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To those of you looking to buy a house and frustrated:
I feel your pain.
Know that a housing correction in DFW is a guaranteed certainty, as incomes are not increasing commensurate with inflation, housing and otherwise.
Bottom line, there will be a crash because there must be a crash. Either incomes must rise, or housing prices must fall once the inventory issues are ameliorated. The chances of incomes rising to meet a real inflation rate of +15% are unlikely, so housing prices must decline.
If you’re in the market like I am, remember this economic reality and realize that we are in a bubble. Housing prices are the highest they’ve ever been, and that there will be a correction, and likely relatively soon. Don’t overpay.
Jesus Christ and I don't even think he can help us out in this situation.
Mortgage rates were 3.89% when you posted. Your advice was one of the worst pieces of information anyone could have listened to. Today they get to pay even more, have less choices and finance at 6.5%.
At this point God help those who listened to your advice.
Go look at the fed dot plot and see when they plan to bring the rates back down to 2.5% for federal funds rate, not mortgage rates which are typically couple points higher.
You're gonna be waiting till 2025 or later, LMFAO
Wonder if your crash that you're dreaming off will show up then. LOL give up man.
Dallas does not give a **** about any of your crappy stats. Homes in this area will continue to go up and will get picked up buy folks from out of town.
Strong job economy, multiple airports, safe suburbs, good schools and good cost of living for the overall package.
With remote and hybrid jobs on the rise, $47.5k post covid inflation millionaire will continue to pick Texas as their destination for their classic affordable McMansion pad.
You snooze, you lose.
Remote and hybrid jobs are actually on the decline. More employers are expecting people in office, and salaries are in many cases not as high for remote workers. However, there is no reason for people to move to a place for jobs to which they do not have to commute.
Most neighborhoods in the metro area do not offer what you claim all within commuting range, and they don't always correlate to high or low home prices. Despite the obsession over schools, it contributes relatively insignificantly to home prices.
Resale values are not going up in most parts of the metro area. New construction is a different story. The gap is wide enough to make a home a depreciating asset in most cases.
I would dispute your claim that it's a good cost of living for what you get, but I suppose that is a matter of personal opinion. I actually think it's a lot worse a place to live than it was even 2 or 3 years ago.
I also think now is a far worse time to buy a house than ever before.
Remote and hybrid jobs are actually on the decline. More employers are expecting people in office, and salaries are in many cases not as high for remote workers. However, there is no reason for people to move to a place for jobs to which they do not have to commute.
Most neighborhoods in the metro area do not offer what you claim all within commuting range, and they don't always correlate to high or low home prices. Despite the obsession over schools, it contributes relatively insignificantly to home prices.
Resale values are not going up in most parts of the metro area. New construction is a different story. The gap is wide enough to make a home a depreciating asset in most cases.
I would dispute your claim that it's a good cost of living for what you get, but I suppose that is a matter of personal opinion. I actually think it's a lot worse a place to live than it was even 2 or 3 years ago.
I also think now is a far worse time to buy a house than ever before.
You know what they say about opinions.
Now let me show you some facts because you love to live in la la land.
Next time try to educate yourself with some facts before you hit reply...
Most neighborhoods in the metro area do not offer what you claim all within commuting range, and they don't always correlate to high or low home prices. Despite the obsession over schools, it contributes relatively insignificantly to home prices.
I would dispute your claim that it's a good cost of living for what you get, but I suppose that is a matter of personal opinion. I actually think it's a lot worse a place to live than it was even 2 or 3 years ago.
I also think now is a far worse time to buy a house than ever before.
This guy right here just loves to live in la la land with no facts to back up his worthless words.
Your own city McKinney, TX is ranked the #18 Best City to Live in the USA. God forbid you have to live in a city that is ranked #18. Must be a real ****hole type of place for America to pick it as #18 Best City to Live in the USA.
In 2014, McKinney was rated No.1 by Money magazine as “Best Place to Live” in America.
Here is some facts to backup my words and you can now crawl back to your corner after you're done educating yourself.
Allen, Frisco and McKinney named 3 of the safest cities in the country
McKinney, Frisco and Allen rank among the top 100 U.S. cities that are booming economically, according to new data released by SmartAsset, a financial technology company.
McKinney ranks 33rd, Frisco 42nd and Allen 69th. Among North Texas cities, Lewisville broke the top 10 at No. 9 while Denton ranks 19th and Flower Mound 50th.
Dallas – Fort Worth is the fastest growing city in the country, expanding by 131,767 residents in the last ten years. The region now boasts 7.5 million people, making it the fourth largest metropolitan area in the country.
