Inflated home prices (Houston, Dallas, Plano: month to, buying a house, purchases)

[Kenro911]

Originally Posted by NP78

Those types of stories are great click-bait as they hit a lot of buttons, but any reasonable look at the last decade of so would see we have been in a time of almost unparalleled affluence.

I do expect that we are going to see some real issues over the next few years as rapid inflation eats away at purchasing power, but I am not an economist, so what do I know.

Well its like I said, if you ain't making 250K as a household especially in north DFW suburbs - you're behind and doing it wrong, perhaps go to CA get a job, then transfer back. Especially considering that even lower income population somehow managed to take double digit inflation on the chin with no major issues.

[DFWGuy422]

Originally Posted by Kenro911

If people are getting paid 205K+ a head, 1M homes are not big deal if any at all. Thats 400K income in dual working family. We could be out-pacing pricing per sqft of SF and NYC very soon.

A little bit more context was needed from me.

Those are the pay scales for the elite law firms, which hire pretty much solely from Ivy leagues or top X percent at Ut/Vanderbilt/Notre Dame/Georgetown/SMU etc. There just aren’t that many people fitting that description running around. Maybe 500-1,000 new grads in Dallas a year, about half of which won’t want to put up with the stress coming with that big salary. Also, lots of the people making these salaries have $100-200k in student loans, sometimes more

[DFWGuy422]

Originally Posted by Kenro911

Well its like I said, if you ain't making 250K as a household especially in north DFW suburbs - you're behind and doing it wrong, perhaps go to CA get a job, then transfer back. Especially considering that even lower income population somehow managed to take double digit inflation on the chin with no major issues.

I don’t think the lower income population took it all on the chin, though

[Kenro911]

Originally Posted by DFWGuy422

I don’t think the lower income population took it all on the chin, though

I don't see any marches on DC protesting, people seem to be doing just fine. Perhaps many of them got a raise that made up the inflation and then some more.

I saw a lot of trouble in beginning days of Covid where there were countless posts on Facebook etc people were scared as they had no money to even pay for food. I see nothing of the sort now. Perhaps it wasn't big enough of hit or combination of increase of wages. I'm not sure, but I hardly see any desperation out there. Consumer confidence remains high and people are still buying stuff at these higher prices.

I really don't get a feeling that huge amount of people are out there struggling quite frankly that is compared to baseline to pre covid.

I remember even Banks/Credit cards began to cut credit limits and really vet applications for stability. There was is even some index as they were preparing for 2008 type of downturn. Now there is a general feeling of 'you get a loan, and you and you! even you!' Credit card companies are trying to get more revenue in as credit card debt has actually gone down quite dramatically. I think delinquency is lowest in recent recorded history. Like I said, a general feeling of total prosperity.

[TheOverdog]

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

There's no way Frisco's median sold price is $645k, and that's with an anemic number of actual sales (in the 250 a month range) for a fast growing city of nearly 200k in population. The median is on the lower end of $500k based on the number of sales aggregated across the last few months. I'm actually surprised that Frisco still has a few homes for sale in the $200k range every month.



$900 22
$800 15
$700 34
$600 22
$500 41
$400 47
$300 35
$200 3

[Leonard123]

Originally Posted by Kenro911

Well its like I said, if you ain't making 250K as a household especially in north DFW suburbs - you're behind and doing it wrong, perhaps go to CA get a job, then transfer back. Especially considering that even lower income population somehow managed to take double digit inflation on the chin with no major issues.

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.

[albert648]

Originally Posted by Kenro911

Well its like I said, if you ain't making 250K as a household especially in north DFW suburbs - you're behind and doing it wrong, perhaps go to CA get a job, then transfer back. Especially considering that even lower income population somehow managed to take double digit inflation on the chin with no major issues.

Unless you bought in Frisco back when cows were grazing up there.

[jgn2013]

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.

Seems like it's a combo of people carrying equity over from their previous homes AND younger buyers that come from affluent backgrounds THAT ALSO have lucrative careers. A working class kid that grows up and earns a good salary would have a hard time saving up the money they need whereas a kid from a more affluent background probably gets the GSP (Grandma Stimulus Package) with a hefty gift for a down payment. Younger buyers will let you know that they have a nice gig making lots of dough but tend to be radio silent on the help received from family. You can't take fancy vacations, drive nice cars, buy houses in this climate and save that much money without some help somewhere...even with a lucrative career unless you're making mid 6-figs or even low 7-figs.

[Leonard123]

Originally Posted by TheOverdog

There's no way Frisco's median sold price is $645k, and that's with an anemic number of actual sales (in the 250 a month range) for a fast growing city of nearly 200k in population. The median is on the lower end of $500k based on the number of sales aggregated across the last few months. I'm actually surprised that Frisco still has a few homes for sale in the $200k range every month.



$900 22
$800 15
$700 34
$600 22
$500 41
$400 47
$300 35
$200 3

It's unlikely anything there actually sells in the $200s (except maybe a small lot). However, in certain older neighborhoods with smaller houses and lots, particularly older townhomes, list prices do need to start there to attract buyers. That's how it is where I live. Most of the houses in Frisco are McMansions with ridiculous square footage, so it stands to reason they are going to have a higher median. The numbers have more meaning when you look at size ranges and age.

[Kenro911]

Originally Posted by TheOverdog

There's no way Frisco's median sold price is $645k, and that's with an anemic number of actual sales (in the 250 a month range) for a fast growing city of nearly 200k in population. The median is on the lower end of $500k based on the number of sales aggregated across the last few months. I'm actually surprised that Frisco still has a few homes for sale in the $200k range every month.



$900 22
$800 15
$700 34
$600 22
$500 41
$400 47
$300 35
$200 3

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

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