Inflated home prices (Dallas, Plano, McKinney: real estate market, health insurance, salaries)

[Kenro911]

Originally Posted by Leonard123

With that, inflation on day-to-day purchases, bills, and groceries is not nearly as drastic as it is for housing prices and cars. Just a guess, but it's possible those harmed by it are not protesting because they don't have the time, or they are supporting and being supported by the political party in power.

Rent is up 20% nationwide I believe. Cars are up insane amount, I don't even know but average used car is now 27.5K.

Insurance are up too so are utilities and food. For a month to month earners these increases would be absolutely huge.

People are quitting jobs and refusing to work and yet somehow have more buying power than ever before. Like I said, I believe there was a 'bag of money give away' that I clearly have missed on and no one is admitting it.

Even the dealership I go to charges 15% more per hour of mechanic now.

[DFWGuy422]

Originally Posted by leonard123

it's unclear how much is driven by savings rather than or in addition to income. Lots of buyers are paying cash, and some are getting that cash from equity in their previous home. First time buyers are probably not driving the market for the higher priced priced houses. Some of these buyers may not work at all. Ironically, it seems like an increasing share of people have just decided not to work. Where their money comes from i cannot say.

With that, inflation on day-to-day purchases, bills, and groceries is not nearly as drastic as it is for housing prices and cars. Just a guess, but it's possible those harmed by it are not protesting because they don't have the time, or they are supporting and being supported by the political party in power.

+1

[DFWGuy422]

Originally Posted by Kenro911

Rent is up 20% nationwide I believe. Cars are up insane amount, I don't even know but average used car is now 27.5K.

Insurance are up too so are utilities and food. For a month to month earners these increases would be absolutely huge.

People are quitting jobs and refusing to work and yet somehow have more buying power than ever before. Like I said, I believe there was a 'bag of money give away' that I clearly have missed on and no one is admitting it.

Even the dealership I go to charges 15% more per hour of mechanic now.

The people quitting their jobs and living in their parents’ basement aren’t the ones with $250k jobs buying a house in cash. Like someone else said, the working poor are being hit the hardest and might not have the time/energy to protest inflation in DC. Plus, lots of people simply don’t pay attention to politics and/or don’t really understand politics and economics. Maybe this is part of the reason that inflation is called the silent thief.

[Lorne]

Need to factor in the investors that are buying multiple properties. For example, the realtor I used for my own purchase, she owns 4 homes all within a 20 mile radius. She lives in her main home in Allen, but also owns another near University of Dallas, another in McKinney and another in Plano. She also informed me the other the day that she is working on a new purchase in Sugarland in Houston.

Not only do people moving from high-taxed coastal states play a huge role in the prices we are seeing. And this will only continue as DFW becomes more and more popular. Even in commercial real estate / multifamily cap rates are compressed more than ever. Investors / equity companies are paying record breaking price per unit for their multifamily properties, and rents are at an all time high with no end in sight.

[Wittgenstein's Ghost]

Originally Posted by Kenro911

I tried to buy a Rav4 from a local Toyota dealer, market adjustment of 5K and another 4K of total bloat over priced options that are worth pennies. It was sold next day. I hear that people are paying even more premium for Kia Telluride. I wont even mention 4Runners cause those are nuts. Regarding houses, I've seen plenty 800k places going for a million in north DFW suburbs recently. The supply is so low right now that there are fierce bidding wars on whatever there is.

Over the pandemic 12 million homes were sold. There are total of 130 million households in USA. Thats a lot of people buying homes and vast majority of them were in huge bidding wars way above asking.

Per Redfin, median sold house in Frisco was 565K in October 2021. Now it is 645K. Its been 2 months.

Maybe it will slow down, but even at these prices unless I personally missed the money train its still very expensive. My logic tells me that it should slow down, correction should come and yet it feels like everyone is just that much richer and I missed the give away.

I mean even on this forum I hear anecdotal evidence that many people especially in Tech got their salaries doubled last year so if thats the case the prices make total sense and there is zero chance of slowdown.

In my experience, "This is just the new normal, and we're all suddenly richer" is often a great indicator of a bubble. I'm not saying we are actually in a bubble, as I think it's more likely that you're just wrong. But I think most big markets like real estate are more efficient than this.

And I don't think the average tech worker had their salary doubled in the last year. In fact, I think few workers have seen a doubling of salary.

Low interest rates, quantitative easing, high savings coming out of covid and probably other factors are responsible. But that doesn't mean the situation is sustainable.

[Wittgenstein's Ghost]

Originally Posted by Fluffypoms

Absolutely true. I should add that I am referring to the group of people who are moving here from high cost of living cities with high incomes. A 750k home here would cost easily 1.5mil+ in New York, LA, San francisco, Northern VA, etc. So although they have lower property taxes, it works out to be the same because the property is more expensive. Then add the no income tax...you can see how DFW can be very attractive for this group of people.

Originally Posted by Cicnod

Well except of course your house in CA would run you about $30,000 in property taxes, unless you significantly sacrificed. I get so tired of people (not you but the other poster) not understanding actual situations. Using your example it is highly unlikely someone paying $11,000 in property taxes in Plano is going to move to East Palo Alto or Tracy or Torrance and pay $11,000 in property taxes. They would likely have to spend double and sacrifice (or more likely triple and still slightly sacrifice) to live in what they would consider an acceptable area.

Well obviously California metros and NYC are more expensive than Plano, TX. That seems to be so obvious that it's not debatable.

[crazyforger]

Originally Posted by Lorne

Need to factor in the investors that are buying multiple properties. For example, the realtor I used for my own purchase, she owns 4 homes all within a 20 mile radius. She lives in her main home in Allen, but also owns another near University of Dallas, another in McKinney and another in Plano. She also informed me the other the day that she is working on a new purchase in Sugarland in Houston.

Not only do people moving from high-taxed coastal states play a huge role in the prices we are seeing. And this will only continue as DFW becomes more and more popular. Even in commercial real estate / multifamily cap rates are compressed more than ever. Investors / equity companies are paying record breaking price per unit for their multifamily properties, and rents are at an all time high with no end in sight.

Agree...and they aren't sticky buyers.
If there is oversupply, they will start dumping too as they can't hold an empty house and pay taxes for too long.

[Leonard123]

Originally Posted by Kenro911

Well, Redfin says it is and they have been pretty accurate.

https://www.redfin.com/city/30844/TX...housing-market

Yes, that actually looks correct. The latest Community Impact paper shows a monthly feature on the local housing market, sponsored by a local realtor. It is most definitely in the 600s. Two zip codes were at 550K, one at 750K, and one in between.

You could save over 200K on a nearly identical house just by crossing the city line into west McKinney.

[tcualum]

Originally Posted by rabbit33

And if I understand correctly, the name of India in Hindi isn't "India" anyway, but Bharat?

My husband is Indian so we have lots of Indian friends, They call India "India." A lot of them also speak English with each other because they come from different parts of the country with different indigenous languages.

[TheOverdog]

Well except of course your house in CA would run you about $30,000 in property taxes, unless you significantly sacrificed.

That's only for new time buyers, who are taking it on the chin everywhere. My inlaws house is $3k in taxes due to Prop 13 on a home worth around $800k, and yes this indicates they have lived there a long time to take advantage, but the average person in CA has lived in their home 11 years now, while Texas is like 7 years, which makes a pretty significant difference in terms of number of homes trading hands and taxes, even in Texas where appraisal prices typically lag sales prices.