Plano House price keep rising ? (Dallas, Richardson: 2014, how much, houses)

[MckinneyOwnr]

Originally Posted by BLDSoon

There's a reason DFW isn't/wasn't priced to match those areas ( including scottsdale) to begin with and those reasons have not changed. Making that parallel is way over simplifying a multi faceted issue.

Things cost what they cost for a reason. When they no longer cost what they should based on the underlying reason the price, is indeed, inflated.

I gave an example (Scottsdale) where pricing has normally greatly exceeded what we see in the DFW area.

If you know the reasons why that is, then list them. I think any reasons you give are going to be extremely weak.

Dallas is a city that has a reputation for large homes with a low cost per square ft. The reason for that is because growth has never been a problem. In the 80's, you could buy a home in the Park Cities for an extremely reasonable price compared to today. What happened during that time? All available land downtown was developed. If you want a new house there now, you've gotta knock something else down to do it.

The northern suburbs however, have never had to deal with this. Plano, Frisco, McKinney... the growth just kept pushing north, which neatly avoided an issue of scarcity, and kept prices low.

It's only now, in 2013-2015, with the most desirable areas of Plano built out, that Plano pricing really took off... and I'm speaking as someone who moved there in 1986.

Soon, pricing levels on a $/sqft basis are going to be about on par with most other major cities, excepting cities that have beachfront access or some other major draw. The gap is going to narrow and it's going to stay that way.

[BLDSoon]

Originally Posted by MckinneyOwnr

I gave an example (Scottsdale) where pricing has normally greatly exceeded what we see in the DFW area.

If you know the reasons why that is, then list them. I think any reasons you give are going to be extremely weak.

Dallas is a city that has a reputation for large homes with a low cost per square ft. The reason for that is because growth has never been a problem. In the 80's, you could buy a home in the Park Cities for an extremely reasonable price compared to today. What happened during that time? All available land downtown was developed. If you want a new house there now, you've gotta knock something else down to do it.

The northern suburbs however, have never had to deal with this. Plano, Frisco, McKinney... the growth just kept pushing north, which neatly avoided an issue of scarcity, and kept prices low.

It's only now, in 2013-2015, with the most desirable areas of Plano built out, that Plano pricing really took off... and I'm speaking as someone who moved there in 1986.

Soon, pricing levels on a $/sqft basis are going to be about on par with most other major cities, excepting cities that have beachfront access or some other major draw. The gap is going to narrow and it's going to stay that way.

I have listed those reasons ad naeseum on the many threads on here about home prices in the area, i really cant do it again here today as i did so already on another post.

You are entitled to your viewpoints and opinion. My stance on the subject is from a point of no emotion or bias. I work in a related industry and see it differently from most on this thread. At the end of the day i dont have a crystal ball, i deduce based on data and trends.

But... To each his own...

[san11]

Price are increasing more than salary increase per year.

[Beardown91737]

Prices increasing more than salary should cause upward pressure on salaries, which causes a lower demand to locate jobs in the area, which will relieve prices on homes, which will lead to builders cancelling what they haven't sold, which stabilizes the supply, and lowering the price on the houses they must complete.

[wallawallahoohoo]

Originally Posted by san11

Price are increasing more than salary increase per year.

Bingo. No one I know is seeing a 10%+ yoy increase in their wages. It's not sustainable in Dallas - it's landlocked, most "comp" cities are on the coast and thus, more desirable. I anticipate somethings gotta give, and it's likely not salaries.

[san11]

Only person winning is this price rise is realtor and city tax collection.

Realtors are getting 6% easy commission in this market.
Realtors don't have to work too hard in this market. Houses are selling very fast. It's easy money for them
They are the real winners in this market.

Some people are selling their house because of increased tax they have to pay.

Even people living in the same house are paying considerably more tax. That tax hike is now a days more than their yearly pay hike. they are losing in this market too.

On top of these issue traffic is increasing many folds.

Other big winners are big corporations. They got so many incentives from the cities and now everybody is paying in one way or other.

So, winners are Realtors, New corporations and City tax collection .
Losers :- Everybody else.

[pistisan]

Originally Posted by san11

Only person winning is this price rise is realtor and city tax collection.

Realtors are getting 6% easy commission in this market.
Realtors don't have to work too hard in this market. Houses are selling very fast. It's easy money for them
They are the real winners in this market.

Some people are selling their house because of increased tax they have to pay.

Even people living in the same house are paying considerably more tax. That tax hike is now a days more than their yearly pay hike. they are losing in this market too.

On top of these issue traffic is increasing many folds.

Other big winners are big corporations. They got so many incentives from the cities and now everybody is paying in one way or other.

So, winners are Realtors, New corporations and City tax collection .
Losers :- Everybody else.

I agree almost everything you said, but Buyer Agents actually have to work harder in this seller's market, and we don't get 6% commission in most cases, at best 3% if not lower. Hope this makes you feel better.

[san11]

By 6 % Realtor easy commission, i mean 3 % for Seller's agent and 3 % for buyers agent.
Yes, Buyers agent have to work little bit, but not that much.

Truth :- Buyer who is really interested in buying home in this market, is actually working more hard in finding the house than buyer's realtor.
To me in this market, Buyer's realtor is a person who just scares the buyer and tell them to overbid.

[pistisan]

Originally Posted by san11

By 6 % Realtor easy commission, i mean 3 % for Seller's agent and 3 % for buyers agent.
Yes, Buyers agent have to work little bit, but not that much.

Truth :- Buyer who is really interested in buying home in this market, is actually working more hard in finding the house than buyer's realtor.
To me in this market, Buyer's realtor is a person who just scares the buyer and tell them to overbid.

There are many great Buyer's Agent out there, you just need to find one that works for you.

[MckinneyOwnr]

I would hope that no one out there is letting their realtor get 6% in this market. We sold our home and our agent got less than 1%, with the understanding that we would be buying a more expensive home where they would get the 3% from the sellers of that home.

Competition for houses works the same way for realtors and their commissions, go with one who is willing to negotiate.