What is going on with all of this 400K homes listed at 600K (Dallas: for sale, renting) - Texas (TX) - Page 3 - City-Data Forum

avayan · 11-03-2016, 04:19 AM

Quote:

Originally Posted by Johnhw2

I think Ive seen some bubble like asking price on a few homes but they sit on the market and cut price to catch the strong demand wave.

This is exactly what I have been seeing as well! The asking prices have gone up tremendously, but then it takes months for the home to sell. Through that time, the price is reduced until it finally sells. I guess my strategy will be to wait until one of these homes comes down to the 500K range or so. But like I said, some of these properties require a massive leap of faith for me to pay 450K for them...

avayan · 11-03-2016, 04:23 AM

Quote:

Originally Posted by WorldKlas

Look in Rockwall County possibly?

Have actually contemplated this option as there are some very nice properties in that region at more manageable asking prices. Unfortunately, I work in Allen and 1 hour drive is something I prefer to avoid. That is why I sold the home in the first place!

Maybe this is not about looking for a new home, as much as it is about looking for a new job ;-) Not a lot of what I do in Rockwall, though...

Rakin · 11-03-2016, 04:27 AM

You sold your home. Hopefully you can afford to sit out a few years and gamble there is another major downturn. We've seen maybe 2 here in TX the last 40 years.

Oh yeah, don't forget interest rates are supposed to start going back to normal after the elections. They've already started inching up. They should eventually be up to 5-6%.

VegasMan_72 · 11-03-2016, 04:42 AM

Quote:

Originally Posted by avayan

I have "acquired" the money, what I have not "acquired" is the lunacy to pay 100K+ more for something that does not have that kind of value. Will let others "enjoy" from a 450K home which they were able to acquire for the lightning deal of 600K ;-)

Ok. Then rent. What were you hoping for us to say?

avayan · 11-03-2016, 05:07 AM

Quote:

Originally Posted by VegasMan_72

Ok. Then rent. What were you hoping for us to say?

I was hoping to hear that this was going to get better soon or at least eventually. But "hoping" doesn't shape reality in any way or fashion. If this is the truth, then I will need to shape my Universe around it, just like anybody else.

The information is very appreciated! It surely is depressing, but what can we do? At least I can put the dream of "let's wait until something better shows up" to bed, because with what I am seeing out there, that is truly the one which will not fly.

We learn from our mistakes. Oh, I feel so wise...

TurtleCreek80 · 11-03-2016, 05:34 AM

Quote:

Originally Posted by avayan

I have "acquired" the money, what I have not "acquired" is the lunacy to pay 100K+ more for something that does not have that kind of value. Will let others "enjoy" from a 450K home which they were able to acquire for the lightning deal of 600K ;-)

You're missing the point. The CoCo market has fundamentally changed due to explosive growth over the last few years. If the houses are actually selling for $600k, then that's what they're worth today. Try offering what you think they're worth and see how far that gets you in your home search.

I really hope you got enough for the house you just sold. I fear you did not because given what you're telling us, you probably would have had a feeling of "I can't believe someone just paid THAT for THIS."

UnfairPark · 11-03-2016, 05:40 AM

If you rent a similar home instead of buying for 1-5 years while waiting for economy to tank, you'll waste roughly $50k per year so about $50-250k in rents. Why not pay that upfront and get a home and settle?

Another option is to readjust your taste according to the money you are willing to spend. Sellers are asking high prices because buyers are willing to pay and most sellers are in no rush to get rid of their property for peanuts, they are okay with sitting on market.

To be frank, everyone likes good things but practical people adjust their wants to match their reality. It's just a shelter, any of us can end up in a small mud grave any time with our fancy tastes and all.

EC2005 · 11-03-2016, 05:59 AM

Also, home price appreciation isnt showing any signs of flattening out. If you stay on the sidelines, that $650k home may be further out of your range at $800k in a few years.

We saw a home we liked, it had appreciated significantly over the last 3 years, but we thought it was fair in todays market. We were also aftaid we would be priced out of that area in 3 years, and interest rates could be materially higher then.

We went ahead and bought at a high but fair price. We love the home and are so glad we bit the bullet

UnfairPark · 11-03-2016, 06:05 AM

Exactly. If OP stays in limbo with fingers crossed for a recession. They may end up paying even higher price in few years if prices didn't go down plus higher interest rates and lost rent on top of that.

Rakin · 11-03-2016, 06:10 AM

Quote:

Originally Posted by TurtleCreek80

I really hope you got enough for the house you just sold. I fear you did not because given what you're telling us, you probably would have had a feeling of "I can't believe someone just paid THAT for THIS."

And that's what they said when they went from $300k to $450K.