Frisco
Frisco is a suburb 30 miles north of Dallas with a population of 177,020. It’s one of the fastest-growing cities in the nation, with a population increase of 71.1 percent in the last nine years. It was named the best place to live in America by Money magazine in 2018.
Frisco has highly regarded public schools and a high walkability rating. The streets are safe, with a lower crime rate compared to nearby communities.
McKinney
McKinney is less than 30 minutes from downtown Dallas but its atmosphere and character are worlds apart. Rated as one of the USA’s most liveable places, this historic city with family-run businesses is one of the fastest growing cities in Texas.
In 2014, McKinney was rated No.1 by Money magazine as “Best Place to Live” in America.
Jesus Christ and I don't even think he can help us out in this situation.
Mortgage rates were 3.89% when you posted. Your advice was one of the worst pieces of information anyone could have listened to. Today they get to pay even more, have less choices and finance at 6.5%.
At this point God help those who listened to your advice.
Go look at the fed dot plot and see when they plan to bring the rates back down to 2.5% for federal funds rate, not mortgage rates which are typically couple points higher.
You're gonna be waiting till 2025 or later, LMFAO
Wonder if your crash that you're dreaming off will show up then. LOL give up man.
I will never understand your mentality. Rather than empathize with those who are priced out of the housing market, through no fault of their own, you’d rather grandstand and boast of your own good fortune.
To boot, your bombastic hubris is completely unfounded, as your decision to buy a house before prices (and interest rates) went through the roof was a matter of sheer luck and good timing, requiring zero aptitude, or talent, or skill.
I stand by my original post.
When I started this thread one year ago this month, bidding wars, waived inspections, and ridiculous offers over asking price were all but required to purchase into a desirable home or neighborhood. And this insanity didn’t begin to subside until summer.
While some buyers who purchased homes at the peak have no regrets and are happy with their decision, many others are remorseful, as their exorbitant mortgage payments and unforeseen, costly repairs eat away at their budgets.
The fact that housing costs are now even more expensive than last year is not prognostic of price appreciation in perpetuity, as you allude. To the contrary, both nationally and locally, the data is clear that demand for housing has been obliterated due to housing costs soaring beyond what wages can support. Combined with very high inflation, which has Americans drowning in the highest amount of credit card debt ever recorded, it’s clear that housing is in big trouble.
To describe what is happening to the housing market as a “crash” is a misnomer. This is the first innings of a correction, to redress what were simply unsustainable levels of growth made possible by extremely lenient monetary policies and QE.
Should the Fed do it’s job and reset housing prices, a return to pre-COVID rates of affordability will represent a return to normalcy, not a complete melt down, such as what happened during the GFC.
To summarize, you’re nothing special. You may feel you are winning right now, but if inflation continues to hammer the economy, your good fortune may quickly turn into bad luck. Humility goes a long way.
I will never understand your mentality. Rather than empathize with those who are priced out of the housing market, through no fault of their own, you’d rather grandstand and boast of your own good fortune.
To boot, your bombastic hubris is completely unfounded, as your decision to buy a house before prices (and interest rates) went through the roof was a matter of sheer luck and good timing, requiring zero aptitude, or talent, or skill.
I stand by my original post.
When I started this thread one year ago this month, bidding wars, waived inspections, and ridiculous offers over asking price were all but required to purchase into a desirable home or neighborhood. And this insanity didn’t begin to subside until summer.
While some buyers who purchased homes at the peak have no regrets and are happy with their decision, many others are remorseful, as their exorbitant mortgage payments and unforeseen, costly repairs eat away at their budgets.
The fact that housing costs are now even more expensive than last year is not prognostic of price appreciation in perpetuity, as you allude. To the contrary, both nationally and locally, the data is clear that demand for housing has been obliterated due to housing costs soaring beyond what wages can support. Combined with very high inflation, which has Americans drowning in the highest amount of credit card debt ever recorded, it’s clear that housing is in big trouble.
To describe what is happening to the housing market as a “crash” is a misnomer. This is the first innings of a correction, to redress what were simply unsustainable levels of growth made possible by extremely lenient monetary policies and QE. Housing prices returning to pre-COVID rates of affordability is a return no normalcy, not a complete melt down, such as what happened during the GFC.
To summarize, you’re nothing special. You may feel you are winning right now, but if inflation continues to hammer the economy, your good fortune may quickly turn into bad luck. Humility goes a long way.
Stagflation, sideways trading and bunch of chop in DFW markets. Expect to pay more as time goes on for housing in this area.
