The 2023 real estate market in Prosper, Texas faced continued challenges with rising mortgage rates, which averaged 7.00% for a 30-year fixed loan. The higher rates, combined with steady economic shifts in energy and fuel costs, added to buyer hesitation and impacted mid-level purchasing power. Although fewer luxury properties sold compared to prior years, the market demonstrated resilience with a substantial increase in total transactions and new home construction relative to 2022. The diversity of property offerings and ongoing demand supported steady pricing trends with slight moderation in market competition.
Key Takeaways and Trends from the 2023 Real Estate Market in Prosper, TX
1. Pricing Range
The properties sold in 2023 ranged from $269,900 to $7,200,000. The price spread reflects the wide variety of homes available, from starter homes to luxury estates. While high-end transactions did occur, newer mid-tier homes saw consistent activity, evidencing broader affordability despite the challenging economic environment.
2. Market Efficiency
The average Days on Market (DOM) rose significantly to 62 days, compared to much shorter transaction periods in 2022. Additionally, the ClsPr/LstPr (close price to listing price) ratio dropped to 97.10%, down from 101.96% in 2022, reflecting tempered buyer activity and increased seller concessions amid rising rates.
3. Unique Outliers
The luxury property market experienced notable activity with the sale of a custom estate at $7,200,000, emphasizing the demand for high-quality, uniquely designed homes. However, a notable decline in pool properties indicated a shift in buyer preferences or reduced inventory for such homes.
4. Mortgage Rates Impact
With Average 30-Year Fixed Mortgage rates reaching a striking 7.00%, buyer affordability decreased. Potential homeowners faced higher monthly payments, which softened competition in some areas, particularly for luxury homes or those requiring larger loans.
Total Homes Closed
A total of 975 homes were sold in 2023, an increase compared to the 793 homes sold in 2022. Among these, 448 were new construction homes, reflecting a growing interest in modern, freshly built homes. Meanwhile, the sale of 161 homes with pools marked a notable drop compared to previous years, pointing to either inventory constraints or changed buyer priorities.
Property Pricing Insights
- Minimum Price: $269,900
- Maximum Price: $7,200,000
- Average Price: $883,987
- Median Price: $805,100
Property pricing remained robust, with the average price stabilizing close to prior year levels despite market pressures.
Property Size and Features
- Bedrooms and Bathrooms: Most homes averaged 4 bedrooms and 4 bathrooms, reflecting family-friendly configurations.
- Square Footage: Property sizes averaged 3,489 sqft, with offerings ranging from compact layouts to expansive estates.
- Lot Size Area: The average lot covered 0.279 acres, accommodating varied property designs for flexibility in amenities and space.
Market Dynamics
- Days on Market (DOM): Homes spent an average of 62 days on the market, indicating slower transactions than in previous years.
- ClsPr/LstPr Ratio: 97.10% reflected softened competition and buyer leverage.
- ClsPr/OLP Ratio: 94.96%, underscoring the importance of realistic initial pricing strategies.
- Average Price per Square Foot: $250.06, signaling consistent cost valuation despite adjustments in other dynamics.
Insights into the Most Expensive Prosper, TX Property Sold in 2023
The most notable property sold in 2023 was a custom-built luxury estate designed for sophistication and functionality. Here are the highlights of this exceptional home:
- Price: $7,200,000
- Beds/Baths: 5 beds, 7 baths
- Square Footage: 10,494 sqft
- Lot Size: 1.923 acres
- Price per SqFt: $686.11
- DOM: 194 days
- ClsPr/LstPr Ratio: 92.90%
- ClsPr/OLP Ratio: 87.27%
- Year Built: 2020
This home set itself apart with features like 19-ft ceilings, two kitchens, dedicated kids and adult game rooms, an infinity-edge pool and spa, custom lighting, an 8-car garage with built-in sports car lifts, and a private gated garage entrance.
The sale showcased the enduring appeal of exclusive, feature-rich properties in Prosper, but it also highlighted the challenges of pricing and demand in the luxury segment. Despite its unique qualities, the property spent significant time on the market and sold below its listing price, reflecting cautious buyer sentiment in the high-end sector.
Economic context
Average Electricity Costs in Dallas-Fort Worth in 2023
Electricity prices dropped slightly to $0.17 per kilowatt-hour in 2023, compared to $0.18 in 2022. While this small decrease provided some relief, energy-efficient homes remained a top priority for homebuyers. Such features offered long-term cost savings that appealed to budget-conscious households.
