Did anyone read the D magazine housing issue? (Dallas: sales, 2013)

[deftones]

The premise of the article is Dallas is a seller's market: home sales (volume) are up 30% in some areas, inventory is down, and average home prices are up in high single digit percentages. I know D magazine isn't the greatest source of facts, but the data seems valid.

As a potential first-time home buyer, the article has me a little scared. My wife and I (newly weds) are waiting another year or so to buy a house the good 'ole fashioned way: saving up 20%, paying off some student loans and debt, and trying to decide where we really want to live. From the looks of it, we might have been better off biting the bullet and buying early.

I guess that's the way home buying go?

[jcl_cls02]

Interest rates are also going up. Now is the best time to buy.

[frenzyrider]

Originally Posted by deftones

The premise of the article is Dallas is a seller's market: home sales (volume) are up 30% in some areas, inventory is down, and average home prices are up in high single digit percentages. I know D magazine isn't the greatest source of facts, but the data seems valid.

As a potential first-time home buyer, the article has me a little scared. My wife and I (newly weds) are waiting another year or so to buy a house the good 'ole fashioned way: saving up 20%, paying off some student loans and debt, and trying to decide where we really want to live. From the looks of it, we might have been better off biting the bullet and buying early.

I guess that's the way home buying go?

It is best to do the 'ole fashioned way. You will be happier... interest rates are not going to go up substantially until Fed winds down the buyback of the bonds. We did it the same way... 20% down, 12 month savings, substantial student loan paid off...

[HockDad]

Originally Posted by frenzyrider

It is best to do the 'ole fashioned way. You will be happier... interest rates are not going to go up substantially until Fed winds down the buyback of the bonds. We did it the same way... 20% down, 12 month savings, substantial student loan paid off...

I agree. I would also add to buy less house than you can afford. You might miss a little appreciation, and at times you will wish you had a little nicer house, but not having to stress about a large monthly payment is priceless.

Also, if interest rates go up to fast, prices will likely come down. Too many Dallas peoples have ARM mortgages and people will get stuck and have to sell. Being smart with your money will open up some doors.

[TurtleCreek80]

Originally Posted by frenzyrider

It is best to do the 'ole fashioned way. You will be happier... interest rates are not going to go up substantially until Fed winds down the buyback of the bonds. We did it the same way... 20% down, 12 month savings, substantial student loan paid off...

I agree! Plus, buying the home itself is only one cost. I'm sure being OP's first home, they will want to buy furniture, window coverings, and generally decorate/ change the home to fit their tastes. None of that is inexpensive!

[frenzyrider]

Originally Posted by HockDad

Also, if interest rates go up to fast, prices will likely come down. Too many Dallas peoples have ARM mortgages and people will get stuck and have to sell. Being smart with your money will open up some doors.

^^^ This. Lot of people in this day are opting to get ARM as well. Seriously at this low interest rate why will you want ARM? Most people I spoke to said so that they can afford a nicer home ( didn't 2008 recession ring a bell)

[HockDad]

Originally Posted by frenzyrider

^^^ This. Lot of people in this day are opting to get ARM as well. Seriously at this low interest rate why will you want ARM? Most people I spoke to said so that they can afford a nicer home ( didn't 2008 recession ring a bell)

I think that ARM's make sense for two type of people: 1) you are well off and you know that you can payoff the mortgage if interest rates rise (or significantly pay it down), or 2) you get a 10 year ARM because you absolutely know that in 7 years you are moving houses.

I did an ARM two years ago because my Bank did not do 30 year fixed Jumbo loans and the rate was very low.

[Brookside]

Here's a link to the article:

The Hottest Dallas Housing Market Ever


The article seems to indicate that builder inventory will catch up to the demand by next year and that things will cool off a bit. Now is definitely not the time to buy.

[frenzyrider]

Originally Posted by Brookside

Here's a link to the article:

The Hottest Dallas Housing Market Ever


The article seems to indicate that builder inventory will catch up to the demand by next year and that things will cool off a bit. Now is definitely not the time to buy.

I don't completely agree. It is not like house prices are going to start going down all of a sudden because that will shake the market again. In my mind, they will settle to a new "normal". I think today is still a good time to buy given you do it the 'ole fashioned way. For example, for every 1% increase in interest rates, your purchasing power reduces by 10% for a house. My 2 cents!

[CREW747]

Informative article...

I think interest rates will rise and inventory will even out eventually,but not any time soon.I think "hot" parts of Dallas and certain suburbs will remain in demand for a while,keeping prices high....