Inflated home prices (Dallas, Plano, McKinney: crawl space, construction, school district)

[DFW_FTW]

10% - 25% overbidding is the normal and expected for any losing offer.

If you want to win, you need to waive all contingencies and have an all cash offer.

https://www.redfin.com/news/housing-...price-january/

January is shaping up to be the most competitive month in housing history.

The median home sale price surged 16% year over year during the week ending January 9 to an all-time high of $365,000.


Money printer go brrrrrrr

[aggie972]

Back on the topic of Casa Linda/Eastwood area, and how one poster was saying it supposedly gets way too ghetto the further East you travel down Garland road from the Peavy/Garland Road intersection...I present to you this new home being built on Lochwood Blvd that is for sale for just a hare under $1,000,000.

https://www.zillow.com/homedetails/1...26743592_zpid/

And this is a busy street the connects directly to Garland Road. I bet it's not long before more of the older/smaller homes are replaced with new 3,000+ sq. ft. homes that sell for over a million. And its not long before that side of Garland Road is gentrified with many of the auto repair type businesses being replaced by upscale bars, restaurants, fancy cupcake shops, etc.

[NoClueWho]

Originally Posted by aggie972

Back on the topic of Casa Linda/Eastwood area, and how one poster was saying it supposedly gets way too ghetto the further East you travel down Garland road from the Peavy/Garland Road intersection...I present to you this new home being built on Lochwood Blvd that is for sale for just a hare under $1,000,000.

https://www.zillow.com/homedetails/1...26743592_zpid/

And this is a busy street the connects directly to Garland Road. I bet it's not long before more of the older/smaller homes are replaced with new 3,000+ sq. ft. homes that sell for over a million. And its not long before that side of Garland Road is gentrified with many of the auto repair type businesses being replaced by upscale bars, restaurants, fancy cupcake shops, etc.

That design is horrendus and cheap looking for the price, but the scenery and location are awesome/some of the best in all of DFW, so people will pay it.

[EDS_]

Originally Posted by Julio July

That design is horrendus and cheap looking for the price, but the scenery and location are awesome/some of the best in all of DFW, so people will pay it.

That board and batten* + brick in white or off white look has been a thing around here for years and not just here it's big in NY and NE. There're places near me in the millions clad similarly.

*I understand that's not real board and batten FWIIW.

[aggie972]

Originally Posted by Julio July

That design is horrendus and cheap looking for the price, but the scenery and location are awesome/some of the best in all of DFW, so people will pay it.

Someone will pay it. And inspired by the profit this house fetches, other flippers will start buying up the neighboring older/smaller homes and replacing them with similar $1MM+ homes. The duplexes further down Lochwood Blvd right next to the Home Depot are being bought up by investors and converted into single family homes. Some will wonder who would pay a high price for a SFH that close to the busy Garland Road, but people will.

[NoClueWho]

Originally Posted by EDS_

That board and batten* + brick in white or off white look has been a thing around here for years and not just here it's big in NY and NE. There're places near me in the millions clad similarly.

*I understand that's not real board and batten FWIIW.

Yes, I have actually noticed it in Northeast before. Still ugly and cheap looking.

[Sunbather]

Originally Posted by aggie972

Someone will pay it. And inspired by the profit this house fetches, other flippers will start buying up the neighboring older/smaller homes and replacing them with similar $1MM+ homes. The duplexes further down Lochwood Blvd right next to the Home Depot are being bought up by investors and converted into single family homes. Some will wonder who would pay a high price for a SFH that close to the busy Garland Road, but people will.

I don't disagree entirely, but I will also point out a few things that may make the Eastwood and surrounding areas particularly less prone to this than some areas people talk about gentrifying and flipping:

1) The area is 95% owner-occupied homes (when we were looking I say anywhere from 94%-97% listed depending on which realtor's neighborhood profile the information came from) with a very low turnover rate - it can be hard to find homes for sale here. You don't have statistics like Lower Greenville where tons of renters are making big $ selling a home they only owned to rent out or tearing down a rental home they own to build something large and flip it.

