Real Estate Market

[ThisLadyHunts]

Originally Posted by Spiderpig1776

I’m very spoiled I grew up in a 7k square ft house and the houses I’ve bought since are all 2500 or so. I get we don’t have to have the space but I definitely want elbow room. I don’t have to keep up with any I just grew up with nice stuff so I’ll continue to work extra hard so I can continue to have those things.

I’m with you.

Could I SURVIVE in just over 300 sq/ft? Easily. Would I want to? No.

I, too, have worked hard to be able to afford the things I have. I’m also blessed to have many heirlooms and legacy pieces—from both sides of my family—over which I am only the steward, tasked with preserving them for future generations. These things I could never sell or let go.

I also like to host gatherings of family and friends and, one day, I hope to have grandchildren…at least ten…and I’d like to have the space for all of this.

Spoiled? No. Just blessed with an embarrassment of riches (to me).


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[CarbonFlinger]

How are prices on raw land in between Salado and Holland, TX?
We have been wanting to get out of the concrete jungle aka Round Rock. The kids are finally in college (A&M) and we just need to live near a quick route to an airport for work purposes. Leakey, TX is my option, but mama needs to be a tad bit closer to her aging mother. Looking for acreage and a nice barn dominium style setup.

[Snowflake Killa]

Been through this a few times nothing new. I think they call this a correction

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[Landrover]

Originally Posted by Snowflake Killa

Been through this a few times nothing new. I think they call this a correction

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.............great summary!

[Kong]

Originally Posted by miket

The 23ac next to me was split and sold a year or so ago, they got busy clearing it immediately, then it all stopped. Havent seen them all summer. I sent a text and told them if they decided to sell, to please contact me first. I doubt they will, but something definitely put everything on hold.

I bet they ran out of funds or decided it wasn’t worth the investment. I’m not a land fortune teller but I’d be willing to bet a lot of property purchased by real estate companies and individuals looking to cash in on the craze will be back on the market soon.

[Spiderpig1776]

Originally Posted by Kong

I bet they ran out of funds or decided it wasn’t worth the investment. I’m not a land fortune teller but I’d be willing to bet a lot of property purchased by real estate companies and individuals looking to cash in on the craze will be back on the market soon.

I bet your right and I bet you could load up with a nice discount

[Snowflake Killa]

Originally Posted by Landrover

.............great summary!

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[CTR0022]

Remember, even during the 2008 crash, home prices didn't just fall over night. On average the market was only down 1-1.5% per month. Not much when you look at it month to month, but give it 12-18 months and you have considerable reductions. I think this time next year will be very telling.

I could be wrong. But I don't see any considerable reduction in rates anytime soon.

Also, the fed has said numerous times they want to see a 20% correction in the real estate market.

[Cookiemonster1]

2008 was a far different issue than what we are currently seeing. People were getting loans on houses that should have never been given out.

[CTR0022]

Originally Posted by Cookiemonster1

2008 was a far different issue than what we are currently seeing. People were getting loans on houses that should have never been given out.

No but this time it took people paying $100k over asking price if not more on pretty much every single property that was purchased in the past few years. Alot of people made some stupid decisions on property and significantly over paid. That will catch up to them if the economy continues to falter.

[trophy8]

Originally Posted by CTR0022

No but this time it took people paying $100k over asking price if not more on pretty much every single property that was purchased in the past few years. Alot of people made some stupid decisions on property and significantly over paid. That will catch up to them if the economy continues to falter.

Yeah but lots of those had to be paid with large down payments to cover the extra over appraisal. Lots of homes were paid for with cash. And big down payments. Different ballgame than 2008 altogether.

[friscopaint]

Originally Posted by Flyway12

Still seeing homes in our area sell decent but prices have dropped. Im in Grayson Co and with TI bringing their corporate HQ to Sherman/Denison, the population in Sherman is set to double in 5 years. Demand will still be here though prices may not be the 2020/2021 variety anymore. I went full blown Dave Ramsey for 5 years with the wife and paid off my student debt from vet school. We were living in a 1400 sq ft 112 year old victorian that I had no desire to work on anymore. Told my wife we needed to start focusing on investment. Told her we could have land or the stock market. She chose land. We bought 15 acres and a 50 year old 2800 sq ft ranch style home with a view in southern Grayson. At that time acreage around us was selling for $28K/acre. Even in the current decreasing market I'm seeing it move for $65K-$$85K per acre. So we're still up for our area, problem our realtor is having with our place is that there are no comps. Tracks of land with a home like ours just don't exist. Only question that remains is where the heck do you go lol. I bought a vacant lot in 2018 and I'm currently working to move it. Probably still double our money but it won't be the triple we were hoping for. I've got 4 acres commercial well located on a major thoroughfare (was going to build a vet clinic but not at these construction prices I won't) and I've now put it on the market. Probably won't see a great return there but we'll see something.

