Real-estate market in FloMo, Frisco crazy! (Dallas, Plano: sale, obgyn, 2015)

[DfwNoMad]

I've been looking for a house in Flower Mound/Frisco area for the past three months and I can tell the prices have gone way up. When I look at the price history for houses they're selling for atleast 20% over the last sale price on the house. Houses that went for 220K just 2 years ago are being listed for 270K and even those are selling within a matter of days.

Are we in a bubble? What baffles me is how eager people are to pay asking price when the price is inflated. Am I the only chicken in the metroplex? Are there others that think the houses might not hold the current prices and are waiting in the sidelines?

[Rakin]

Actually I just listed a home in Frisco that's up 35% in 3 years. We have about 12 showings booked Thursday (1st day to show) and I expect 5-6 offers (or more) by Saturday.

We are the only home under $300k with a pool. It's a frenzy and if you want it, you'll have to pay the $$.

Most the people who are seeing the house are Relocation from out of state. You snooze, you loose.

[OBGYN14]

We certainly are in a bubble and it may start deflating after an interest hike but areas with most new construction are going to give tough time to sellers. These are the places where most foreclosure happen due to competition from builders.

[TurtleCreek80]

Originally Posted by OBGYN14

We certainly are in a bubble and it may start deflating after an interest hike but areas with most new construction are going to give tough time to sellers. These are the places where most foreclosure happen due to competition from builders.

I completely disagree. We aren't in a bubble. We are in the middle of the largest economic expansion the DFW area has ever seen. In almost 40 years, I can never remember a time where a new company is announcing a move here every 1-2 weeks.

This isn't a speculator's market like Southern California in the mid-2000's where people were buying based on the assumption values were going up and they would be able to cash out big. Prices are going up - particularly in Collin County - because 5-10k families are moving to the area for jobs. There is little on the market because owners fear if they sell, there will be nothing to buy. People are paying more to make sure they have a house to live in NOW, not because they think they'll make money in the future.

I believe the DFW area has a solid 20+ years of major economic growth ahead of is. Sure, there will be some global / national economic bumps in the road that will impact us in the short term (like 2001 tech bust or 2008 housing / stock market crisis), but we will continue to recover and grow faster than most of the US.

[BigDGeek]

That's it, I'm never selling my house in Richardson.

[JTC Mom]

Originally Posted by TurtleCreek80

There is little on the market because owners fear if they sell, there will be nothing to buy.
.

In the area i left when I moved back to Dallas a couple of years ago, it was common for sellers to include a so-called HOC (home of choice) contingency on their listings. An HOC contingency meant that after the buyer won a bidding war they agreed to delay closing or rent back to the seller until the sellers were able to purchase a home that they wanted. Crazy.

[shrapr]

Originally Posted by OBGYN14

We certainly are in a bubble and it may start deflating after an interest hike but areas with most new construction are going to give tough time to sellers. These are the places where most foreclosure happen due to competition from builders.

Wake up my friend. We were thinking the same until last summer, should and could have bought couple of years back and paid the price for procrastinating. But glad we signed the contract at least last summer. I am expecting another price increase in the new builds. Only thing now I am worried is the property taxes but glad we have some homestead protection but still...


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[stephwin]

Originally Posted by Rakin

Actually I just listed a home in Frisco that's up 35% in 3 years.

We aren't listing our house but we would be in a similar position. Bought for $340k in late 2009 and we could probably list and sell for $450k now. A house with the same floorplan and very similar finishes in our neighborhood was listed for $450k and was moved to pending after about a week.

[veuvegirl]

We moved in 2013 and rented. Started looking for houses around $400K. By the beginning of 2014, those houses were snapped up within a day. Once we were ready to buy, houses increased significantly. It's crazy.

[Rakin]

Originally Posted by TurtleCreek80

I completely disagree. We aren't in a bubble. We are in the middle of the largest economic expansion the DFW area has ever seen. In almost 40 years, I can never remember a time where a new company is announcing a move here every 1-2 weeks.

This isn't a speculator's market like Southern California in the mid-2000's where people were buying based on the assumption values were going up and they would be able to cash out big. Prices are going up - particularly in Collin County - because 5-10k families are moving to the area for jobs. There is little on the market because owners fear if they sell, there will be nothing to buy. People are paying more to make sure they have a house to live in NOW, not because they think they'll make money in the future.

I believe the DFW area has a solid 20+ years of major economic growth ahead of is. Sure, there will be some global / national economic bumps in the road that will impact us in the short term (like 2001 tech bust or 2008 housing / stock market crisis), but we will continue to recover and grow faster than most of the US.

I'm a native of the DFW area and 100% agree. We saw some booms over the years but nothing compared to what's going on today. DFW (and Texas) will continue this until we reach at least a population of the 12M that LA has. Many companies are bailing out of the high tax states and making TX home. Those jobs create more jobs.

I have several clients looking to up or down size but are having trouble getting into a home. Thus their homes are not coming on the market since no one will accept contingencies on the sale of existing homes.

It truly is the biggest expansion we've ever seen. We are also losing our reputation as being "Affordable" in terms of housing. It's true if you're coming from the major East / West cities but not from the Heartland.