The real estate market in Prosper, Texas during 2022 underwent significant shifts as rising mortgage rates and economic conditions reshaped buyer and seller behavior. With a 5.53% average 30-year fixed mortgage rate and rising utility costs, market activity slowed, but home prices saw substantial growth. The landscape reflected cautious investment with steadier demand for luxury and well-featured homes.
Key Takeaways and Trends from the 2022 Real Estate Market in Prosper, TX
1. Pricing Range
Property prices in 2022 ranged from $310,000 for a modest home to $3,975,000 for a luxury estate. While the higher end of the market continued to shine, properties at all price levels witnessed increased valuations.
2. Market Efficiency
Homes sold quickly, averaging 27 days on the market, an increase from the previous year but still reflecting swift transactions. Competitive bidding led to a near 2% premium over listing prices, signifying continued strong demand.
3. Unique Outliers
The most expensive property of the year, a sprawling luxury estate, stood out not only for its price tag but also for its extensive amenities, including indoor recreational facilities and expansive grounds. Notably, this property sold at a $975,000 loss compared to the previous year (see below).
4. Mortgage Rates Impact
The significantly higher mortgage rates in 2022 dampened overall market activity, with total sales dropping by 132 homes compared to 2021. However, due to constrained inventory and steady demand, average prices and price per square foot climbed markedly.
Total Homes Closed
A total of 793 homes changed hands in 2022, marking a dip from the prior year. Among these, 164 were new construction homes, reflecting a continued but modest contribution from developers. Additionally, 181 properties included pools, a slight decline suggesting tempered demand for leisure-oriented features.
Property Pricing Insights
- Minimum Price: $310,000
- Maximum Price: $3,975,000
- Average Price: $901,534
- Median Price: $840,000
While prices at the lower end provided entry points for buyers, the upper end solidified luxury trends, with the most expensive sales further driving the market’s average values.
Property Size and Features
- Bedrooms: The average property featured 4 bedrooms, with homes ranging from 2 to 9 bedrooms.
- Bathrooms: Most homes included 4 bathrooms, with a mix of full and half-bath layouts.
- Square Footage: Average size stood at 3,513 sqft, with homes ranging from 828 to 29,122 sqft.
- Lot Size: Properties averaged 0.318 acres, with the largest lot spanning nearly 6 acres.
Market Dynamics
- Days on Market (DOM): Homes sold in an average of 27 days, showing slightly slower activity compared to the fevered pace of 2021.
- ClsPr/LstPr Ratio: At 101.96%, buyers offered slightly above listing prices on average.
- ClsPr/OLP Ratio: Closed prices reached 100.16% of original listings, closely aligning with expectations.
- Average Price per Square Foot: $256.66, reflecting continued appreciation and a focus on property value per unit space.
Insights into the Most Expensive Prosper, TX Property Sold in 2022
The year’s highlight sale was again the estate that had topped charts in 2021, though it sold this year for $3,975,000, a significant decline (-$975,000) from its prior sale price due to neglect.
Key Highlights:
- Price: $3,975,000
- Beds: 9
- Baths: 11 (10 full, 1 half)
- Square Footage: 29,122 sqft
- Price per Square Foot: $136.49
- Lot Size: ~6 acres
- Days on Market: 20 days
- ClsPr/LstPr Ratio: 79.50%
- ClsPr/OLP Ratio: 79.50%
- Year Built: 1999
This palatial property included high-end features such as multiple garages, an indoor basketball court, and a yoga room. Despite its unique appeal, the property’s lower sale price reflected deferred maintenance and neglect, reminding market participants that condition plays a critical role especially in ultra-luxury sales.
Impact on Market Dynamics:
The sale of this high-profile property underscored a growing caution in the top-tier market. While luxury properties still demanded significant attention, homebuyers demonstrated more scrutiny, particularly in evaluating property condition and value.
Economic context
Average Electricity Costs in Dallas-Fort Worth in 2022
Average electricity prices spiked to $0.18 per kilowatt-hour in 2022, a sharp increase from $0.14 in 2021. Higher energy expenses placed added strain on household budgets, driving demand for energy savings. Homes with modern insulation, solar installations, or energy-saving appliances gained significant appeal during this period.
Average Price for Regular Gasoline in Texas in 2022
Gas prices surged to $3.47 per gallon in 2022, jumping from $2.65 in 2021. The substantial increase in transportation costs likely swayed homebuyers to favor central locations or areas close to public transit. Long commutes to suburban or rural homes might have lost some appeal in light of elevated gas prices.
Average 30-Year Fixed Mortgage Rate in 2022
Mortgage rates climbed steeply to 5.53% in 2022, up from 3.15% the year before. The notable rise in rates significantly impacted affordability, persuading many to reassess their homeownership goals. Homebuyers were urged to secure pre-approval with a local mortgage loan originator to better understand their financial limits in a tightened market.
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Overview of Differences Between the 2021 and 2022 Real Estate Markets in Prosper, Texas
1. Total Homes Sold
- 2022: 793 homes sold
- 2021: 925 homes sold
Difference: Decrease of 132 homes, representing a 14% drop in market activity, likely influenced by higher mortgage rates and reduced buyer affordability.
2. Average Sales Price
- 2022: $901,534
- 2021: $732,081
Difference: Increase of $169,453 (23%), reflecting a strong demand for mid-to-high-end properties despite fewer transactions.
3. Average Price per Square Foot
- 2022: $256.66
- 2021: $204.68
Difference: Increase of $51.98 (25%), signaling higher costs per square foot and more value placed on homes in the market.
