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Old 11-02-2016, 06:29 PM
 
31 posts, read 41,083 times
Reputation: 34

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I know we are riding in a sellers market (or so I've heard), but after selling my home am kind of stuck in this hole as every home resembling what I am looking for is priced in the ~600K range. These are homes that were priced in the 350K's by mid 2013. How is it possible that anything almost doubles in price in a mere 3 years? Some of these homes would require some serious leap of faith to even acquire at 450K!


I am thinking this is a bubble and it will burst which is why there is no way I can even entertain getting on such ridiculous wagon!


Anybody has some sort of indication of when this bubble may burst or if this is just how it is going to be from now on?


The homes I refer to are 1 to 2 acres, between 2500 and 3500 SQFT and built between 1975 and 2000. The towns I have been looking at are Prosper, Lucas, Frisco, McKinney, Allen and Parker.


And no, they don't mention having a gold mine in their backyard...


Thanks for your input!
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Old 11-02-2016, 06:52 PM
 
13,194 posts, read 28,298,950 times
Reputation: 13142
Why is this so surprising? Collin County is one of the fastest growing counties in the entire US, if not THE fastest growing county. Over 100 people move to Collin County every day. It's a high income county with high paying jobs - and attaching even more high-paying jobs like the 6,000 positions at Toyota's new HQ that pay over $100k on average. Couple that with several fantastic public school districts and big, new housing stock and of course the prices were bound to rise rapidly once the old fields and farms started dwindling in numbers. More demand than inventory causes prices to rise, simple Econ 101.

I don't think it's a bubble; it's a new reality. The rate of price appreciation will slow down at some point (likely in conjunction with rising interest rates), but barring a major national depression, I don't think those homes you're talking about will ever be worth $450k again. Note I said "depression" as the North Texas areas and its diverse, growing economy is positioned to weather a recession pretty well. 2008/2009 were not close to the bloodbath that happened elsewhere in the country. Housing prices dipped a little bit (but not by 25%++), layoffs ticked upwards, but overall the growth engine kept chugging along.
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Old 11-02-2016, 07:09 PM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
Didn't you look at what pricing was for the new house before you sold the old?
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Old 11-02-2016, 07:15 PM
 
Location: Austin
7,244 posts, read 21,811,238 times
Reputation: 10015
You want 1-2 acres and don't think that land prices have appreciated drastically with all the building and relocation into the area? Those are hot areas you're looking at, and you must take Supply and Demand into consideration. There aren't many properties, percentage-wise across the area, that have more than a tract home lot of 60-80' X 120-140'.

Last edited by FalconheadWest; 11-02-2016 at 07:25 PM..
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Old 11-02-2016, 07:19 PM
 
31 posts, read 41,083 times
Reputation: 34
Yes, I did. It is a little bit more complex than that, though. My family has an "acquired taste" so homes have to be gorgeously pretty and desirable. Back when we started looking in july 2015, there was plenty of 450K homes to look at. Later, they all became 500K and now they are in the 600K.

Although I started to look in mid 2015, we didn't have our home ready to sell until August 2016. The house sold in a week, but now it seems we are in quite the pickle...
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Old 11-02-2016, 07:57 PM
 
88 posts, read 122,656 times
Reputation: 104
The housing market has heated up quite a bit in 2016. The higher prices seem like the new reality, and nothing suggests a bubble. Just because prices go up quickly, doesnt mean there is a bubble. Supply and demand is the main driver, with all the new jobs in the area. People are really moving into Dallas from all over the country
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Old 11-02-2016, 08:05 PM
 
Location: 89052 & 75206
8,151 posts, read 8,350,911 times
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Look in Rockwall County possibly?
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Old 11-02-2016, 08:12 PM
 
769 posts, read 782,731 times
Reputation: 1791
Quote:
Originally Posted by avayan View Post
Yes, I did. It is a little bit more complex than that, though. My family has an "acquired taste" so homes have to be gorgeously pretty and desirable.
Well, that combination is expensive!
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Old 11-02-2016, 08:14 PM
 
769 posts, read 782,731 times
Reputation: 1791
Quote:
Originally Posted by avayan View Post
The house sold in a week, but now it seems we are in quite the pickle...
Looks like someone got a steal and you didn't get as much money as you could have.
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Old 11-02-2016, 08:15 PM
 
37,315 posts, read 59,878,910 times
Reputation: 25341
Quote:
Originally Posted by avayan View Post
Yes, I did. It is a little bit more complex than that, though. My family has an "acquired taste" so homes have to be gorgeously pretty and desirable. Back when we started looking in july 2015, there was plenty of 450K homes to look at. Later, they all became 500K and now they are in the 600K.

Although I started to look in mid 2015, we didn't have our home ready to sell until August 2016. The house sold in a week, but now it seems we are in quite the pickle...
Anyone with an "acquired taste" better have acquired the money to go with...
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