Hottest Dallas Housing Market Ever!

[hansolo72]

Originally Posted by skids929

Cost of capital is what drives supply and demand in housing. Not sure I completely agree that more supply at high prices will drive demand down. Possibly a theory I suppose since unemployment is still high and on the fence buyers may pull back. Past few years have had plentiful, artificially priced, supply on the market and it's killed values.

But overall the cycles are driven by low or high interest rates..And the case of the past 20 years or so it wasn't as simple as appraisals and no doc. It was a large segment suddenly had access to the capital (sub-prime) they needed to buy a home. Second, speculators drove up appraisals like crazy in some of those markets. Those mistakes have been learned from, I hope..But interest rates staying this low can only be justified by the rate of unemployment being high..Inflation is coming, whether people want to believe it or not, and I don't care about stats that prove it's not. I can feel increases in the cost of basic items, food for example. It's not going to be pretty if we don't learn to curb the frenzied markets with interest rates.

The market spiked again so quickly this year, I just think it's a great way to get ourselves back into the place we were in. Double-dip housing market potentially..I want a stable housing market that allows my value increase marginally over time. Over time the US housing market has increased, but at the rate we've been doing things over the past 20 years it's eroded median home value increases.

Despite the cyclicality of housing markets it obviously can't be timed, and we rarely realize what went wrong until after the fact. If rates were edged up in say 2000, it would have cooled things off. This coming from someone who plans on selling at some point in the near future, so take this FWIW. If I were in my forever house I really wouldn' t be as concerned I guess.

Great post.

I am in the same situation here in Colorado.

Looking to sell in the next couple years and move to DFW.

The market here in Denver has been doing the same thing. My home value has gone up about 10% in the past year and a half.

I am hoping that interest rates can stay low and support these prices for at least another 2-3 years so that I get get a great sale value on my home here and be able to lock in a low 30 year rate in DFW as soon as we get there.

:P

[Johnhw2]

Originally Posted by Mr. Chad

I guess that's good news for me....so lenders don't forsee home prices spiking out of control?

Texas home prices tend to not spike as east or west coast more regulated market prices do. The best example of why is the supply side of the market, we have available land for residential and do not have long lag time approvals to new construction. So without stricter zoning and not requiring as much off lot investment to build new lots for houses in Texas, the cost and delay in new supply of homes is less in time and less costly. Both the lack of lag and lower cost to develop help prevent spikes as pronounced in more regulated east or west coast markets. I think this is a good thing for the Texas home markets

[Oreo's Mom]

I have recently seen more posting for houses for sale in our neighborhood, I guess home owners are deciding now its the right time to sell. I have noticed an overall increase in asking price compared to a year ago, when we were looking for a house. I am glad we purchased our home last year.

[hansolo72]

Originally Posted by Oreo's Mom

I have recently seen more posting for houses for sale in our neighborhood, I guess home owners are deciding now its the right time to sell. I have noticed an overall increase in asking price compared to a year ago, when we were looking for a house. I am glad we purchased our home last year.

Yeah, prices have spiked quite a bit over the past year.