Markets definitely correcting but I'm starting to see information that supports a mortgage rate decrease in January so things may start to fire up again. I wouldn't mind seeing prices drop a little more, I'd like to pick up a few rentals.

Like anything else, just gotta ride the waves. I doubt we ever see anything like 2020/2021 again.

That and tollway coming hard and fast. I'm in Collinsville and haven't seen any slowing down. We are gonna list in spring and go to Florida if we sell

[unclefish]

Originally Posted by CTR0022

Remember, even during the 2008 crash, home prices didn't just fall over night. On average the market was only down 1-1.5% per month. Not much when you look at it month to month, but give it 12-18 months and you have considerable reductions. I think this time next year will be very telling.

I could be wrong. But I don't see any considerable reduction in rates anytime soon.

Also, the fed has said numerous times they want to see a 20% correction in the real estate market.

Yep....we still have a recession coming. Layoffs are coming on strong. Also the pending rail strike could set things off in a downward spiral even more. Maybe next summer we might see rates coming down....maybe.

[91cavgt]

Originally Posted by unclefish

Yep....we still have a recession coming. Layoffs are coming on strong. Also the pending rail strike could set things off in a downward spiral even more. Maybe next summer we might see rates coming down....maybe.

We are already in a recession, and a very strong one at that. 2 negative quarters of GDP growth happened in the first half of this year. However, those in the current administration didn’t like that so they changed the definition of a recession. Technically speaking, we are VERY close to being in a depression, but I expect that definition to be changed as well, once they finally admit to the current recession.

[tpack]

Here`s an example of a very nice new construction home that has been reduced to 190 sq. ft. from 232 sq. ft.( $42 per sq. ft. less) and still hasn`t sold in an area with lots of growth and inventory. I`ve seen several new construction homes reduced 100 grand and still not selling. Going to get worse before it gets better. Several on here were saying a while back to go ahead and build now with high interest rates and refinance later when they come back down. It may be hard to refinance later if your house comps for 100-150 thousand less after a correction. I also think that builders are going to be forced to lower the prices of their inventory which will lower the comps and banks won`t loan as much money on said house. Going to be interesting how it turns out.

https://www.zillow.com/homedetails/4...6288962_zpid/?

[Bill M]

Originally Posted by tpack

Here`s an example of a very nice new construction home that has been reduced to 190 sq. ft. from 232 sq. ft.( $42 per sq. ft. less) and still hasn`t sold in an area with lots of growth and inventory. I`ve seen several new construction homes reduced 100 grand and still not selling. Going to get worse before it gets better. Several on here were saying a while back to go ahead and build now with high interest rates and refinance later when they come back down. It may be hard to refinance later if your house comps for 100-150 thousand less after a correction. I also think that builders are going to be forced to lower the prices of their inventory which will lower the comps and banks won`t loan as much money on said house. Going to be interesting how it turns out.

https://www.zillow.com/homedetails/4...6288962_zpid/?

My wife is a realtor in BCS and surrounding area. She is checking listings everyday. Builder homes were at approximately 50% of total inventory there which is unheard of. Not many resales but no one on the new side put the brakes on so they are forced to lower prices. Banks cut many builders off even though profitable back in 2008-2009 but didn't do that this time. It will be interesting. We are building now but not having to finance thank goodness.

[WItoTX]

Our bank called to confirm the price we got on our house this past month. Said what we are paying vs what they considered the house to be worth so significantly different that no appraisal was needed. They also said congrats, they hadn't seen prices that good in a long time.

There are deals to be had. Just go find them, and don't be afraid to throw out what a "reasonable" offer (i.e. 2019 timeframe), and don't get attached to a property.

