Is the housing market cooling down? (Dallas, Plano: loan, house, neighborhoods)

[MovingtoDFW]

Originally Posted by dannaflemons

I'm a real estate agent and can tell you that it's still a seller's market. Prices are higher than ever and there's no sign of that ending. But inventory is still low and it's hard for buyer's find what they're looking for. Any house that's priced right is going to sell right now. But many of the homes sitting on the market are doing so because they are overpriced. Even a house in bad condition can sell if it's priced right.

Stargirl007 there are not as many bidding wars now as in the summer months so that's good news for buyers. Also interest rates are REALLY low so that's going to help with the high prices. But no one really knows how long before the rates start going up. Between now and February is a slower time typically for real estate but I wouldn't consider it slow by any means. There is still a huge demand because the supply is so low. The market needs sellers so buyers have more to choose from. Once that happens things will start to even out.

When rates start increasing soon, as the Fed has lately suggested, does that typically result in price drops of homes? Especially, since rates are thought be only on their way up for the next several years.

[qwerty14]

Originally Posted by MovingtoDFW

When rates start increasing soon, as the Fed has lately suggested, does that typically result in price drops of homes? Especially, since rates are thought be only on their way up for the next several years.

The Fed is waiting for the economy and the housing market to be "Strong" enough that an increase in rates does not have a significant effect on the home prices or sales. It is very hard to say if the economy is already at that point or not, so Fed will raise rates(not sure starting when) although slowly with extreme caution.

[Saintmarks]

The ex just listed her house in McKinney (desirable neighborhood zoned for sought after Boyd HS) and got two offers for full list price the day it was listed. Anecdotal yes, but have had others say inventory is low and houses are going fast. From my perspective, it seems new construction this past year (here and Frisco and Prosper) is by far outpacing anything I've seen. since 2007.

[barnabasc]

The market in East Dallas seems to be accelerating. It's surprising how many homes are going down for new builds. Many people are not happy about this. I know some of these teardowns have sold for over $300,000.

[Jimbo302]

We sold our 4bd 2 bath in red oak really fast in Red Oak earlier this year for a bit more than we bought it for three years ago. Seems like it is still a sellers market.

[fwsavemoney]

The housing market may have cooled down as compared to last summer but it is still blazing hot. We lost two houses in the last couple of weeks and had to finally bid over the asking price to get one in West Plano. The houses that are selling slowly are the ones that are crappy but still expect higher prices because it's a sellers market and such houses sold fast during the summer.

[aggierk]

I sincerely hope that all the buyers can afford to pay their mortgages and not cause another bubble.
The banks are supposed to make sure of that.
The prices seem very high but it might be a correction that was needed to account for growing demand.

Having said that I also know of many people just buying second home hoping to rent it out because interest rates are low.
I just hope they have not overreached like last time.

[loves2read]

until more people start earning more money--companies giving decent raises and offering higher salaries--the Fed won't be raising the rates...
and since companies aren't really raising salaries for general employees we are in a vicious cycle...
yes--homes are still seeing price increased and sales volume is strong--but remember we are living in one of the areas w/strong economies--
there are areas where development is pretty stagnant

CA prices are going through the roof still but I think from some articles I have read people are starting to reconsider living there if they can get a viable job elsewhere where housing is "reasonable"
Texas has benefitted from CA flight IMO

[aznkobee]

Lending is definitely not a problem this time around as the rules are very tight. What is fueling the drive up in home prices in CA coastal cities, Miami and NY are foreigners coming in and buying with all cash. In Dallas home prices are fueled by genuine population and job increase which is healthier imo. Although with AA already linked to hong kong, shanghai and soon to be beijing with direct flights, we might see an exponential increase in foreign real estate investment here

[bigdaddycool1111]

Originally Posted by MovingtoDFW

When rates start increasing soon, as the Fed has lately suggested, does that typically result in price drops of homes? Especially, since rates are thought be only on their way up for the next several years.

Historically speaking, house prices typically rise with rate increases in the beginning because people see that interest rate is increasing and they don't want to be too late and miss the train, so they buy a house quicker. Once the fear settles and interest rates stabilize, house prices start settling too.