4. Average Days on Market (DOM)
- 2022: 27 days
- 2021: 19 days
Difference: Homes took 8 days longer on average to sell in 2022, reflecting a slight softening in the speed of transactions as buyers became more cautious.
5. Close Price to Listing Price (ClsPr/LstPr) Ratio
- 2022: 101.96%
- 2021: 103.75%
Difference: A decrease of 1.79%, showing less competitive bidding and some reduction in buyer urgency.
6. Homes with Pools
- 2022: 181 homes
- 2021: 219 homes
Difference: Decrease of 38 homes, suggesting slightly less demand or availability for homes with pools in 2022 despite their general popularity.
7. New Construction Homes
- 2022: 164 homes
- 2021: 177 homes
Difference: Decrease of 13 homes, indicating a mild slowdown in the supply of new construction properties.
8. Most Expensive Property Sold (the same property two years in a row))
- 2022: $3,975,000
- Beds/Baths: 9/11
- Size: 29,122 sqft
- Features: Indoor basketball court, yoga room, multiple garages, pool, sauna, and more.
- Price per SqFt: $136.49
- DOM: 20 days
- ClsPr/LstPr Ratio: 79.50%
Sold at $975,000 less than in 2021 due to neglect and upkeep issues.
- 2021: $4,950,000
- Beds/Baths: 9/11
- Size: 29,122 sqft
- Features: Identical property as 2022.
- Price per SqFt: $169.97
- DOM: 278 days
- ClsPr/LstPr Ratio: 100.00%
Key Insight
Property condition issues can negatively affect value, with the impact becoming increasingly pronounced as the property’s level of luxury rises.
Summary of Real Estate Market Analysis for Prosper, TX in 2022
The 2022 real estate market in Prosper, Texas demonstrated resilience amidst economic changes. Rising mortgage rates and a slower pace of market activity challenged buyers and sellers. Despite these hurdles, home prices continued to climb, and demand for quality properties remained strong, though contracts closed at a slower pace than in previous years.
Homebuyers and First-Time Homebuyers Perspective
For homebuyers, particularly first-time buyers, mortgage pre-approval has shifted from being a recommendation to a necessity. Securing pre-approval not only shows financial readiness but also garners attention in this competitive market. Without pre-approval, offers are unlikely to be taken seriously. Working with a skilled Realtor can further simplify the home-buying process, ensuring that buyers can make informed decisions and secure their dream home with confidence.
Home-Sellers Perspective
Home sellers in 2022 leaned heavily on Realtors’ expertise to market their properties effectively and guide pricing strategies. With mortgage rate increases influencing buyer affordability, it was even more important to have a trusted real estate advisor to maximize visibility through strategic marketing and to price homes competitively for the best outcomes.
Final Thoughts
Navigating the dynamic and sometimes unpredictable real estate market of Prosper, TX requires expertise, planning, and data-driven decisions. Whether you’re buying your first home or selling your property, having a dedicated realtor by your side can make all the difference. The insights gained from real estate market analysis are the starting point for successful transactions, with a trusted professional ensuring your goals are met.
The Importance of Statistical Data in Prosper, Texas Real Estate Market
Did you know that Appraisers and Realtors rely on historical statistical data to determine a property’s current value?
The data above is just the beginning. This glimpse into the Prosper, Texas real estate market outlines trends but doesn’t capture the full picture. To truly understand the city’s housing market, you’ll need specific insights like zip code analyses, neighborhood breakdowns, and school-district-focused data. Historical trends and comprehensive analyses arm both homebuyers and home sellers with the tools they need to make decisions confidently.
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Oleg Sedletsky REALTOR® in Prosper, Texas. Call/Text 214.940.8149
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I proudly represent JPAR® – Real Estate Brokerage as a REALTOR® and Utopia Mortgage LLC as a Mortgage Loan Originator! My designations and certifications reflect my dedication to helping you achieve your real estate goals in Prosper, TX and other locations in the vibrant Dallas-Fort Worth area!
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A Comprehensive Analysis of Single-Family Residential Housing Market in Prosper, TX: 2010 to Present
Discover the trends, stats, and insights shaping Prosper’s real estate market year by year!
2010-2020
Prosper, TX Real Estate Market Report 2010: Analysis and Trends
Prosper, TX Real Estate Market Report 2011: Analysis and Trends
Prosper, TX Real Estate Market Report 2012: Analysis and Trends
Prosper, TX Real Estate Market Report 2013: Analysis and Trends
Prosper, TX Real Estate Market Report 2014: Analysis and Trends
Prosper, TX Real Estate Market Report 2015: Analysis and Trends
Prosper, TX Real Estate Market Report 2016: Analysis and Trends
Prosper, TX Real Estate Market Report 2017: Analysis and Trends
Prosper, TX Real Estate Market Report 2018: Analysis and Trends
Prosper, TX Real Estate Market Report 2019: Analysis and Trends
Prosper, TX Real Estate Market Report 2020: Analysis and Trends
This market analysis is intended solely for educational purposes. This market analysis is based on data sourced from NTREIS, Inc. This analysis is exclusively focused on single-family homes and does not account for other property types. The total number of real estate transactions within the specified period and location may vary. Data accuracy cannot be guaranteed due to potential input errors made by NTREIS users. This market analysis does not account for all new construction home sales. If you need detailed information about recorded property sales or other public records, please contact the appropriate city or county office.