[91cavgt]

I just called a realtor company to inquire about a new property in the area I’m looking in, but this new property is not listed online anywhere. The property has a very small house/cabin that appears as though hasn’t been inhabited in quit a while(lots of overgrowth against the house, outside of the house appears to be in disrepair, driveway is completely overgrown). It is 6 acres, and there is one of those super tall telecommunications towers on the property. They are asking $400k for the place!! That’s ridiculous!! I’ll keep looking…….

[tpack]

ZILLOW: BREAKING, New Home Sales SURGE! - YouTube

[kyle1974]

It’s crashing. Like a lot of people said was going to happen.

Except realtors…. You know, “real estate pros” because they took a 2 month course.

[MikeyG]

I'm ready for the subs to get knocked off of their high horse and start competing for work again. Hopefully this will help improve the shotty quality that's been the norm, too.

[Rubberdown]

I am ready to have some people want to work again. I called three different people about replacing exterior doors out there in the ranch house and they wouldn’t even come give me an estimate. Buncha horse manure.

[W E H]

Originally Posted by MikeyG

I'm ready for the subs to get knocked off of their high horse and start competing for work again. Hopefully this will help improve the shotty quality that's been the norm, too.

i'm with you!

i'm still struggling with the $200 a day cost for unskilled labor. i just can't make myself pay that. i'm just saying give me a bid.

[Txhunter3000]

I'm afraid it's here to stay. Maybe if interest rates stay 5-7% then it might go down. From what i see everyone still has a lot of money saved up and spending hasn't slowed much. If you're a reputable trade, I see you having a lot of work to choose from at your price. There's no one wanting to learn a skill.

[dgilbert]

Hope those realtors put some in savings, kinda like the oilfield market.

[deep n the heat]

I had a granite sub call me asking if I had any work for him. I'm betting there will be a lot more of that. I am also looking at house prices getting dropped weekly that have been on the market 120 days or more.

[Dale Moser]

Builders had to switch to building specs last year, and some quit taking bill jobs altogether, for a few reasons.

1. Government induced material/labor increases were rising so rapidly that they couldn’t predict the actual cost to build the home beyond 8 months plus or minus, (A lot minus in many cases) so they couldn’t sign a contract until basically Sheetrock was done.

2. Government/demand induced material shortages were so bad that build times stretched out to un-predictable time frames.

3. For many people, the government induced “stimulus” money, was the most money many lower income folks had ever had in their account, coupled with low interest rates, prompted many of them to buy a house (that they couldn’t really afford).

Then interest rates spiked, causing buyers, and investors to stand on the brakes.

Now we’re all in limbo, and the market is heavy with homes with inflated build costs, and even more inflated purchase/finance costs….and everyone is just standing around looking at each other waiting for one cost or the other to go down.

There are much smarter individuals on here who can break it down more specifically than I can, but that’s the nuts and bolts of it.

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[cantexduck]

Originally Posted by CarbonFlinger

How are prices on raw land in between Salado and Holland, TX?
We have been wanting to get out of the concrete jungle aka Round Rock. The kids are finally in college (A&M) and we just need to live near a quick route to an airport for work purposes. Leakey, TX is my option, but mama needs to be a tad bit closer to her aging mother. Looking for acreage and a nice barn dominium style setup.

Triple what they should be …….. good luck finding anything under 100 acres for less then 35k an acre.

[Slaunch]

Home prices in Washington County have come down a bit, but it seems like the raw land price per acre has gone up. I am not sure land will correct in the short term and it might not ever.

[ThisLadyHunts]

Originally Posted by Dale Moser

Builders had to switch to building specs last year, and some quit taking bill jobs altogether, for a few reasons.

1. Government induced material/labor increases were rising so rapidly that they couldn’t predict the actual cost to build the home beyond 8 months plus or minus, (A lot minus in many cases) so they couldn’t sign a contract until basically Sheetrock was done.

2. Government/demand induced material shortages were so bad that build times stretched out to un-predictable time frames.

3. For many people, the government induced “stimulus” money, was the most money many lower income folks had ever had in their account, coupled with low interest rates, prompted many of them to buy a house (that they couldn’t really afford).

Then interest rates spiked, causing buyers, and investors to stand on the brakes.

Now we’re all in limbo, and the market is heavy with homes with inflated build costs, and even more inflated purchase/finance costs….and everyone is just standing around looking at each other waiting for one cost or the other to go down.

