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Old 09-29-2007, 07:08 AM
 
37,315 posts, read 59,540,300 times
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the problem as well that people don't seen to evaluate in tandem is that the price of SOME houses on the market may have dropped--less expensive homes drop less than more expensive ones--BUY the mortgage rates are going back up--so you are caught in a Catch=22 situation -- the house you want to purchase may have gone down 10-20-30K (if it is 400+ house and the owners have been in it years) but because you can't get a cheaper rate--you might actually be paying the same amount as a year or 6 mo ago...and like another poster said--this is not a giveaway market--if people DON"T have to sell when market is slow and they can't get their price, they WON"T sell...
many times during situations like this in the past (and there have been at least 3 that I can think of in past 20 years)--houses were on the market but many of them were houses that people did not want to BUY--bad location, bad schools, too small, in bad condition--take your pick.
Just because a house if for sale does not mean that it is attractive proposition for buyer.
If you buy a house with problems (whatever they are) at a "good" price, you better be sure you can either fix the problems or be happy with the same or a LOWER price when you go to sell...you can't count on outside influences to improve your situation...
PLUS--
I don't think any builders have been hit so hard that they are selling homes at a significant loss (if any) even now---maybe one or two homes in development--but they are making profit on the others...
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Old 09-30-2007, 02:31 AM
 
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There will always be homes that you love, and homes that you don't. I agree that the future can't be predicted, but at least for now, I believe it's fairly safe to say that prices will not be going up anytime soon.

I you are looking at getting a deal on a new home, this would be a great time, since cdelena made a good point that the inventory will be reduced, and I doubt we'll see builders ramp up inventories very quickly.

Pick out the areas you're interested in, and then watch some homes on the MLS and see how quickly they sell. Average for DFW used to be around 69 days I believe, if lots of homes are sitting much longer than that, then it may indicate a trend (also keep in mind there will always be homes on the MLS that don't sell simply because they're ugly, overpriced, or have major issues).
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Old 10-01-2007, 03:00 PM
 
16,087 posts, read 41,022,648 times
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The latest report I saw, going from August to August, showed M-Streets (Stonewall Jackson & Robert E. Lee Elementaries) up $43,000 and Lakewood (Lakewood Elementary) up $32,000. 57 - 62 days on the market...
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Old 10-01-2007, 03:07 PM
 
Location: Deep in the heart of Texas
1,914 posts, read 7,130,303 times
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Well as the sellers of a house (we closed last week) it Is a buyer's market! We didn't get that much for our house and everyone says we were lucky to sell it since there ARE so MANY homes just like ours in McKinney selling for even less! I tell you buying and selling a home in Texas is a ripoff, we came away with nothing!! We made nothing on the house and we owned it for 8 years. If I had known that when I bought it I would have saved my $16K down payment and would have a hefty chunk of change by now. I am leasing a home now that is valued at $250K for only $1200 a month. I think I will be a renter for many, many years!! This whole housing market is ridiculous.
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Old 10-01-2007, 03:49 PM
 
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It's not a rip-off in my neighborhood - see my post, people are making a year's salary on appreciation.

I'm sorry it was a bad experience for you. I hope that will serve as warning to all the Frisco/Allen/McKinney new home looky-loos who visit this site.
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Old 10-01-2007, 04:00 PM
 
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Quote:
Originally Posted by CTR36 View Post
Well as the sellers of a house (we closed last week) it Is a buyer's market! We didn't get that much for our house and everyone says we were lucky to sell it since there ARE so MANY homes just like ours in McKinney selling for even less! I tell you buying and selling a home in Texas is a ripoff, we came away with nothing!! We made nothing on the house and we owned it for 8 years. If I had known that when I bought it I would have saved my $16K down payment and would have a hefty chunk of change by now. I am leasing a home now that is valued at $250K for only $1200 a month. I think I will be a renter for many, many years!! This whole housing market is ridiculous.
Why are you blaming Texas? I can see your frustration, but also keep in mind that Real Estate is down nationwide. On the plus side, you came away without losing any money, took advantage of tax savings from mortgage interest and property taxes, and hopefully even if the house sold for the same price as what you paid, you left with a nice chunk of equity in the house.
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Old 10-01-2007, 04:05 PM
 
93 posts, read 464,778 times
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Quote:
Originally Posted by Lakewooder View Post
The latest report I saw, going from August to August, showed M-Streets (Stonewall Jackson & Robert E. Lee Elementaries) up $43,000 and Lakewood (Lakewood Elementary) up $32,000. 57 - 62 days on the market...
I'd be surprised if we continue to see prices climb, as much of the recently published data isn't including the latest "downturn" results.

In any case, Lakewooder you bring up an excellent point, there are many areas in Dallas where prices should stay firm. I'm sure if you look around your neighborhood you're surrounded by other homes. Neighborhoods way up North, or far South, or anywhere surrounded by empty land will have a harder time going up. Housing, like anything is all about supply and demand, if there's lot of land, it's very easy to increase supply.

The nicer areas inside the 635 circle have gone up considerably simply because there isn't much room to build, and demand surpasses supply. It may look attractive to spend the same amount of money for "more house" and live 45min away, but there's a reason why housing in the outer suburbs is cheaper.
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Old 10-01-2007, 04:08 PM
 
Location: Allen, Texas
670 posts, read 2,989,942 times
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I've had similar experiences outside of Dallas (Little Elm and Mckinney) with selling as CTR did, but those areas are still building and sometimes the same or very similar floorplans as they did even 10 years ago...so it's pain to sell IME anyway. However, I have friends into Dallas more (Garland and Dallas) who have had bigger gains. My aunt's house has gone up quite a bit since she moved to Garland around 1978 or thereabouts. But her daughter's in Allen...um no. I really think it has to do with the fact that those areas (McKinney, Melissa, Anna, and gosh pretty much out there) are going to be building for many, many years to come and big profits *for most people* are not going to be seen. Just my experience and opinion.
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Old 10-01-2007, 04:48 PM
 
Location: Lake Highlands (Dallas)
2,394 posts, read 8,570,137 times
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Isn't it simple supply/demand economics? I realize I am generalizing here, but here goes anyhow:

There are some areas further away from downtown that have had lots of new homes built which have a large inventory of new homes. Those areas will have much more constrained pricing.

The areas that are built out and are closer to downtown, like Lakewood, Park Cities, North Dallas and Lake Highlands that don't have the glut of inventory will have higher appreciation.

I think the decision will vary depending on where you're looking to buy. If you want a home in an area with lots of new homes and inventory - you could buy now before interest rates go up or wait to see what happens with prices - as many new home owners used ARMs over the last few years, and LOTS of those ARMs are coming up over the next year and the signs already point to them being at the breaking point, prices in those areas might see a little deflation, even in the Dallas market.

If you want to buy into a well established area that doesn't have the inventory glut - the time to buy might be now, before rates climb.

Just my 2 cents.
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Old 10-03-2007, 02:44 PM
 
16,087 posts, read 41,022,648 times
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Report: Texas' new home inventory is worrisome 1:48 PM CT | Dallas Morning News | News for Dallas, Texas | Business (http://www.dallasnews.com/sharedcontent/dws/bus/stories/100407dnbustxhomeinventory.1351d5bff.html - broken link)

Report: Texas' new home inventory is worrisome 1:48 PM CT

02:17 PM CDT on Wednesday, October 3, 2007
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com

Texas' new-home market could be stuck in a prolonged downturn unless builders cut back on construction, a new report by Texas A&M University warns.

Moderator cut: do not repost copyrighted articles

Last edited by Yac; 12-13-2007 at 06:45 AM..
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