Average Price for Regular Gasoline in Texas in 2023
Gas prices fell to $3.06 per gallon in 2023, down from $3.47 the previous year. This decline could have renewed interest in suburban properties by making commutes more affordable. homebuyers may have placed higher importance on access to amenities and infrastructure to balance the potential for rising future gas prices.
Average 30-Year Fixed Mortgage Rate in 2023
Mortgage rates increased to 7.00% in 2023, up sharply from 5.53% the prior year. This jump added significant pressure to affordability and homebuyers’ decision-making. Pre-approvals through local mortgage loan originators became essential in helping buyers secure competitive rates and stay within budget during challenging conditions.
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Overview of Differences Between the 2022 and 2023 Real Estate Markets in Prosper, Texas
1. Total Homes Sold
- 2023: 975 homes sold
- 2022: 793 homes sold
Difference: Increase of 182 homes, showing heightened activity in 2023.
2. Average Sales Price
- 2023: $883,987
- 2022: $901,534
Difference: Decrease of $17,547, indicating slight adjustment in pricing amid economic pressures.
3. Average Price per Square Foot
- 2023: $250.06
- 2022: $256.66
Difference: Decline of $6.60 per square foot, reflecting a softening in property valuation trends.
4. Average Days on Market (DOM)
- 2023: 62 days
- 2022: 27 days
Difference: Increase of 35 days, highlighting slowed market activity influenced by rising mortgage rates.
5. Close Price to Listing Price (ClsPr/LstPr) Ratio
- 2023: 97.10%
- 2022: 101.96%
Difference: A drop of 4.86%, pointing to reduced competitiveness and increased seller concessions.
6. Homes with Pools
- 2023: 161
- 2022: 181
Difference: Decline of 20 homes, possibly due to inventory shifts or evolving buyer priorities.
7. New Construction Homes
- 2023: 448
- 2022: 164
Difference: Surge of 284 new builds, suggesting a significant uptick in demand for modern homes.
8. Most Expensive Property Sold
- 2023: Sold for $7,200,000 (5 beds, 7 baths, 10,494 sqft, $686.11 per sq. ft., Infinity-edge pool, 8-car garage, custom high-end features)
- 2022: Sold for $3,975,000 (9 beds, 11 baths, 29,122 sqft, $136.49 per sq. ft., neglected property with past sale at $4,950,000)
Difference: The 2023 top sale outpaced 2022 both in price and high-end features, showcasing luxury home demand despite market cautiousness.
Overall Trends
The 2023 real estate market showed increased sales and a boom in new construction. However, rising mortgage rates led to longer listing periods, softer close-to-list price ratios, and minor declines in prices per square foot. Demand for modern homes, as evidenced by the rise in new builds, drove much of the year’s market activity, while high-end sales highlighted sustained interest in luxury properties. Despite some market softening, Prosper’s real estate market remained resilient.
Summary of Real Estate Market Analysis for Prosper, TX in 2023
The 2023 real estate market in Prosper, Texas exhibited both resilience and adjustment as higher mortgage rates significantly shaped buyer sentiment and market dynamics. While overall transaction volume increased compared to 2022, metrics like Days on Market (DOM) and close price-to-listing price ratios highlighted a tempered pace of sales. Despite these challenges, demand for new construction and well-priced properties underscored the market’s adaptability in navigating economic pressures.
Homebuyers and First-Time Homebuyers Perspective
For homebuyers and particularly first-time homebuyers, 2023 presented both opportunities and hurdles. Rising mortgage rates pushed affordability to its limits, making it more important than ever to approach the market with careful planning and preparation. Securing mortgage pre-approval became a non-negotiable standard for serious buyers in Prosper, ensuring their offers were competitive and considered. Additionally, working with a knowledgeable Realtor who provided deep insights into pricing trends, neighborhood dynamics, and market forecasts proved essential in finding the right property within budget while avoiding unnecessary delays.
Home-Sellers Perspective
Home Sellers in 2023 faced a real estate landscape that required strategic decision-making. With buyers becoming more cautious, pricing homes realistically from the outset and adjusting expectations became critical. The expertise of a Realtor was invaluable in navigating this climate, as sellers relied heavily on professional advice, customized marketing strategies, and effective pricing to meet buyer expectations. Realtors were especially instrumental in helping sellers showcase their properties’ unique features, attracting attention in a competitive market, and ultimately securing favorable deals.
Final Thoughts
The 2023 real estate market in Prosper, TX highlighted the importance of adaptability and strategy for all participants, from buyers seeking dream homes to sellers striving to maximize value. With Prosper’s evolving market conditions, the guidance of a skilled real estate professional is more important than ever to help clients achieve their goals confidently and effectively.
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.