DFW suburb prices have been down for more than a decade. Folks had plenty of time to buy a place and then refinance too. DFW folks had multiple opportunities to snag housing below $200 per square foot with rates below 4% with no fear of weak job markets or neighborhoods turning bad anytime soon.
This was a no brainer move. No need for paralysis by analysis. Simple rent versus buy and when the difference was your equity payment aka $500 - $1000 per month difference between rents versus buy. You jump in!!!
Now have fun paying $2000 more for rent versus buy.
You snooze, you lose. Stop trying to time everything. Now pay the prices for trying to time the markets.
Stagflation, sideways trading and bunch of chop in DFW markets. Expect to pay more as time goes on for housing in this area.
DFW suburb prices have been down for more than a decade. Folks had plenty of time to buy a place and then refinance too. DFW folks had multiple opportunities to snag housing below $200 per square foot with rates below 4% with no fear of weak job markets or neighborhoods turning bad anytime soon.
This was a no brainer move. No need for paralysis by analysis. Simple rent versus buy and when the difference was your equity payment aka $500 - $1000 per month difference between rents versus buy. You jump in!!!
Now have fun paying $2000 more for rent versus buy.
You snooze, you lose. Stop trying to time everything. Now pay the prices for trying to time the markets.
You seem to be under the impression that most people were READY to buy at that time.
I mean...good for YOU that you had the cash on hand to buy right away. Cudos. Not everyone was as fortunate.
A lot of times it isn't even about the money. There's so much red tape to go through when purchasing a home these days that if EVERY "T" isn't crossed or every "I" isn't dotted, you'll find yourself denied for a mortgage. As mentioned earlier, this is the reason my friend decided to purchase through the highly expensive option of an investor. Wasn't for lack of money...he simply got tired of renting.
A lot of times it isn't even about the money. There's so much red tape to go through when purchasing a home these days that if EVERY "T" isn't crossed or every "I" isn't dotted, you'll find yourself denied for a mortgage. As mentioned earlier, this is the reason my friend decided to purchase through the highly expensive option of an investor. Wasn't for lack of money...he simply got tired of renting.
Put 20% down, cash, not borrowed from other sources, show gross income > 4X the anticipated payments, and you'll get approved.
If you're having trouble getting approved for near zero down payments borrowed from other sources and insufficient income level, you'll have to scale back what you're buying. Unfortunately with the extreme run-up in prices over the last 10 years that will price a lot of people out of areas they could have afforded even a few years ago. That's a price issue, not an interest rate issue.
Those of us who bought houses at 8 1/2% are not overly inclined to be sympathetic with those who are now facing 6 1/2%; those who bought in the early 80s at 15+% even less so.
You seem to be under the impression that most people were READY to buy at that time.
I mean...good for YOU that you had the cash on hand to buy right away. Cudos. Not everyone was as fortunate.
One of the biggest differences between the wealthy and your average American is the level of financial risk each is willing to take.
For those of us who have lived in DFW for a long time, there have been times where the opportunity to buy real estate was pretty clearly defined as a good time to buy. After the Great Recession for example, people had about a full year to buy at or very near the low of the housing market. Not just here, but across the country. Locally, in 2014/2015 anyone with even a rudimentary understanding of the housing market here should have known that it was another good time to buy, as that was the onset of many different corporations moving their HQs to the DFW area. If you paid attention to things and took a risk at those times... you were greatly rewarded. It was also a bit of a hedged risk... real estate has always gone up in value over time in areas where the population continues to grow. This has held true in every state/city I have ever lived in. The DFW area is no exception, and if someone was contemplating a purchase, they should research things like future build out and population growth assumptions. As someone who purchases land from time to time, I research building plans/roads for TxDot, who plans these things out 20-30 years. They know where the growth will occur and when. Cheap rural acreage that is in line to be close to a future Tollway expansion for example can double or triple in value in 5-10 years.
Sometimes in life you have to jump in with both feet. Most people are afraid of this... and a good thing passes them by. In the past 40 years, there's only been one bad time to buy in this area, and that was 2007. Even if you did, by 2013/2014, your home value would have recovered in full or appreciated higher.
While this forum tends to skew towards home buyers purchasing $500k and up homes, there were ample opportunities for home buyers to purchase homes in the $200-300k range from 2010 to 2018/2019 in Frisco, McKinney, Allen, Plano, etc. Those that did, now have $500-600k homes of their own.
Those of us who bought houses at 8 1/2% are not overly inclined to be sympathetic with those who are now facing 6 1/2%; those who bought in the early 80s at 15+% even less so.
Agreed.
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