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We're currently looking to buy a home. Husband seems to think the Dallas market is softening and wants to wait for a great deal to come along and/or prices to start falling because he thinks the prices will start falling soon. Any thoughts? More specifically the Lake Highlands area? More specifically the Merriman Park Elem School area? Thanks for your opinions!
I live in the area, and homes are selling quite well. Prices have gone up quite a bit actually. It's a built out area, has well maintained homes, has good local schools and the Lake Highlands Town Center at Walnut Hill/Skillman is in progress. I really don't see prices coming down in this particular area.
media hype is just confusing this entire issue of housing costs/values---there are some areas that were overbuilt and have current construction where it is difficult to sell a home...but other areas where there is no new construction except for tear downs and custom builds in areas like Lakewood are not doing that badly---
there can be some houses with problems like over pricing, not updated, location, floor plan, school zone that stay on the market for longer than the avg--and the time for being on the market before selling has probably extended from the past couple of years...but this is the slow time--people aren't putting houses on the market if they don't have to and people are trying not to move because of moving kids from school to school...
Because of the price of gas/commuting--think homes inside the loop will stay strong--
areas like Plano, Allen, Frisco unless you work north of downtown/loop--people are going to be thinking the forbidded word "CARPOOL" by next summer...there is still new construction and lots of unsold builders' homes there--so you can get a price break on stuff that is 30 days away from completion to stuff that is 60 days past---builders, at least some of them, are having to pay on their notes and that is expensive--
Larger companies like Toll and Drees and Horton--have bigger pockets but they are obviously hurting as well...but reselling a home where they are continuing to build is a nightmare because they are cutthroat on adding in extras or cutting their prices--
most homeowners in developments like that who are trying to sell within 2 years of buying are probably going to lose money on their homes when all is said and done...
If you want to wait to shop--fine--just be aware that dropping the Fed rate is likely to acutally make mortgage rates go UP instead of down, and that there are people who are buying homes--although taking their time--so there is competition in some areas of the market--if you have good credit and a decent downpayment, you won't have that much trouble getting a mortgage but people are not wanting to take a contingency contract based on sale of YOUR home--because there is no real security in that with a slow market...
My realtor told me a couple of weeks ago that most of her clients who are relos from out of state (think California, Conneticut, Chicago, Atlanta)--are having trouble buying homes because they can't SELL their home whereever they are moving from--the wife and kids are there and the guy is here in an apt/working and going home maybe every weekend, or every other--they might have found a house/neighborhood but they can't get their equity out to pay down the mortgage and can't get mortgage w/o the equity--so they are just stalled...
She also had one guy moving from California who drove her nuts because he had a newer home (fewer than 5 years) that he put on the market there and the CA listing agent told him that he should reduce his price to about 750K from the 850 or 900K he initially listed it at after a month or so--the guy said he did not want to lose that money and he was not going to sell for less --
now bear in mind that the guy had bought the house for about 600K--so he still stood to MAKE money--he was just not going to make as much as he thought he should--because he was not selling at the top of the market---
My real estate agent was really kind of POed that she had worked with him, they had found a house here they really liked and wanted to make an offer--but he was still locked into the phantom "worth" of his house--so who knows how long it will take for him to live here, his family there before someone is either stupid enough to pay the over-priced price or he reduces his asking price--either way--the house they wanted will be gone because it is in Colleyville or Southlake where things are selling pretty actively...
Last edited by loves2read; 10-31-2007 at 06:14 AM..
I live in the area, and homes are selling quite well. Prices have gone up quite a bit actually. It's a built out area, has well maintained homes, has good local schools and the Lake Highlands Town Center at Walnut Hill/Skillman is in progress. I really don't see prices coming down in this particular area.
I believe that this area has good potential, but it isn't immune to the decline.
Examples: One house on my street in LH has been on the market for a year. Started out at $340k. Is now at $270k.
Or another one, on 9610 Lanshire, which is on my daily bicycle commute, has been on the market for several months and is now down to $250k for a 4702 sf house on a 85x138 lot, with a tax-appraised value (from DCAD) of $336k. This is in a neighborhood with mature trees and very manicured lawns, a rather nice area.
I believe that this area has good potential, but it isn't immune to the decline.
Examples: One house on my street in LH has been on the market for a year. Started out at $340k. Is now at $270k.
Or another one, on 9610 Lanshire, which is on my daily bicycle commute, has been on the market for several months and is now down to $250k for a 4702 sf house on a 85x138 lot, with a tax-appraised value (from DCAD) of $336k. This is in a neighborhood with mature trees and very manicured lawns, a rather nice area.
Really? *perk*
Would this indicate an area in decline or just a slow market?
media hype is just confusing this entire issue of housing costs/values---there are some areas that were overbuilt and have current construction where it is difficult to sell a home...but other areas where there is no new construction except for tear downs and custom builds in areas like Lakewood are not doing that badly---
there can be some houses with problems like over pricing, not updated, location, floor plan, school zone that stay on the market for longer than the avg--and the time for being on the market before selling has probably extended from the past couple of years...but this is the slow time--people aren't putting houses on the market if they don't have to and people are trying not to move because of moving kids from school to school...
