Is high housing price and inflation a big deterrent for relocation now? (Dallas: new home, buyers)

[camom_ptn]

Originally Posted by mikestrong

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

I am not asking where you are, but would like to know where the inventory of new homes in this range

[Lz_2022]

Originally Posted by camom_ptn

I am not asking where you are, but would like to know where the inventory of new homes in this range

Inventory? He literally stated that he had a waiting list 2,000 deep. There is no inventory. You have to go in, bid on your lot, and wait for your house to be built.

[rabbit33]

Well, given the California plates everywhere, the bidding wars, the never-ending price increases, I'd say it's not yet a deterrent.

Can Texans somehow volunteer to help get California under control, so they'll stay there?

[mikestrong]

Originally Posted by camom_ptn

I am not asking where you are, but would like to know where the inventory of new homes in this range

No inventory. Its lots to build on which then takes 9 to 12 months, but there are caps on number of lots and big wait lists.

[Leonard123]

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.

I never said that. I believe what's happening. I just think something is off somewhere. It goes beyond just "a good place to live." People don't en masse just all decide to do the same thing at the same time unless it is collective lunacy.

Most individuals are not making 150K and up. That requires two full-time incomes which I assume is what you refer to?

In any event, that is quickly becoming the very low end for new construction, and it's going up so fast it should make their heads spin. These "base prices" though are irrelevant when new construction only includes inventory and when builders are taking bids or requiring extra premiums.

The schemes are numerous. The worst of all being the bidding process, whether for houses or lots. Besides that, it is limited to inventory only, management of massive wait lists with timed decision-making windows, lotteries, "lot premiums" for all standard lots, mandatory upgrade purchases, false advertising (showing or changing base prices when nothing is available at base price, advertising at all when nothing is available, etc.), cancellation of contracts, requirements for "preferred" lenders for wait lists only, refusal to sell to people who currently own homes, and very rushed processes processing buyers through like cattle. That people subject themselves to this is insane. People who would bid on new construction are insane. Builders doing that are terrible. It's total chaos. Adding to the chaos, the locations of new construction are awful. People are paying $700K to live right next to a landfill, off a noisy highway, far out from anything.

I'm not sure where my "math" is off for those claiming I don't make any sense. I never gave any specific calculations in the first place. Math is the same now as it always was. Prices and expenses may have changed, but math hasn't. I don't know exactly where I was off? The prices on most new construction are insanely high and growing by the day. They have $20K+ price increases every 2-4 weeks, and none of them even have anything to sell.

[mikestrong]

Originally Posted by Leonard123

I never said that. I believe what's happening. I just think something is off somewhere. It goes beyond just "a good place to live." People don't en masse just all decide to do the same thing at the same time unless it is collective lunacy.

Most individuals are not making 150K and up. That requires two full-time incomes which I assume is what you refer to?

In any event, that is quickly becoming the very low end for new construction, and it's going up so fast it should make their heads spin. These "base prices" though are irrelevant when new construction only includes inventory and when builders are taking bids or requiring extra premiums.

The schemes are numerous. The worst of all being the bidding process, whether for houses or lots. Besides that, it is limited to inventory only, management of massive wait lists with timed decision-making windows, lotteries, "lot premiums" for all standard lots, mandatory upgrade purchases, false advertising (showing or changing base prices when nothing is available at base price, advertising at all when nothing is available, etc.), cancellation of contracts, requirements for "preferred" lenders for wait lists only, refusal to sell to people who currently own homes, and very rushed processes processing buyers through like cattle. That people subject themselves to this is insane. People who would bid on new construction are insane. Builders doing that are terrible. It's total chaos. Adding to the chaos, the locations of new construction are awful. People are paying $700K to live right next to a landfill, off a noisy highway, far out from anything.

I'm not sure where my "math" is off for those claiming I don't make any sense. I never gave any specific calculations in the first place. Math is the same now as it always was. Prices and expenses may have changed, but math hasn't. I don't know exactly where I was off? The prices on most new construction are insanely high and growing by the day. They have $20K+ price increases every 2-4 weeks, and none of them even have anything to sell.

Most people coming to buy in my community know the price point, so yes, the people I see average about that for a couple or individual in income. The people doing it in mass lived where they did in Dallas/Irving because they wanted to be close to work. They have high paying jobs. They are all doing it in mass since they now work from home. These were renters who now can go farther out and not have to pay for private school that the did before. They werent homeowners(the ones I am talking about). Im sure this isnt in all communities but this is what I am seeing.

