms. Allman about affairs during the pandemic, pricing, and its koi pond.
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Mansion Global: How has the pandemic affected the real estate market in and around Dallas?
Allie Beth Allman: It has certainly increased tremendously. There have been 31 sales over $ 5 million in the past year in the Highland Park area. This number is usually between eight and 12. This is a 50-50 split of local and foreign buyers. There is no consistency – what they want is everywhere, some want condos, some want lots, some want modern, some want traditional. If there is consistency, most of them would prefer a home that doesn’t need work.
MG: Did you sell any homes that were on the market before the pandemic?
ABA: I sold four that had been on the market for over two years, including one that had been listed for five years. They were all priced at $ 8 million and up. They sold for less than initial demand, but at a price that matched what the sellers wanted.
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MG: And the inventory? Is Dallas experiencing a shortage?
ABA: On the upper end there is a lot of inventory. We have no shortage of properties of $ 4 million and over. You go down to the $ 500,000 houses, yes. There is no inventory. Builders sell before they even start. I recently spoke to a builder who is very nervous because the cost of everything is going up, so he doesn’t know what its final cost will be and is worried about being stuck on prices that are too low.
MG: What are your market forecasts for the remainder of 2021?
ABA: I think it’s going to be strong. I feel a little slowdown. What happens is people say, “Well, I’ll put my house on the market if I can get that price,” which is a price they never dreamed of getting. And buyers are finally saying, “Look, this can’t go on like this; I’m not going to pay it. I will wait. If the sellers are realistic and assess the houses at their current value, they still sell.
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MG: What is the most valuable amenity to have in a home right now?
ABA: Space. Large rooms and space for a home office. Safety too. In Park Cities, the police response time is 30 seconds.
MG: Do you have any property that has leaked out?
ABA: I have only moved twice in the past 30 years. I don’t like change.
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MG: What’s your favorite part of your own home?
ABA: My condo has a nice, large deck with room for a koi pond, greenhouse, and garden. And then also, I love having the doorman.
MG: What does luxury mean to you?
ABA: We consider what the size, location, construction, materials and finish are. And often the architect who designed the design adds value. Many of them have exceptional equipment. But the real luxury, where they really start to spend more time and the quality is higher, starts at around $ 4 million. Across Dallas, luxury is the top 10%, which would be Park Cities.
This interview has been edited for length and clarity.
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