Inflated home prices (Houston, Dallas, Austin: purchase, new construction, good schools)

[DFWUser1]

Originally Posted by Rakin

My son works for Apple and lived in San Francisco. When Covid hit they said he could "work from home". He said great my home is now in TX. He actually joined the Apple Group in Austin also. He sold his $850k home there for $1.6 million and brought all that cash to TXto buy a home.

People (and companies) are just migrating out of the Blue States by the thousands for greener pastures. NY, CA, IL all have lost a lot of population. DFW and TX is just one of he top spots they are moving.

The demand for housing is just exceeding the supply in the area for now.

That's the point, if all people from CA etc. are moving, who is paying $1.6 mil for a $800k house? And houses listed for $1m+ are going $200k, $300k or more above asking in some of those areas. If people and companies are migrating, who is buying there with those exorbitant prices?

Also, hope you know it's not just DFW or TX, every major market is having same situation all across the country. Phoenix, NC, GA, Seattle, Boston, many places in FL, etc. etc. Never seen something like this in the past 25 years even during boom period before recession

[Rakin]

Originally Posted by DFWUser1

That's the point, if all people from CA etc. are moving, who is paying $1.6 mil for a $800k house? And houses listed for $1m+ are going $200k, $300k or more above asking in some of those areas. If people and companies are migrating, who is buying there with those exorbitant prices?

Also, hope you know it's not just DFW or TX, every major market is having same situation all across the country. Phoenix, NC, GA, Seattle, Boston, many places in FL, etc. etc. Never seen something like this in the past 25 years even during boom period before recession

People ar Bailing out of states I mentioned plus other. All I can do is discuss TX maybe Florida and a few other desirables.

Just today....

https://www.foxbusiness.com/economy/...n-lease-report

Facebook parent company Meta signs 'largest ever' lease in downtown Austin

[widespreadfan]

Tennessee is also seeing the same crazy increases in home values that we are here in Texas.

[Fluffypoms]

As someone who moved here for cheaper homes. It’s still cheap. No state income tax more than covers the high property taxes.

[Leonard123]

Originally Posted by DFWUser1

That's the point, if all people from CA etc. are moving, who is paying $1.6 mil for a $800k house? And houses listed for $1m+ are going $200k, $300k or more above asking in some of those areas. If people and companies are migrating, who is buying there with those exorbitant prices?

Also, hope you know it's not just DFW or TX, every major market is having same situation all across the country. Phoenix, NC, GA, Seattle, Boston, many places in FL, etc. etc. Never seen something like this in the past 25 years even during boom period before recession

Yes, this is part of why the data doesn't really support a "mass exodus," among several other things. That doesn't add up.

[Leonard123]

Originally Posted by Fluffypoms

As someone who moved here for cheaper homes. It’s still cheap. No state income tax more than covers the high property taxes.

That may be true for extremely high incomes, but it's not true for most people. Texas is also not the only state without an income tax.

In any event, if it was just in the last year or so for no other reason, it's panic shopping, and that would pretty much prove my best guess.

I honestly wonder if people are just mindlessly, randomly picking places on a list of cheaper areas without any thought at all (maybe a couple of statistical numbers). Given some of the lousy neighborhoods and cities just around here that have gone up in value the most, it would seem so. How else on earth have Fate, Melissa, and Celina come to make among the state's wealthiest ten or so cities?

[Fluffypoms]

Originally Posted by Leonard123

That may be true for extremely high incomes, but it's not true for most people. Texas is also not the only state without an income tax.

In any event, if it was just in the last year or so for no other reason, it's panic shopping, and that would pretty much prove my best guess.

I honestly wonder if people are just mindlessly, randomly picking places on a list of cheaper areas without any thought at all (maybe a couple of statistical numbers). Given some of the lousy neighborhoods and cities just around here that have gone up in value the most, it would seem so. How else on earth have Fate, Melissa, and Celina come to make among the state's wealthiest ten or so cities?

Many people moved last year because of the low interest rates and the option to work remote. Most people are saving more money after moving to Texas. Its more of a logical choice than panic shopping.

Both Melissa and Celina are developing, people that have moved there see it as a potential investment. Lots new jobs around the corner with the large corportations moving here.

Yes there are other states without income tax but for many of us DFW is a no brainer with the ammenies, schools, weather, jobs, etc. Seattle is also nice but more expensive, earthquakes and colder. Florida has hurricanes. Las Vegas is in a desert, weather sucks unless you live in Summerlin which is not cheaper and also the job market sucks for professionals (its mostly entrepreneurs / self employed that are high earners there). DFW have tornados but if I had to choose that or hurricanes/earthquakes i'll stick to the tornados.

[NoClueWho]

Originally Posted by Fluffypoms

As someone who moved here for cheaper homes. It’s still cheap.

Yes, for YOU!!!!!

[Fluffypoms]

Originally Posted by Julio July

Yes, for YOU!!!!!

Yes, it's a cheaper alternative compared to their current situation for loads of other people in the United States. That's why I don't see the price going down long term.

[Leonard123]

Originally Posted by Fluffypoms

Many people moved last year because of the low interest rates and the option to work remote. Most people are saving more money after moving to Texas. Its more of a logical choice than panic shopping.

Both Melissa and Celina are developing, people that have moved there see it as a potential investment. Lots new jobs around the corner with the large corportations moving here.

Yes there are other states without income tax but for many of us DFW is a no brainer with the ammenies, schools, weather, jobs, etc. Seattle is also nice but more expensive, earthquakes and colder. Florida has hurricanes. Las Vegas is in a desert, weather sucks unless you live in Summerlin which is not cheaper and also the job market sucks for professionals (its mostly entrepreneurs / self employed that are high earners there). DFW have tornados but if I had to choose that or hurricanes/earthquakes i'll stick to the tornados.

First off, there was nothing forcing those people to stay in those expensive areas in the first place. They could have easily found jobs with remote work or in north Texas or less expensive markets long before the pandemic.

Whether most people "saved money" is beside the point. Texas property taxes are higher than combined property and income taxes for many other states including California for most people's income levels and home values. The total tax burden likely falls somewhere in the middle for the nation as a whole.

There was an article last year that most people moving from the Bay Area in 2020 moved within California, and most of the rest went to Seattle. Texas ranked third, but Houston and Austin were their choices. For as long as I can remember, the main reason people did not move to Texas was the weather. I don't believe people moving to Texas move for the weather. I think it's too cold and cloudy myself, even if most of the rest of the country is worse.

It's panic shopping because it was done with such haste and urgency in response to the virus under the assumption they would now be working from home. The metro area is too large to know where to make such a commitment as a home purchase without any familiarity.

It makes no sense for people to move near jobs and corporations if their motive for moving was that they were able to work from home. Those with high enough incomes will never need to be those centers or any large metro area. That explanation is one I hear constantly, and it only begs the question.

Melissa and Celina and Fate are much farther away from and certainly equidistant to jobs, corporations, and many other amenities than equally or less expensive and more attractive housing options. They have none of the benefits of country living either and for the most part are quite ugly. The only thing being developed out there is more houses, and the land area, geography, economy, and infrastructure will limit there from being much more.