Housing Market in DFW (Dallas, San Antonio: house, find a job, movies)

[ea0337]

Originally Posted by serger

Wait for the interest rate hike (after the elections)

A 0.25% rate hike might just add more fuel to the housing market frenzy. I personally don't think the Fed can continue to successively hike rates beyond that, unless they want to precipitate a recession.

[bringiton1]

Originally Posted by ea0337

A 0.25% rate hike might just add more fuel to the housing market frenzy. I personally don't think the Fed can continue to successively hike rates beyond that, unless they want to precipitate a recession.

Dallas housing did not hit hard in 2008 recession because prices did not go up much prior to recession. But now, prices raise almost 40% in some prices in DFW in 3 years. It is crazy especially in frisco. It will be a big hit for sure if there is a recession.

[UnfairPark]

Originally Posted by bringiton1

Dallas housing did not hit hard in 2008 recession because prices did not go up much prior to recession. But now, prices raise almost 40% in some prices in DFW in 3 years. It is crazy especially in frisco. It will be a big hit for sure if there is a recession.

If economy tanks at a point where there are plenty of land and new housing is available then Frisco homeowners are in for a big hit. If things stayed fine until Frisco is builtout then it may not be as bad. If new housing is available then buyers would get better deals from struggling builders, they wouldn't be buying expensive existing homes as Frisco's main selling point is new construction.

[ea0337]

Originally Posted by bringiton1

Dallas housing did not hit hard in 2008 recession because prices did not go up much prior to recession. But now, prices raise almost 40% in some prices in DFW in 3 years. It is crazy especially in frisco. It will be a big hit for sure if there is a recession.

With all the hemming & hawing for a single hike this Dec, a return to higher interest rates may be a far way off.

My realtor told me in 2015 that the market may see a little more upside and may level off after that. I do tend to find that a reasonable scenario. IMO, the influx of new residents to DFW may steer our local economy through a rough patch, if there were to be one.

[Johnhw2]

Don't kid yourself landlords are impacted by property tax levels in tx. Explain your position again try to stay in touch with reality

[Johnhw2]

Originally Posted by lepoisson

Property taxes in Texas and Illinois are fairly similar, but this doesn't affect renters as directly as it does homeowners. Texas property taxes might even be more depending on the school district.

Surprisingly, Illinois has fairly low income tax (don't get any ideas, state of Illinois!). I think it's around 3.75%. Not enough to make much of a difference if you make $50-80K/year. They actually rank #37, so that's pretty low.

4% is about $100 to 200 a month. Doesn't make a difference. I gather you aren't a math or Econ major.

[lepoisson]

Originally Posted by Johnhw2

4% is about $100 to 200 a month. Doesn't make a difference. I gather you aren't a math or Econ major.

You are forgetting that based on your tax situation, you might end up getting most of that back. I'd even wager that most people don't pay anywhere near the full percentage because of deductions, credits, etc.

Missouri (when I lived there) had tax around 6-7%. Because of my income, I ended up getting most refunded.

And yes, landlords are impacted by property tax rates. But how does that affect renters? It's not part of my budget, because I'm not responsible for paying it. I think you are overestimating how much property tax can affect rent. Location and supply/demand have more effect on rent prices than property tax. I've found rentals in Tyler, TX that were just as cheap as the apartments I've rented in other states with much lower property tax.

[Johnhw2]

The landlord rents to make a profit and must pass all his cost including property tax along in the rent rate to stay in business. Without the high property tax rates on rental property in texas the rent would be less. I live in Texas and did not research the income tax impacts of some state you live for you. I lived in Pa and NJ where state and city income taxes were a % of my gross pay at that time. I didn't get a rebate so it was a real cost of living in those places. For this thread to be of general use I mentioned this fact.

[stan4]

Originally Posted by lepoisson

Suburban America is the worst place for people in their 20s. It just so happens that DFW is primarily suburban.

You do know that many people in their 20s are over the club scene, bar scene, party scene, hookup scene, go-out-every-night scene, right?

I spent 5 years in Austin doing my undergrad. By the time I graduated and moved back here, I was over going out. Happy to just have a nice gym, a good grocery store, and a well-stocked library.

[tcualum]

lepoisson...

You offered anecdotal evidence regarding where your college classmates went after college. I can offer anecdotal evidence to the contrary. When my husband and I graduated from TCU we were surprised by how many of our classmates stuck around even if they didn't come from DFW. Most of the ones who stayed are still somewhere in the metroplex raising their families. Anecdotal evidence is self selecting and not worth much.