Is high housing price and inflation a big deterrent for relocation now? (Dallas: renters, lenders)

[Leonard123]

Originally Posted by mikestrong

I sell new homes, and in my community im seeing 75% locals that work in Dallas/Irving buying. I know what Im seeing. We have a 2000 person wait list. They have been renting for years. Relos are up but thats not what is the issue in my community. Just FYI.

Where are they getting that kind of money? Unless they have some huge magical pile of hundreds of thousands in cash, for a new house they would need at least two people both making well over $100K+ a month. That seems further unlikely by the fact they had so little common sense they would rent for years and somehow think now is the time to buy. They also have some kind of screw loose participating in these ridiculous schemes home builders are instituting. Given the cost and value of new home construction these days and the historically massive and still growing gap between new and resale, I just can't imagine where their money is coming from and why they would wait until now.

Something doesn't add up.

[Lz_2022]

Originally Posted by Leonard123

Where are they getting that kind of money? Unless they have some huge magical pile of hundreds of thousands in cash, for a new house they would need at least two people both making well over $100K+ a month. That seems further unlikely by the fact they had so little common sense they would rent for years and somehow think now is the time to buy. They also have some kind of screw loose participating in these ridiculous schemes home builders are instituting. Given the cost and value of new home construction these days and the historically massive and still growing gap between new and resale, I just can't imagine where their money is coming from and why they would wait until now.

Something doesn't add up.

Because you’re using 1989 math in a 2022 world. I’d be really curious as to what the “schemes builders are instituting” actually means, but that’s really beside the point.

To the OP’s post - yes, it’s slowing relocating, which is why there’s no inventory. I’d love to cash out my equity on a home that’s maybe 60% utilized - but where would I move?

[75214Dad]

Originally Posted by Leonard123

Where are they getting that kind of money? Unless they have some huge magical pile of hundreds of thousands in cash, for a new house they would need at least two people both making well over $100K+ a month. That seems further unlikely by the fact they had so little common sense they would rent for years and somehow think now is the time to buy. They also have some kind of screw loose participating in these ridiculous schemes home builders are instituting. Given the cost and value of new home construction these days and the historically massive and still growing gap between new and resale, I just can't imagine where their money is coming from and why they would wait until now.

Something doesn't add up.

Most of the communities along 380 are selling below $1M- the median is around $600K. That’s 1.5 FTEs. A $3000 to $3500 a month mortgage. They probably have $500 a month in student loans and the same in a car note. A bit tight, but still within standard fundamentals. I think the main appeal is they can get the house and not have to write 20 letters about why they are nice people and still never get a house.

I know a lot of people want everything to go back to 2019. It’s not going to. DFW is an attractive place to be if your in person work is 5-15 face to face meetings a year, most probably in another city anyway. And that’s going to be reality for enough people that it will drive the market here.

[mikestrong]

Originally Posted by Leonard123

Where are they getting that kind of money? Unless they have some huge magical pile of hundreds of thousands in cash, for a new house they would need at least two people both making well over $100K+ a month. That seems further unlikely by the fact they had so little common sense they would rent for years and somehow think now is the time to buy. They also have some kind of screw loose participating in these ridiculous schemes home builders are instituting. Given the cost and value of new home construction these days and the historically massive and still growing gap between new and resale, I just can't imagine where their money is coming from and why they would wait until now.

Something doesn't add up.

Okay. Im a big liar. Believe what you want. I have only been selling new homes for 19 years. lol The price range I sell is mid 400's to mid 600s. Also, all of them make 150k and up. Thats all you need to make to buy a 550k home if you have little debt.

[ScoPro]

Originally Posted by mikestrong

Okay. Im a big liar. Believe what you want. I have only been selling new homes for 19 years. lol The price range I sell is mid 400's to mid 600s. Also, all of them make 150k and up. Thats all you need to make to buy a 550k home if you have little debt.

Starter homes, right?

[DFWGuy422]

Originally Posted by Leonard123

Where are they getting that kind of money? Unless they have some huge magical pile of hundreds of thousands in cash, for a new house they would need at least two people both making well over $100K+ a month. That seems further unlikely by the fact they had so little common sense they would rent for years and somehow think now is the time to buy. They also have some kind of screw loose participating in these ridiculous schemes home builders are instituting. Given the cost and value of new home construction these days and the historically massive and still growing gap between new and resale, I just can't imagine where their money is coming from and why they would wait until now.

Something doesn't add up.

Not sure where you’re getting the $100k a month figure from. $2.4 million annually would put people in a league of their own for purchasing houses where virtually nothing would be off the table.

Renting doesn’t indicate a lack of common sense — makes much more sense to rent if you’re not planning on staying in an area long-term and these people might have just changed their minds.

What schemes are these builders participating in? I don’t love the new construction homes in Frisco/Prosper or wherever else, but I wouldn’t really call it a “scheme.”

[Lz_2022]

Originally Posted by ScoPro

Starter homes, right?

Yeah. And starter wages are higher. 1989 math - 2022 calendar.

[mikestrong]

Originally Posted by ScoPro

Starter homes, right?

LOL. Surprising how many are first time buyers.

[camom_ptn]

Originally Posted by mikestrong

Okay. Im a big liar. Believe what you want. I have only been selling new homes for 19 years. lol The price range I sell is mid 400's to mid 600s. Also, all of them make 150k and up. Thats all you need to make to buy a 550k home if you have little debt.

Where do we have new homes in this range?

[mikestrong]

Originally Posted by camom_ptn

Where do we have new homes in this range?

Im not going say where I am, but up north of Dallas a ways.