Buy home now or wait in Frisco/Prosper (Dallas, Plano: real estate, mortgage)

[bringitin]

Hello,

I am planning to buy new house within a month. But i keep on hearing bad things about housing market status due to different factors such as 1. prices are overvalued 2. increase in mortgage rates will effect housing market 3. affordability pressures blah blah blah

Do you guys think i have to wait or buy now?

[Wittgenstein's Ghost]

No one here knows the answer to this question. Some will claim to, but they don't. My personal GUESS is that prices are nearing a high, but I doubt there will be a big drop anytime soon. But who knows...higher rates will reduce your buying power, but because they will do that for everyone, they could also put downward pressure on prices.

[Katana49]

Ask anyone that frequents the Dallas forum whether they are glad they bought when they did or whether they are kicking themselves that they waited.

That's your answer.

People who wait will ultimately lose. Housing is a lot like the stock market... there are ups and downs, but over enough time, the value of your home will go up. That is a fact.

Most knowledgeable posters of this area will tell you that there's at least another 2-3 years of appreciation in store for the DFW area. Rates are rising, but slowly. Not fast enough to put a damper on home purchases on an aggregate scale. If you wait, you'll just join the ranks of people who could have afforded a 3k sq ft house, but now they can only afford a 2.5k sq ft house.

[TurtleCreek80]

Originally Posted by bringitin

Hello,

I am planning to buy new house within a month. But i keep on hearing bad things about housing market status due to different factors such as 1. prices are overvalued 2. increase in mortgage rates will effect housing market 3. affordability pressures blah blah blah

Do you guys think i have to wait or buy now?

Do you plan to live in this house for 5-7+ years?
Are you shopping for homes near the median price point for Frisco / Prosper ($350-450k range)?

If "yes" to both, I'd go ahead and buy now. Prices aren't going down in Frisco anytime soon (provided no national recession) and waiting a year will only make you pay more for the same, whether it's due to slightly higher interest rates or appreciation in values. If you'll be in the home more than 5 years, that's definitely long enough to ride out any dip in values due to national economic issues or values stagnating/ declining if interest rates were to really ramp up (like 8% vs the high 4%'s).

[Wittgenstein's Ghost]

Originally Posted by Katana49

Ask anyone that frequents the Dallas forum whether they are glad they bought when they did or whether they are kicking themselves that they waited.

That's your answer.

I'm not disagreeing with your overall advice regarding when to buy, but pointing to the recent past is a poor indicator of future performance. The fact that people who bought two or three years ago are happy they bought doesn't imply that people who buy today will be happy in a couple years that they did so.

You are right about the long-term, both for stocks and real estate. But the question was about the relative near-term, and the answer to that is much harder to come by.

[Rakin]

Originally Posted by Wittgenstein's Ghost

You are right about the long-term, both for stocks and real estate. But the question was about the relative near-term, and the answer to that is much harder to come by.

Lot of Companies, jobs and people moving into that North DFW area. Can't see the demand slowing anytime soon. Near term is easier to predict than long term today.

[Wittgenstein's Ghost]

Originally Posted by Rakin

Lot of Companies, jobs and people moving into that North DFW area. Can't see the demand slowing anytime soon. Near term is easier to predict than long term today.

You honestly believe it is easier to know that real estate prices will be higher in two years than it is to know they will be higher in fifteen or twenty?

[DitsyD]

Originally Posted by bringitin

Hello,

I am planning to buy new house within a month. But i keep on hearing bad things about housing market status due to different factors such as 1. prices are overvalued 2. increase in mortgage rates will effect housing market 3. affordability pressures blah blah blah

Do you guys think i have to wait or buy now?

I would buy now if possible.

[UnfairPark]

If you have something to sell before buying then yes, get a good price on that and buy another one. Just don't buy in any subdivision that has space left to build another 500 houses or start another phase, if market tanks you'll have issues selling a used home. Dont buy a house that's on the expensive side of your subdivision.

If you have nothing to sell and not in rush, wait for next downturn. Even if prices won't go too low, at least you'll have more choices and better negotiating power. If you do buy, buy in established area, near job hub, look for best schools, near highways, near green belt, relatively bigger lot ... something to give your house an edge.

[Fiber Guy]

Pull the trigger and buy now, where else in the country is there such a incredible selection of excellent new homes, where else is there such an influx of good paying jobs being created, where else are there so many highly rated school districts, where else is there such an excellent infrastructure, the list goes on and on. All this started in the early 70's with Plano, TX. look at what NTX has become, this did not happen by accident! Frisco, TX. showed when you have the "smartest guys in the room" working in your city government and an innovative action plan for growth what can be done, they continue to be the best in the area.

If you want size and amenities Frisco is the place to be probable population at buildout 400-450k, Prosper's population has a projected buildout at 70+k less congestion and a more calm environment with fine amenities (great time to check unsold spec homes in Prosper for significant discounts before the spring selling season starts look now).

Good luck and happy hunting!

Ray