Because of the price of gas/commuting--think homes inside the loop will stay strong--
areas like Plano, Allen, Frisco unless you work north of downtown/loop--people are going to be thinking the forbidded word "CARPOOL" by next summer...there is still new construction and lots of unsold builders' homes there--so you can get a price break on stuff that is 30 days away from completion to stuff that is 60 days past---builders, at least some of them, are having to pay on their notes and that is expensive--
Larger companies like Toll and Drees and Horton--have bigger pockets but they are obviously hurting as well...but reselling a home where they are continuing to build is a nightmare because they are cutthroat on adding in extras or cutting their prices--
most homeowners in developments like that who are trying to sell within 2 years of buying are probably going to lose money on their homes when all is said and done...
If you want to wait to shop--fine--just be aware that dropping the Fed rate is likely to acutally make mortgage rates go UP instead of down, and that there are people who are buying homes--although taking their time--so there is competition in some areas of the market--if you have good credit and a decent downpayment, you won't have that much trouble getting a mortgage but people are not wanting to take a contingency contract based on sale of YOUR home--because there is no real security in that with a slow market...
My realtor told me a couple of weeks ago that most of her clients who are relos from out of state (think California, Conneticut, Chicago, Atlanta)--are having trouble buying homes because they can't SELL their home whereever they are moving from--the wife and kids are there and the guy is here in an apt/working and going home maybe every weekend, or every other--they might have found a house/neighborhood but they can't get their equity out to pay down the mortgage and can't get mortgage w/o the equity--so they are just stalled...
She also had one guy moving from California who drove her nuts because he had a newer home (fewer than 5 years) that he put on the market there and the CA listing agent told him that he should reduce his price to about 750K from the 850 or 900K he initially listed it at after a month or so--the guy said he did not want to lose that money and he was not going to sell for less --
now bear in mind that the guy had bought the house for about 600K--so he still stood to MAKE money--he was just not going to make as much as he thought he should--because he was not selling at the top of the market---
My real estate agent was really kind of POed that she had worked with him, they had found a house here they really liked and wanted to make an offer--but he was still locked into the phantom "worth" of his house--so who knows how long it will take for him to live here, his family there before someone is either stupid enough to pay the over-priced price or he reduces his asking price--either way--the house they wanted will be gone because it is in Colleyville or Southlake where things are selling pretty actively...
From Lakewood resident: The biggest slowdown we have seen is in the sales of the newer homes in our neighborhood. We also have noticed that anything priced over 700K is taking almost twice as long to sell. Homes which are priced at 600K and below seem to keep moving here, within a 90 day sell-period. The new builds have lagged quite a bit in the Lakewood market, and I have noticed they are slowing down the building a bit.
I think, personal opinion here, that Dallas is just a little behind the curve on the market slowdown. S&P says that our market is still strong, and numbers are still showing small percentages of growth until September, but in September, we had a sharp drop in sales, both inside metroplex and outer suburbs.
My advice? Wait until after the new year before you purchase.
"The five cities where prices are still rising — Atlanta, Charlotte, N.C., Dallas, Portland, Ore., and Seattle — have reported growth is slowing. Atlanta and Dallas are close to moving into negative territory, S&P said."
I believe that this area has good potential, but it isn't immune to the decline.
Examples: One house on my street in LH has been on the market for a year. Started out at $340k. Is now at $270k.
Or another one, on 9610 Lanshire, which is on my daily bicycle commute, has been on the market for several months and is now down to $250k for a 4702 sf house on a 85x138 lot, with a tax-appraised value (from DCAD) of $336k. This is in a neighborhood with mature trees and very manicured lawns, a rather nice area.
These issues could be with the particular home. We have one home in our neighborhood that's been on the market for a while. It hasn't been updated in quite some time and in a market that isn't hot-hot-hot, not having a move-in ready home drastically slows your sale down unless that handy-man finds it and you are willing to let it go for a price that would allow investments.
$250K for 4702 sq ft. That's only $53/ft, which is quite low. Two issues I see with it. A person moving to LH and only wanting to spend $250K probably isn't really looking for a house that big. I mean, my goodness, imagine the utility bills! We paid basically the same price for our home, which is 2576 sq ft. Before we upped the insulation and replaced the 17-year old HVAC, a relatively mild month had an electric bill of $450. EEKS! With the updates, June/July/Aug averaged $195/month. So even with energy efficient upgrades, a 4700 sq ft home is going to cost $450/month in a mild summer like we had or more like $550-600/month if there is someone home all day (we do set backs while we're both at work).
We bought our home around $98/ft, which was below the $110-120/ft in my neighborhood when we bought because it was a fixer-upper. As an example, the bathtub in the master was actually removed, where the tub was initially was converted into a shower with questionable tiling and the floors in it were still carpet. Homes in the Merriman Park Elementary area are going for $120-130/sq ft at this point and are selling quite quickly. One house across the street was nicely updated and well maintained, sold a couple months ago in about 30 days even though it was priced at $130/sq ft.
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