Flower Mound is an incorporated city in Denton County, Texas. Situated northwest of Dallas, the beloved town has seen substantial growth in the past few decades. Picturesque lake views, extravagant luxury homes, and easy commutes to Dallas and Fort Worth make this charming community a highly desirable place to live. A variety of recreational opportunities are available for residents at nearby Grapevine Lake, such as swimming, fishing, and boating. Meanwhile, families have access to an incredible range of educational options offered at local schools, and business professionals have easy access to a plethora of companies and job offerings.
With a 17 percent increase in population since the 2010 census, it’s evident that more and more Texans are flocking to Flower Mound, making it an excellent time to invest in property. However, buyers and sellers are both wondering: what does the Flower Mound real estate market hold in 2023? While we can’t see into the future, there are many available indicators that point to how Flower Mound’s 2023 market might fare. Let’s find out below.
Flower Mound housing market forecast 2023
Home values increasing
Current data shows an increase in the median cost of a home in Flower Mound over the last year. Right now, the average price for a house in this area of Texas is around $594K. Based on forecasts, there is an expected increase in price over the next year. Between January 2022 to January 2023, the median price for a home in Flower Mound increased by 3.036 percent.
Lowering interest rates
February 2023 saw a 30-year fixed-rate mortgage of around 6.32 percent. While this percentage is up from the rate of 6.12 percent last month, it is still down from the 20-year high of 7.08 percent last fall. Many experts agree that interest rates hit their peak last year, which means they are likely to decrease moving forward. In fact, the Mortgage Bankers Association and the National Association of Realtors both predict that the median 30-year fixed interest rate for a mortgage will settle at around 6.1 percent for the first half of 2023. This means that between now and the end of Q1, interest rates are expected to decrease.
Cost of rent will increase
According to the data, the current average cost for rent in Flower Mound is around $1,991 for a one-bedroom apartment. Moving forward, the price of rent is only expected to increase over the next year.
Investing indicators will favor landlords
With an expected increase in rent over the next year, investing indicators will favor landlords long-term. This means purchasing rental property should yield a decent ROI, or return on investment, down the road. With more and more people moving to Flower Mound, landlords likely won’t have trouble finding renters to fill their properties.
Positive net population migration
Flower Mound has seen exponential population growth over the last few years and only continues to flourish.
Denton County housing market trends 2023
Like Flower Mound itself, Denton County saw an increase in the average cost of a home compared to last year. Pending homes on the market saw a 23% jump just last month. The county is currently experiencing a seller’s market, which means sellers are at an advantage. Over the next year, Denton County is expected to see more increases in housing costs, and the seller’s market is expected to hold strong.
How COVID-19 affected the Flower Mound real estate market
Similarly to the rest of the country, the COVID-19 pandemic significantly impacted the real estate market in Flower Mound and the rest of Texas. Due to a limited supply of homes, the area saw a sharp increase in prices and extreme competition. During that time, sellers often had the upper hand, and many buyers offered well above the asking price. The housing market, however, has cooled off a degree, although buyer demand still exceeds the housing supply.
Foreclosure statistics 2023
Texas saw around 2,340 foreclosures last month, with a foreclosure rate of about one in every 4,886 households. This puts Texas in nineteenth place when compared to other states’ foreclosure rates.
Flower Mound real estate market: Should you invest?
Investing in property in Flower Mound should yield a long-term potential profit of 3.38 percent over the next year. Prices are expected to rise even higher over the next five years, giving the area a potential profit of 16.66 percent. This essentially means that if you invest $100K today, you could potentially yield a profit of $117K by 2028. With this expected increase in profit, now is an excellent time to invest in Flower Mound real estate.
Ready to enter the market?
As shown above, the Flower Mound real estate market has seen significant growth in recent years, which means investing could pay off in the end. With the cost of housing expected to rise over the next year, the sooner you buy property, the more value it’ll receive in the long run. This is especially true if interest rates on mortgages decrease as expected.
If you’re ready to buy a house in Flower Mound, then contact Berry Boyd Group. We are a team of skilled real estate professionals. With years of experience, dedication to client success and satisfaction, and valuable knowledge of the Flower Mound real estate market, we are more than equipped to help you navigate the home buying or selling process.
