Dallas home price gains were the highest in the nation last month !!! (Plano: loan, house prices)

[TurtleCreek80]

Originally Posted by Austrian2

Instead of eating up land and causing traffic nightmares, builders should get incentives from Dallas for remodeling existing homes and reviving the core area.

This is already happening in Dallas without incentives. Drive through the Design District, North Oak Cliff, and the Baylor Med area- places that weren't getting much/any attention 5-10 years ago are booming with construction/ conversion and remodeling. No one at all was living in the Design District in 2008 and now there are thousands of apartments and some really unique residential conversions- one converted warehouse is under contract for over $2.5M as a single family residence right now! This demand will continue to spread to adjacent neighborhoods when people get priced out of these.

Drive through North, Northwest, Northeast, and East Dallas and try to go more than 2-3 blocks without seeing a remodel dumpster. Most blocks in my North Dallas neighborhood have at least 1 new house being built on an existing lot and at least one house being remodeled. Some blocks have up to 4-5 new builds/remodels in progress.

[TheOverdog]

builders should get incentives from Dallas for remodeling existing homes and reviving the core area.

This is also actually occurring at a pretty high rate (for Dallas) naturally. Even though home prices are getting very high, actual new single family construction is lagging compared to recent history, meaning not nearly as much is being built out on the fringes as has been done in the past. The actual numbers of homes being built are less than half the number that were built in the early 2000s.

I've not seen any legitimate explanation as to why new home construction is so low - must be many factors still tailing to the crisis in 2008.

[TurtleCreek80]

Originally Posted by TheOverdog

I've not seen any legitimate explanation as to why new home construction is so low - must be many factors still tailing to the crisis in 2008.

Several reasons:

1. I think builders are still a little gun-shy from 2007-2010. In the Park Cities/ Preston Hollow, it seems like a much larger percent of new construction is for a specific buyer vs spec homes. There were almost 100 spec homes in progress when the housing crisis began, at prices of $2-6M. I think more builders are letting buyers come to them to mitigate risk.

2. Many builders went out of business during the housing crisis. Presumably, the ones who are left are more calculated risk takers, whether the risk is a $5M spec home in an uber-affluent neighborhood or a 300 home subdivision in an outer suburb. Perhaps they're intentionally trying to keep lower inventory levels on the books to ensure they won't go out of business if the economy tanks again.

3. I have read there is a construction worker shortage, too. People who got laid off in 2007-2009 have found other jobs and don't want to return to the construction industry.

[unknown00]

Originally Posted by TurtleCreek80

Several reasons:

1. I think builders are still a little gun-shy from 2007-2010. In the Park Cities/ Preston Hollow, it seems like a much larger percent of new construction is for a specific buyer vs spec homes. There were almost 100 spec homes in progress when the housing crisis began, at prices of $2-6M. I think more builders are letting buyers come to them to mitigate risk.

2. Many builders went out of business during the housing crisis. Presumably, the ones who are left are more calculated risk takers, whether the risk is a $5M spec home in an uber-affluent neighborhood or a 300 home subdivision in an outer suburb. Perhaps they're intentionally trying to keep lower inventory levels on the books to ensure they won't go out of business if the economy tanks again.

3. I have read there is a construction worker shortage, too. People who got laid off in 2007-2009 have found other jobs and don't want to return to the construction industry.

1. False, you can say gun-shy if it was 2012 but it's 2015 now, housing skyrocking at full force, limited risk

2. True. I was a custom home builder back in the days, the crisis hit me hard, and I haven't built anything since

3. I'm not why you are mentioning this when you mentioned #1. They contradict each other. But 1 reason I disagree with your #1, is cause I agree with your #3. Too many builders these days

[aggierk]

New report: Texas still at risk of home price declines | | Dallas Morning News

[BigDGeek]

Originally Posted by aggierk

New report: Texas still at risk of home price declines | | Dallas Morning News

Good. If the bubble bursts, then I can go to Dallas CAD next year and argue for lower property taxes.

If the bubble does burst, hopefully everyone here didn't mortgage themselves up to the eyeballs or overpay for their houses. Luckily I bought in '09 when there was still blood in the streets, so I'm not scared at all. No plans to move anytime soon either.

[test_new_sw]

In all good school cities, the rents are very high touching $2k. Considering this, assuming their cost to be $400k, isn't buying a much better option?

What about new cities like Frisco, McKinney or any other? Will they change the school stats as time progresses and be good areas to invest/own a home?

Please share your thoughts.

[dolphin99]

Think people. Rising prices are only good for sellers. They are hardly good for owners (higher taxes) or buyers.

The only thing driving it is fiat money creation by the central bank. Banks create the money out of thin air and loan it out, leading to speculative bubbles throughout the economy for the past 15-20 years. This is the final one, that encompasses real estate, stocks, and bonds.

It is going to end in disaster for many, and we are all being turned into serfs.

[BigDGeek]

Originally Posted by dolphin99

It is going to end in disaster for many, and we are all being turned into serfs.

Of course we are...we're well on our way already. But don't say that too loudly around DFW. People might accuse you of being a "progressive" or "Communist."

[aggie972]

Originally Posted by BigDGeek

Of course we are...we're well on our way already. But don't say that too loudly around DFW. People might accuse you of being a "progressive" or "Communist."

He actually sounds more like a dorm room libertarian to me.