Housing Market in DFW (Dallas, Richardson: transplants, new home, buyer)

[bringiton1]

I know dallas is growing very fast . I thought increase in home prices because of low inventory.

Wages are not great in DFW. It is not increased and in fact it is decreased in many areas because of more poeple moved to dallas in recent times.

Another point property taxes are so high in texas.

Due to all reasons, i thought housing market currently in bubble.

[Angie682]

Originally Posted by lepoisson

That's true, but I'd imagine that eventually they will level off when/if people stop moving here due to being priced out of the market.

The sub-200K people have mostly been already priced out of DFW unless they want a fixer-upper or a condo/townhome.

I think most people moving here from California, Chicago and the East Coast are looking at much higher price points than 200-300k. It's the locals and people with average salaries that are getting priced out of the market. DFW will always be cheaper for people coming from those areas.

Pre-Great Recession DFW was flooded with low cost entry level homes priced below 200k. This was back in the day when DFW was cheap to live in...You are not ever going to see builders go back to that. Those days are gone. Costs have gone up and they are building homes at a much higher price point.

Personally, I don't think the prices will ever drop to pre-Great Recession levels barring major economic collapse. So if you can afford to buy now you probably should.

[happycrow]

I already see median-income folks priced out of new ownership, period. Plenty of fixer-uppers the investors don't really want to touch, fortunately, but they're getting higher and higher in price. My next move will be out of DFW, b/c if I ever sell my current digs there won't be anything left in the region I can afford.

Otoh, I *don't* see the election affecting sfh prices in DFW in the slightest. If we were going to see a Volker, yeah, that'd matter. But at the end of the day, rhetoric and spin and hype aside, there's just not enough real economic difference between them.

[bringiton1]

I agree that new companies are moving and creating new jobs but its not enough as so many people are also moving at the same time which is creating lot of competition.

Some of the places such as frisco, plano home prices are high and gone up by 20 to 25% in last 2,3 years which is crazy.

Dallas is not SFO or New york. We have so much room to grow in any direction. That is why i feel home prices will go down.

It is just my analysis.

[happycrow]

Dude, my 3/2 built in 1963 on terrible soil in Irving is up 25% in two years. Frisco and Plano should be jumping higher! But the rest is crazy-town.

[EDS_]

Originally Posted by bringiton1

I know dallas is growing very fast . I thought increase in home prices because of low inventory.

Wages are not great in DFW. It is not increased and in fact it is decreased in many areas because of more poeple moved to dallas in recent times.

Another point property taxes are so high in texas.

Due to all reasons, i thought housing market currently in bubble.

DFW sports some of the highest real income and discretionary income metrics in the world. Wages here are up not down over the last year as well. All of this stuff is at your fingertips on the net if you'd care to look.

[mikestrong]

Originally Posted by bringiton1

I agree that new companies are moving and creating new jobs but its not enough as so many people are also moving at the same time which is creating lot of competition.

Some of the places such as frisco, plano home prices are high and gone up by 20 to 25% in last 2,3 years which is crazy.

Dallas is not SFO or New york. We have so much room to grow in any direction. That is why i feel home prices will go down.

It is just my analysis.

50% of my neighborhood I have been selling in Mckinney has been relocations.FYI. My builder wont let me sell to investors so this is real people moving here. That a crazy amount. Next years is when all the big companies hit. Toyota, Fed ex, Liberty mutual, more state farm. At least north of dallas its relos pushing the market.

[serger]

Originally Posted by EDS_

DFW sports some of the highest real income and discretionary income metrics in the world. Wages here are up not down over the last year as well. All of this stuff is at your fingertips on the net if you'd care to look.

They are probably not down but certainly haven't kept up with the rates of increase in home prices, property taxes, insurance. By the number of property tax protests this year in my neighborhood, I also wonder if many of the new comers even realized (beforehand) how much the ongoing costs would be. True, no state income tax, but that 2.5% property tax, on a house that costs, say 3x household income, is equivalent to 7.5% tax on all income.

[charliebear414]

Originally Posted by Angie682

I think most people moving here from California, Chicago and the East Coast are looking at much higher price points than 200-300k. It's the locals and people with average salaries that are getting priced out of the market. DFW will always be cheaper for people coming from those areas.

Pre-Great Recession DFW was flooded with low cost entry level homes priced below 200k. This was back in the day when DFW was cheap to live in...You are not ever going to see builders go back to that. Those days are gone. Costs have gone up and they are building homes at a much higher price point.

Personally, I don't think the prices will ever drop to pre-Great Recession levels barring major economic collapse. So if you can afford to buy now you probably should.

THIS.

I have my townhouse in Dallas and left to Los Angeles 2 years ago. Been renting out my townhouse for the past 3 years. I been tracking the price increase for both the Dallas area and the Los Angeles and growing up int the east coast. So, I have a good overall view of the nation.

Now wondering if it is a bubble or a influx of people. I say for the Dallas area is 85/25, a 85% influx and 25% bubble.

I had a conversation with my native CA wife about my Dallas property/real estate and the CA people coming into Dallas. In general, CA people think houses in Dallas under 400k is cheap compared to those houses if they were in CA. My Dallas house is worth x3 less than a comparable home in CA. Thus, CA buyers will not blink an eye to buy up a house that is below 400k. That's why people move to the midwest, cheap COL. That's what any east or west coasters think, but get ready. I think it'll be a slower growth than the last 2 years but a growth non-the-less and will flatline eventually. When? That can be anyones guess. But I'm guessing a couple years out. Esp. with all the new companies coming in and houses that are being built.

Lets just say I'm not going to sell my investment house anytime soon.

[bringiton1]

Thanks for sharing all your experiences and feedbacks. It really helps me to decide whether to buy or not to buy.

I will put down the numbers and think about buying house.