[Lz_2022]

Originally Posted by Leonard123

I never said that. I believe what's happening. I just think something is off somewhere. It goes beyond just "a good place to live." People don't en masse just all decide to do the same thing at the same time unless it is collective lunacy.

Most individuals are not making 150K and up. That requires two full-time incomes which I assume is what you refer to?

Many moving to that area are indeed making $150K plus. Welcome to 2022. Dual income families are also a thing now too.

In any event, that is quickly becoming the very low end for new construction, and it's going up so fast it should make their heads spin. These "base prices" though are irrelevant when new construction only includes inventory and when builders are taking bids or requiring extra premiums.

OK, and?

The schemes are numerous. The worst of all being the bidding process, whether for houses or lots. Besides that, it is limited to inventory only, management of massive wait lists with timed decision-making windows, lotteries, "lot premiums" for all standard lots, mandatory upgrade purchases, false advertising (showing or changing base prices when nothing is available at base price, advertising at all when nothing is available, etc.), cancellation of contracts, requirements for "preferred" lenders for wait lists only, refusal to sell to people who currently own homes, and very rushed processes processing buyers through like cattle. That people subject themselves to this is insane. People who would bid on new construction are insane. Builders doing that are terrible. It's total chaos. Adding to the chaos, the locations of new construction are awful. People are paying $700K to live right next to a landfill, off a noisy highway, far out from anything.

It's called Supply and Demand. Business 101. If you're dead set on new construction, you pay the piper. Otherwise, you search for existing homes and pay that piper instead.

I'm not sure where my "math" is off for those claiming I don't make any sense. I never gave any specific calculations in the first place.

Well, you actually did, and stated $100K/mo. What you're not realizing is that times have changed.

Math is the same now as it always was. Prices and expenses may have changed, but math hasn't. I don't know exactly where I was off? The prices on most new construction are insanely high and growing by the day. They have $20K+ price increases every 2-4 weeks, and none of them even have anything to sell.

OK, and?

It's not pricing you out of anything, so where's the consternation coming from - just something to rail against? all it does it help your property values and equity eventually. Maybe you don't think you see it right now, but it's there. If you don't have to drive up that way, what does it matter if people live clear the hell out in Celina or Prosper or Oklahoma (they're practically closer anyway).

[TurtleCreek80]

Originally Posted by Leonard123

I never said that. I believe what's happening. I just think something is off somewhere. It goes beyond just "a good place to live." People don't en masse just all decide to do the same thing at the same time unless it is collective lunacy.

Most individuals are not making 150K and up. That requires two full-time incomes which I assume is what you refer to?
.

There are areas where many if not close to most households are making $150k+. The median HHI in Prosper is $147k. The median HHI in Frisco is $127k. The median HHI in Celina is $124k. In Collin County, the mean HHI of the top 20% of homes is $260k - that’s about 80,000 households. I’m sure the stats are similar at the top of Denton County, too.

There really ARE plenty of people who can afford to buy a $500k+ new home without it being “collective lunacy.”

[75214Dad]

Originally Posted by TurtleCreek80

There are areas where many if not close to most households are making $150k+. The median HHI in Prosper is $147k. The median HHI in Frisco is $127k. The median HHI in Celina is $124k. In Collin County, the mean HHI of the top 20% of homes is $260k - that’s about 80,000 households. I’m sure the stats are similar at the top of Denton County, too.

There really ARE plenty of people who can afford to buy a $500k+ new home without it being “collective lunacy.”

All of this. And in 2019 20% of households in DFW made $156,000+ (The NYT has a nifty “are you rich?” Quiz using ACS data).

45% of households in San Jose made at least $150K. 40% of households in SF and DC, 35% in Boston, 30% in NYC, Seattle, and San Diego. LOTS of people can- and are- buying these houses. It’s not a bubble.

[LocalPlanner]

Originally Posted by TurtleCreek80

There are areas where many if not close to most households are making $150k+. The median HHI in Prosper is $147k. The median HHI in Frisco is $127k. The median HHI in Celina is $124k. In Collin County, the mean HHI of the top 20% of homes is $260k - that’s about 80,000 households. I’m sure the stats are similar at the top of Denton County, too.

There really ARE plenty of people who can afford to buy a $500k+ new home without it being “collective lunacy.”

Exactly. While yes there are emigrating Californians who are affording these prices because of the equity from their previous home, there's also lots of high-paying jobs being added in DFW. Especially in Collin County. A white-collar married or partnered couple, both working, can hit $250K HH income easily.