A lot of new homes for sale in Frisco all of sudden?

[Kenro911]

Originally Posted by Sunbather

Yeah I just looked and, yikes. personally I think both houses are pretty ugly for either price.

You'd struggle to find that sqft for 875k in Frisco though in this market as close to tollway as that. That looks much better, there were selling 1600 sqft bungalos for 525k in Park vista or something not long ago.

[Sunbather]

Originally Posted by Kenro911

You'd struggle to find that sqft for 875k in Frisco though in this market as close to tollway as that. That looks much better, there were selling 1600 sqft bungalos for 525k in Park vista or something not long ago.

At that point it's mostly a lifestyle choice - just paying for as much square footage as you can get, design be damned I guess.

Me personally, I wouldn't bat an eye at 525k for 1600ft2 if it was the right house in the right location; that's actually about the same $/ft2 as my home (slightly less than ours these days actually). But I'm also someone who downsized from 3000ft2 and a half acre with my first home 12 years ago (right out of college) to a 1000ft2 0.2 acres here in Dallas as my primary residence.

[dallas_cowboy]

Originally Posted by Kenro911

I think my favorite representation of the situation I'm talking about. 2 listings in Richwoods, Frisco.

Both on Birdhill Lane. 1.7 million that was couple weeks ago during the craze and still on market. And one brand new listing of even larger but slightly less upgraded home for 875k. Literally across the street.

One is asking 100% appreciation the second one is modest 10% against its initial price in 2016. I've seen very similar listings listed across Frisco and Plano. The key here is whether the buyers will bid up that modest 10-15% increase to 30-40% or even above.

If buyers do not bid these places up by a lot, it could be first signs of tapering and that we've reached a point where majority of people who could and wanted to overpay 30-40% over YOY are out.

Once in a while you will see a seller trying to put the house at a ridiculous price and house in Richwoods at $1.7m is an example. They will get showing but no offers. I can bet that $875k will have multiple offers based on market. That doesn’t mean entire market is the same.

If you think market is overpriced and it’s better to stay on sideline for the drop, try to find someone who did this in the past and see if they had a success or not. 2009 market was a unique situation and no one thinks we are going to see that anytime soon. If you are serious to buy the house then continue looking until you find something that fits criteria.

I am not a realtor but live in Frisco so I know how strong sellers market rightnow.

[Wittgenstein's Ghost]

Originally Posted by dallas_cowboy

If you think market is overpriced and it’s better to stay on sideline for the drop, try to find someone who did this in the past and see if they had a success or not.

This is bad reasoning. I don't know if the market is going up, down or sideways from here, but that is bad reasoning.

[Kenro911]

Originally Posted by dallas_cowboy

I am not a realtor but live in Frisco so I know how strong sellers market rightnow.

You contradict yourself, if you believe this is a strong sellers market (which it is, probably strongest ever) you should consider that maybe perhaps its not a great time to buy. My argument is to wait for things to clear up.

It might go up even higher but at least we will have a clearer picture. Mortgage/rent moratoriums are expiring in a month. Lets see if that has any effect. The government is currently hand holding whole real estate market literally. That is about to end. It might not do anything, might do a lot. We don't know, but one can argue its wise to see how we will do once crutches are kicked out.

For past year the whole real estate market has been manipulated from baseline. Extremely low rates, mortgage moratoriums, frozen evictions, whole rental market has had evictions frozen. There is tonnes of already filed and accepted evictions that are simply waiting for expiration of the eviction law.

[dallas_cowboy]

Originally Posted by Kenro911

You contradict yourself, if you believe this is a strong sellers market (which it is, probably strongest ever) you should consider that maybe perhaps its not a great time to buy. My argument is to wait for things to clear up.

It might go up even higher but at least we will have a clearer picture. Mortgage/rent moratoriums are expiring in a month. Lets see if that has any effect. The government is currently hand holding whole real estate market literally. That is about to end. It might not do anything, might do a lot. We don't know, but one can argue its wise to see how we will do once crutches are kicked out.

For past year the whole real estate market has been manipulated from baseline. Extremely low rates, mortgage moratoriums, frozen evictions, whole rental market has had evictions frozen. There is tonnes of already filed and accepted evictions that are simply waiting for expiration of the eviction law.

I am very clear and not on the same side as your thoughts. Seems like you have your mind set that market will go away from seller’s market soon and you will get a better deal. Let’s circle back on this post in a year from now and see where the market is. No one has crystal ball who can predict the market but history is your best data point to suggest possible future market moves and they don’t support any major market correction in real estate in DFW. Good luck!

[Kenro911]

Originally Posted by dallas_cowboy

I am very clear and not on the same side as your thoughts. Seems like you have your mind set that market will go away from seller’s market soon and you will get a better deal. Let’s circle back on this post in a year from now and see where the market is. No one has crystal ball who can predict the market but history is your best data point to suggest possible future market moves and they don’t support any major market correction in real estate in DFW. Good luck!

I have made it clear. I do not know if it will go away from sellers market or not. I simply say that due to government involvement and manipulation in real estate for past year - it is wise to see how the market will do once this intervention ends, very shortly.

That's a whole lot of different than accusing me of saying that 'sellers market will go away'. Don't buy right now because everything will crash.

The reality is that if market crashes, everyone will say they saw it coming a mile away. If it goes even higher, everyone will say well 'duh' California is moving here.

[Tranzplant]

Originally Posted by Kenro911

I have made it clear. I do not know if it will go away from sellers market or not. I simply say that due to government involvement and manipulation in real estate for past year - it is wise to see how the market will do once this intervention ends, very shortly.

That's a whole lot of different than accusing me of saying that 'sellers market will go away'. Don't buy right now because everything will crash.

The reality is that if market crashes, everyone will say they saw it coming a mile away. If it goes even higher, everyone will say well 'duh' California is moving here.

Well said

[jiping]

Originally Posted by Kenro911

I have made it clear. I do not know if it will go away from sellers market or not. I simply say that due to government involvement and manipulation in real estate for past year - it is wise to see how the market will do once this intervention ends, very shortly.

This is not necessarily true. There is an opportunity cost of waiting for price in, just like waiting for the quarterly earning report before buying a stock.

[dallas_cowboy]

Originally Posted by Kenro911

it is wise to see how the market will do once this intervention ends, very shortly.

That's what I don't agree! Buyers should buy when they feel it's appropriate. When you make a statement that it's wise to wait right now is a claim in itself that buyer's are making wrong decisions to buy it right now.