How is Dallas/Ft. Worth handling it's rapid growth? (Plano: real estate market, 2013)

[Gravy Train]

Originally Posted by BLDSoon

I just love how people love to spew this argument when it suits them. That's almost never their stance when values go the other way and the bank still expects the mortgage paid.

BRB, setting up shame-poll thread for TARP recipients now swimming in speculative equity pending future sale to upgrade, downsize or HELOC-funded bass boat.

[TheOverdog]

That's almost never their stance when values go the other way and the bank still expects the mortgage paid.

The bank has no expectation that the mortgage will always be paid - that's why they charge interest.

[BLDSoon]

Originally Posted by TheOverdog

The bank has no expectation that the mortgage will always be paid - that's why they charge interest.

Umm.....banks charge interest because they are BANKS. And newsflash, yes, they expect to be paid. They bet on that fact daily. ( and also bet on the fact that there are those like you out there that think they don't)

[calgirlinnc]

Originally Posted by TheOverdog

The bank has no expectation that the mortgage will always be paid - that's why they charge interest.

Not so, otherwise anyone could get a mortgage. This is why there are credit scores, etc.

[LocalPlanner]

DFW has a strong street grid and a dense freeway / tollway network. What more do you want? In any growing, thriving area there will be traffic congestion, it's a given. And six lane thoroughfares aren't wide enough? What? When are folks going to accept that a successful area will be congested, and that freeway / highway widenings have a limited impact at best (they're really good at shifting congestion to the next bottleneck, though).

And in any such thriving areas without reasonable walking / biking / transit alternatives, you just have to live with congestion. What about this do folks have a hard time understanding?

[TheOverdog]

Umm.....banks charge interest because they are BANKS.

That's a tautology - ie it's totally meaningless. Furniture stores also charge interest - so does that mean they are secretly banks?

Interest is charged because the interest rate represents the generalized risk of someone not repaying their loan. Credit scores are tools used to determine someone's individual risk, since banks don't really take your word for such things.

[DTXman34]

Originally Posted by LocalPlanner

DFW has a strong street grid and a dense freeway / tollway network. What more do you want? In any growing, thriving area there will be traffic congestion, it's a given. And six lane thoroughfares aren't wide enough? What? When are folks going to accept that a successful area will be congested, and that freeway / highway widenings have a limited impact at best (they're really good at shifting congestion to the next bottleneck, though).

And in any such thriving areas without reasonable walking / biking / transit alternatives, you just have to live with congestion. What about this do folks have a hard time understanding?

YES YES YES! Thank you, LocalPlanner!

We need to adapt to our changing circumstances and transportation planning straight out of 1970 is not sufficient for the needs of 2017. In 2017, multi-nodal transportation options are the new norm. Yes, cars are still apart of it. But it's no longer sustainable to continue to solely build for single occupancy vehicles.

[EDS_]

Originally Posted by Gravy Train

Middle-school economics lesson aside, I'll change my wording from 'overpriced,' to 'overvalued,' and value is subjective. Fortunately we also have trending ownership cost data to refer to and this current market is among the worst for value to a first-time homebuyer or those with minimal purchase equity.

None of that matters really at least for now. Buyers and sellers set prices not people sitting on the sidelines.

[Gravy Train]

Sure it matters-- Price and inventory sets the tone for overall sustainability of the market and a significant segment of buyers have been sidelined.

We're into the second consecutive week of falling mortgage application volume, in May no less:

Mortgage volume drops 4.1% in latest week as younger buyers bail out

The drop may be due in part to higher home prices and, in turn, fewer entry-level buyers able to afford a home. Total application volume fell 4.1 percent on a seasonally adjusted basis from the previous week. The Mortgage Bankers Association's weekly tally was nearly 16 percent lower than the same week one year ago.

The lack of inventory also seems to be limiting sales volume.

Real estate CEO: Record low housing inventory is 'freaking us out'

"The inventory is reaching historic lows. It's never declined faster than it did last month. It's freaking us out — it's affecting our business; it's limiting our sales," said Glenn Kelman, CEO of Seattle-based Redfin, a real estate firm. "We're going to be fine in terms of market share, but I think the overall industry for the first time is seeing sales volume really limited by the inventory crunch."

[EDS_]

Originally Posted by Gravy Train

Sure it matters-- Price and inventory sets the tone for overall sustainability of the market and a significant segment of buyers have been sidelined.

We're into the second consecutive week of falling mortgage application volume, in May no less:

Mortgage volume drops 4.1% in latest week as younger buyers bail out



The lack of inventory also seems to be limiting sales volume.

Real estate CEO: Record low housing inventory is 'freaking us out'

You are commingling disparate information to bolster your emotional conclusion(s).

You've decided prices are too high. Others, to the point of creating a very hot and long term hot local market across most price ranges, have decided otherwise.

Anyone who knows how the long term credit markets work understands that younger American buyers bailing out over the span of weeks or months has nearly nothing to do with mortgage rates.