2) The majority of the homes in this area are already well-maintained and many of them already updated (not tear-down, but tasteful additions or full interior remodels). This doesn't prevent flipping, but it's not quite as viable in many cases, unless you are going full tear-down, since it's already a desirable home.

3) Because the homes are owner-occupied and well-maintained, the average owner here is doing pretty well. You don't have many people who bought here just looking to sell the house to the highest bidder. They're family homes (people buying to be in the Hexter district), retirees who have been in the neighborhood for a long time, and people like us who wanted a specific house in a specific location. I would think buying the house out from under people (like you've seen in places like Oak Cliff) would take an amount of money that would not be quite as viable.

Just my opinion of course. If anything, I think what you will see is some improvements or flips in the neighborhoods along Peavy across Garland as you head further East. And yes, likely some commercial development along Garland heading North from that Peavy intersection (see: the previous discussion about the Garland thrift store being torn down for apartments).

[NP78]

Originally Posted by Sunbather

I don't disagree entirely, but I will also point out a few things that may make the Eastwood and surrounding areas particularly less prone to this than some areas people talk about gentrifying and flipping:

1) The area is 95% owner-occupied homes (when we were looking I say anywhere from 94%-97% listed depending on which realtor's neighborhood profile the information came from) with a very low turnover rate - it can be hard to find homes for sale here. You don't have statistics like Lower Greenville where tons of renters are making big $ selling a home they only owned to rent out or tearing down a rental home they own to build something large and flip it.

2) The majority of the homes in this area are already well-maintained and many of them already updated (not tear-down, but tasteful additions or full interior remodels). This doesn't prevent flipping, but it's not quite as viable in many cases, unless you are going full tear-down, since it's already a desirable home.

3) Because the homes are owner-occupied and well-maintained, the average owner here is doing pretty well. You don't have many people who bought here just looking to sell the house to the highest bidder. They're family homes (people buying to be in the Hexter district), retirees who have been in the neighborhood for a long time, and people like us who wanted a specific house in a specific location. I would think buying the house out from under people (like you've seen in places like Oak Cliff) would take an amount of money that would not be quite as viable.

Just my opinion of course. If anything, I think what you will see is some improvements or flips in the neighborhoods along Peavy across Garland as you head further East. And yes, likely some commercial development along Garland heading North from that Peavy intersection (see: the previous discussion about the Garland thrift store being torn down for apartments).

I don't think that will stop it to be honest. I live in Lakewood, an area that has also traditionally been almost all owner-occupied homes and certainly well maintained. Yet, I see pretty decent 3/2/2 houses purchased, torn down, and replaced with $1.5M new builds.

Quite a bit of that occurring in OLH as well within the Hexter Zone (although I do agree that it doesn't seem to be that common right now in Eastwood from what I can tell).

It doesn't have to necessarily be a bad thing, if done right, but it seems pretty common in all desirable Dallas neighborhoods.

[TheOverdog]

Yet, I see pretty decent 3/2/2 houses purchased, torn down, and replaced with $1.5M new builds.

The age of those houses means the plumbing has failed, the foundation is probably not great, the windows and layout are outdated, not enough bathrooms, etc. I mean at some point, you have to do so much work modernizing, it's better to tear the whole house down. That may suck for young first time buyers, but they aren't driving the internal new build market, and teardowns are not every home even in the nicest areas of DFW.

[mastershake575]

Originally Posted by TheOverdog

The age of those houses means the plumbing has failed, the foundation is probably not great, the windows and layout are outdated, not enough bathrooms, etc. I mean at some point, you have to do so much work modernizing, it's better to tear the whole house down. That may suck for young first time buyers, but they aren't driving the internal new build market, and teardowns are not every home even in the nicest areas of DFW.

Agreed. I hear people complain about areas like M streets and lakewood having teardowns instead of young homebuyers buying the original houses but very few of them will ever meet the requirements needed (qualifying + down payment for a half million dollar house and then having $80k+ cash on hand to fix the house).

It's going to be way more likely that someone with that amount of available cash will be able to afford to tear it down more so the other way around (not only that it's moot if the original house is updated because then that house is now worth $700k+ and the young homebuyer can't afford it anyways).