Does this worry anyone in the market now? (Dallas, Plano: insurance, buy)

[TurtleCreek80]

We won't know whether Fitch is correct or not for quite some time - only now can we look back and see that their dire predictions from the last two years were not accurate. I do hope the rate of appreciation slows down because double digits is not sustainable even in a market that has completely transformed like DFW has over the last decade with population and job growth.

That said, real estate is the safest buy when 1) you put 20%+ down and 2) you plan to stay in the home for 5-7+ years. These guidelines are as important in a weak market as a strong one because ultimately they protect the buyer. A 20% down payment ensures you can weather a fairly significant correction and still sell if you get transferred, lose your job, etc. Buying and holding for 5-7 years ensures you'll be able to climb out of any downturn that may occur. A lot of times in rising markets, buyers panic and buy under less than adequate financial circumstances. Those are the buyers who put the whole market at risk.

[Wittgenstein's Ghost]

Originally Posted by TheOverdog

So interest rates are not part of the 'market' but are a separate factor that curtails 'legitimate economic growth'.

Alright.

Quick economics lesson:
Not Legitimate economic growth: theft/extreme bribery/ rebellions
legit economic growth: everything else

I don't know how you got that from anything I said. I clearly stated that interest rates can have a direct impact on the market, and I never said anything about how interest rates affect economic growth. I have no idea how the last part of your comment relates to anything being discussed. By "legitimate economic growth," I simply mean improving fundamentals in the local economy. Rising real estate prices are not necessarily indicative of economic growth, and rising real estate prices can have multiple contributing factors, with economic growth being only part of the explanation.

[Katana49]

Originally Posted by Wittgenstein's Ghost

I don't know how you got that from anything I said. I clearly stated...

I think the fact that multiple people are taking you to task for your comments should tell you that what you are saying is anything but clear.

[octo]

Originally Posted by Katana49

I think the fact that multiple people are taking you to task for your comments should tell you that what you are saying is anything but clear.

I thought the ghost was perfectly clear.

[Wittgenstein's Ghost]

Originally Posted by Katana49

I think the fact that multiple people are taking you to task for your comments should tell you that what you are saying is anything but clear.

If only it were true that clear speaking implied clear communication.....what a world it would be.

[EDS_]

Another tidbit..........

Dallas knocks Atlanta from top spot in small biz ranking | Economy | Dallas News

[Gvine21]

Originally Posted by triciaandpat

I have been a long time "lurker" on these boards. My husband and I moved from California 6 months ago, he is a native Texan born in Fort Worth while I have never lived anywhere but Southern California until now. We were not in a position to buy a home here until recently (as finding an apartment was our first order of business) and this concerns me:
D-FW home prices are 10 to 14 percent overvalued, says Wall Street firm | Real Estate | Dallas News
Any thoughts from those also home searching right now? Thoughts from those who went through the last housing downturn here? It wouldn't seem like prices were so crazy if I hadn't been looking at homes here every November for the last 6 years when we visited my DH's family in Fort Worth for Thanksgiving. I truly don't know if we should "pull the trigger" and buy or rent for a couple years and see what happens. It seems like the cost of home ownership is cheaper than California but when you figure in the highest homeowner insurance rates in the nation and high property taxes the picture doesn't look as rosy. Yes, houses are cheaper but those are sunk costs that do not pay down principal. I'm also seeing $1000 and $2000 dollar deductibles for hail and tornado damage which seems to happen a lot here...Would love some opinions. Feeling like an indecisive fence sitter!

Not to sound rude, but this is a contributing factor to the cost of houses rising.... I've been priced out of my hometown because of it.

[triciaandpat]

Originally Posted by Gvine21

Not to sound rude, but this is a contributing factor to the cost of houses rising.... I've been priced out of my hometown because of it.

Not rude at all, but I think it has a lot to do with big companies/jobs moving here. People move for the jobs. My husband feels the same way as you. He is a Fort Worth native. We can no longer afford the Mistletoe Heights area where his brother lives because the prices have risen dramatically there the last 6 years. Honestly we are in a bad position because he foolishly took a pay cut to come here to be close to his 3 siblings and then was misled by his company about benefit cost and bonuses so we thought we could easily afford a house we love here but at this point we are settling for ticking some of the boxes Truly I wish we had never left Southern California.

[Soonhun]

Nothing wrong with people moving here to work and contribute. I think Dallas-Fort Worth is actually blessed to have unpopular scenery and climate, or we'd have to deal with rich people swiping in from the coasts and other countries just to buy vacation homes or investments.

[dollaztx]

D-FW cranks out another 119,000 new jobs

More than 119,000 new jobs were added in the Dallas-Fort Worth area during the 12-month period ending in February. The total employment base in North Texas grew by about 3.5 percent.

The increase in employment has driven the commercial construction boom and has made the area's housing market one of the tightest in the country. More than 200 people a day are moving to North Texas — many of them seeking new jobs, economists say.

D-FW had more new jobs during the year ending February than all of the other major Texas metro areas combined.

Overvalued? Forget about it!