Is this really a good time to buy in DFW area? Or are we just hitting "typical" buying season? (Dallas: real estate market, 2014)

[pinipig523]

Are we just hitting typical "buying season" or is this really a good time to buy?

Reason why I ask is because in Estes Park in Southlake - prices are up from 2010-2012 and I don't want to overpay...

Thoughts? You think I'll look back in a year and kick myself?

[jennifw]

Spring is historically a hot time in real estate. A lot of people want to move in the summer for an easier school transition for the kiddos. Prices in DFW declined with the market/financial situation going on in the US in the past few years. They are coming back now and I think will continue to rise. (no data, just my opinion).

You have been on the board for a while. I am surprised you haven't found a home yet!!

[jcl_cls02]

Prices are going up. For new construction, builders will tell you there's a price increase next month, which is about 75% true at times from my own experience. My motto is you snooze, you lose.

[Rakin]

Is it a good time to buy ?

Interest rates are still low but creeping up.
Thousands of people are moving to DFW daily (just read these CD threads) - high demand.
Extremely Low Inventory of homes - shortage of homes.
Developers are raising prices of land to builders.
The Cost of building materials is going up
Builders are raising prices almost monthly
Labor costs are going up
No matter what the Govt say - Inflation is a major factor today.
You control Inflation by raising Interest Rates Higher to slow Inflation
Many areas homes are selling in 2-4 days with multiple offers at asking price or higher.

So in summery...

Inflation, huge demand, shortage of inventory, increasing prices, possible Interest rates increases .... all create a situation where you can buy now or buy next year and pay a much higher price.

OP... You've already lost money by not buying a house 3 months ago.

Just my opinion.

[EDS_]

Originally Posted by Rakin

Is it a good time to buy ?

Interest rates are still low but creeping up.
Thousands of people are moving to DFW daily (just read these CD threads) - high demand.
Extremely Low Inventory of homes - shortage of homes.
Developers are raising prices of land to builders.
The Cost of building materials is going up
Builders are raising prices almost monthly
Labor costs are going up
No matter what the Govt say - Inflation is a major factor today.
You control Inflation by raising Interest Rates Higher to slow Inflation
Many areas homes are selling in 2-4 days with multiple offers at asking price or higher.

So in summery...

Inflation, huge demand, shortage of inventory, increasing prices, possible Interest rates increases .... all create a situation where you can buy now or buy next year and pay a much higher price.

OP... You've already lost money by not buying a house 3 months ago.

Just my opinion.

Inflation?

[Squirl]

Hindsight is simply not available in the present so no one can know for sure if you'd kick yourself by making a home purchase now. I do believe now is better than 6 months from now based on the current trend. I am happy I bought some properties in 2009 & 2010, but I am not ready to sell them yet because I still need to recover selling costs plus original price & renovations. I think next year the prices will be even higher and my plan is to dispose of those acquisitions in 2014-15. I believe the residential real estate market will continue to head north.

[Rakin]

Originally Posted by EDS_

Inflation?

Absolutely...

Been to the grocery store, a restaurant or looked at home prices lately ? Land prices, materials, bricks, wood, labor all have seen significant price increases.

The Govt may not want to talk about Inflation but it's a very real factor. They just can't affordd to raise interest rates on their debt right now. But they will.

In the Northern sectors home prices are up at least 10% if not more. I've seen homes that were going for $105-110 / SF now going for $130-140 / SF.

There are areas south that are still depressed

[EDS_]

Originally Posted by Rakin

Absolutely...

Been to the grocery store, a restaurant or looked at home prices lately ? Land prices, materials, bricks, wood, labor all have seen significant price increases.

The Govt may not want to talk about Inflation but it's a very real factor. They just can't affordd to raise interest rates on their debt right now. But they will.

In the Northern sectors home prices are up at least 10% if not more. I've seen homes that were going for $105-110 / SF now going for $130-140 / SF.

There are areas south that are still depressed

Picking a few items that have increased in price does not indicate general price inflation.

Our own Dallas Federal Reserve Bank developed what many believe is the best inflation measure around.

Trimmed Mean PCE Inflation Rate - Dallas Fed

[txgolfer130]

The longer you wait, the more money you're going to "lose". Opportunity costs will outpace your waiting game.

Have you checked out the Mont Clair park neighborhood in Colleyville just south of Southlake?

[frenzyrider]

^^^ I have to agree on inflation... Everything has gone up. Govt keeps talking about CPI price index excluding gas and food has not gone up much. Really? Gas, food, materials all effect us daily. Why would I care without them included? Don't even get me started on inflation in healthcare premiums and college education...

However, I think the interest rates will be around 5% by end of 2014. If so it will really reduce the purchasing power of home buyers so there will be some correction but will it reduce the home prices? I seriously doubt it. All these opinions are based on generalized market conditions not necessarily for a particular city in DFW. Local city conditions will always be different....