North Dallas Bubble?

12 Replies

How long will the boom in North Dallas suburbs (Plano, Frisco, McKinney) last? I don't think pri es will plummet however they will flatten out and drop off some. This appreciation can go on for that much longer.

6 month - a year? Or am I a pessimistic observer of the market.

I don't see north Texas as a bubble. People aren't buying up properties as a speculative investment. There are just not enough places to live for all the people moving out here. The demand is growing and the supply can't keep up. Any nationwide downturn will still affect north Texas, but it's effects will be muted somewhat. I wish prices would drop, but I don't see it happening any time soon. 

North Dallas suburbs are doing well because of the employers moving into the area.  Toyota is moving 10,000 jobs into this market in Plano.  Others are coming too.

Mark

If it's a bubble I think it's only in the beginning stages. There are 3 major companies with thousands of jobs coming to the area and these jobs will not start until end of 2016 through 2018. Job data and people moving to the area is projected to continue to increase through 2025. Having said this, it's a HIGHLY competitive market. I have put in many offers with 40% down and above asking price and have lost out on all but one to another investor paying all cash with quicker close. This is escalating prices. Seems like California 20-30 years ago. Ironically, it's the Californians and Northeasters who are moving here that caused the bubbles on the coasts. And they still see housing prices here as very cheap. 

When I first visited the area 5 years ago nice homes could be had at 150K. Nowadays similar homes are priced at 300K. While the demand is real I can't believe this rate can be sustained. Bubble or not when people can't afford to buy homes prices will have to come down.  

It scares me that Californians are moving to Texas and will be allowed to vote.  I'm scared that they'll move here and pollute Texas like they did California.  Hopefully all they need is a good influence, and we oblige.

@Chris Reed ,well many of us have family and friends that are Californians so many are good folks. The good news is the ones who are coming here are the ones with good paying jobs not the ones living off the California entitlement programs.

Originally posted by @Chris Reed :

It scares me that Californians are moving to Texas and will be allowed to vote.  I'm scared that they'll move here and pollute Texas like they did California.  Hopefully all they need is a good influence, and we oblige.

 Ouch

What about the environmentalists, socialists, or single issue activists?  If we are stealing just the conservatives from California, Great!  I just don't want them coming here intending to make it like what they left.

Back on topic though, We have more than half a dozen large corporations moving offices into the Plano/Frisco/McKinney area, and some manufacturing is coming in south of Dallas, so the Dallas area is going to get allot bigger, very fast.

Additionally, there's a large effort in Dallas to rehab entire neighborhoods at a time so Dallas itself can continue to grow.  The downside of that is that the inhabitants of south Dallas are going to be going somewhere.  I'm guessing they'll continue to merge into Irving and the mid cities.  Just a guess though.

Originally posted by @Chris Reed :

What about the environmentalists, socialists, or single issue activists?  If we are stealing just the conservatives from California, Great!  I just don't want them coming here intending to make it like what they left.

I just want the employed one.

Mark

There has been a temporary bump in prices because of weather causing a shortage of buildable lots over the last year in the northern burbs.  If I was planning on listing anything in next year or so I would do it immediately.

For example, in Princeton alone the builders would have built at least another 500 homes last year if it had not been for weather.  Considering the number of people moving to Collin County it does not take much to stretch the already tight market.

I do not think we are in a serious bubble in the Metroplex.

Originally posted by @Chris Reed :

It scares me that Californians are moving to Texas and will be allowed to vote.  I'm scared that they'll move here and pollute Texas like they did California.  Hopefully all they need is a good influence, and we oblige.

 Texas will change them, they won't change Texas.  ;)