Dallas, Texas Real Estate Market (McKinney, Frisco: houses, rental, suburbs)

[Robzherenow]

I live in the New York area and have seen house prices fall or "adjust". Does anyone know how things are going in Dallas Texas? I had plans to buy some property there.

[TXprincess]

In Texas we never experienced a price inflation "bubble". Therefore we are not experiencing an adjustment period. Just modest appreciation depending on location.

[momof2dfw]

Originally Posted by TXprincess

In Texas we never experienced a price inflation "bubble". Therefore we are not experiencing an adjustment period. Just modest appreciation depending on location.

True. The only areas in the Dallas metroplex that have encountered a "cooling off" or a turndown in the real estate market were areas that were too heavily developed and hit w/ tons of investors and foreclosures. Most of those places tend to be in the lower price range markets of new homes in the not so good parts of town (and some of these do exist in the northern suburbs of Frisco and McKinney, not just in the southern sector of Dallas). If your looking for a new or newly built home in for under $150K then I'd pay VERY close attention to the neighborhood and the area. If that is your price range you are much better off looking in older more established neighborhoods that were built and developed before everyone thought that "Texas is cheap" and wanted to buy entire blocks of houses for rental investments. If your looking in the higher price ranges then in some areas you will have to be quick on your toes if it is a highly sought after area that does not see a large turnover.

[socketz]

Excellent advice. Sub 200k, I'd recommend something older. If you can go to 300k, you'll probably be safe in the Northern burbs. In between those numbers, you really need to look at it on a case by case basis.

[Lakewooder]

My area has been averaging 10 - 17% appreciation per year. It's slowed a bit, but we'll have to see what happens with the spring/early summer market.

[socketz]

That was another area that Big D mapped into the 10%+ range as well.

I wish someone would scan that map and post it here.

[GoPadge]

My only caution would be in the areas with the highest foreclosure rates. You may see a softening of the market in those areas.

[socketz]

Foreclosures are generally more prevelant in homes under 200k. If your buying in this price range, I tend to think older more established areas are a much safer play. If you can go into the 300s, then the northern burbs are going to be good for resale.

Completely different buyer.

[Lakewooder]

DFW foreclosure map:

http://www.dallasnews.com/sharedcont...reclosures.pdf

[Spree]

We're finding a couple of foreclosures in Starwood and a bunch of relo's there as well.