There are much smarter individuals on here who can break it down more specifically than I can, but that’s the nuts and bolts of it.

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This is probably the most comprehensive yet succinct explanation I’ve heard yet. Thanks for breaking it down for us.

[MadHatter]

Originally Posted by Rubberdown

I am ready to have some people want to work again. I called three different people about replacing exterior doors out there in the ranch house and they wouldn’t even come give me an estimate. Buncha horse manure.

Not enough money in that job to care, and you would laugh at the bid if it was enough to make them care.
You would say no, and they know this already, so it's easier to just ignore it, or say no, than it is to give a explanation.
Track down a local handyman.

[ken800]

We are going to be starting a new build here fairly soon. The house was "reasonably-priced" compared to other new home builders in the area and they offered a generous upgrades budget. This coupled with their reasonable upgrade costs, makes it a fairly solid deal. That said, I'm under no illusion that the whole thing can go south due to a rapidly dropping market... I have two ripcords I can pull if the whole thing tanks:

First, the earnest is only $3K so that's what I eat if I walk and I'd most certainly do that before I take a big hit. I've not had to put down any further deposits for upgrades.

Second, and this one is REALLY important: There is no forced waiver of appraisal. I will get an appraisal by someone I can trust isn't going to inflate it to make the lender happy (meaning I'LL CHOOSE THEM). If the appraisal comes in well under value, the seller can either sell to me at the new price plus some good will from my side or they can sell it to the next person that may or may not come along...

In the mean time, my current place is paid off and I'm in no rush to make a bad decision.

[CTR0022]

Originally Posted by Dale Moser

Builders had to switch to building specs last year, and some quit taking bill jobs altogether, for a few reasons.

1. Government induced material/labor increases were rising so rapidly that they couldn’t predict the actual cost to build the home beyond 8 months plus or minus, (A lot minus in many cases) so they couldn’t sign a contract until basically Sheetrock was done.

2. Government/demand induced material shortages were so bad that build times stretched out to un-predictable time frames.

3. For many people, the government induced “stimulus” money, was the most money many lower income folks had ever had in their account, coupled with low interest rates, prompted many of them to buy a house (that they couldn’t really afford).

Then interest rates spiked, causing buyers, and investors to stand on the brakes.

Now we’re all in limbo, and the market is heavy with homes with inflated build costs, and even more inflated purchase/finance costs….and everyone is just standing around looking at each other waiting for one cost or the other to go down.

There are much smarter individuals on here who can break it down more specifically than I can, but that’s the nuts and bolts of it.

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What are your thoughts on corporations buying up single family homes? Personally I think this needs to stop, and even reversed and force them to sell or the government will come in with
Eminent domain. If corporations continue to buy up SFH few will be able to buy a house and we will find the vast majority of people will only be able to rent. Corporations buying apartments, duplexes, condos, and other multifamily properties is all good, but not SFH.

Kinda off topic, but I think that is a factor that has recently driven up prices out of most people's reach.

[tx_basser]

I agree. It would be hard to figure out some way to regulate either through zoning or taxing them to death.

[Pineywoods]

Raw land prices have held or went up here in Polk County. Homes prices on the other hand, have plummeted. We could get approximately $75k less for our home right now than the offers we had in May.

[Sticks&Strings]

Originally Posted by ken800

We are going to be starting a new build here fairly soon. The house was "reasonably-priced" compared to other new home builders in the area and they offered a generous upgrades budget. This coupled with their reasonable upgrade costs, makes it a fairly solid deal. That said, I'm under no illusion that the whole thing can go south due to a rapidly dropping market... I have two ripcords I can pull if the whole thing tanks:

First, the earnest is only $3K so that's what I eat if I walk and I'd most certainly do that before I take a big hit. I've not had to put down any further deposits for upgrades.

Second, and this one is REALLY important: There is no forced waiver of appraisal. I will get an appraisal by someone I can trust isn't going to inflate it to make the lender happy (meaning I'LL CHOOSE THEM). If the appraisal comes in well under value, the seller can either sell to me at the new price plus some good will from my side or they can sell it to the next person that may or may not come along...

In the mean time, my current place is paid off and I'm in no rush to make a bad decision.

You had a builder agree to this?? I'm a builder and no way I'd lay my neck out there like that. Talk about a good way to go bankrupt quick.

We still have a lot of work and most trades and vendors I talk to are still busy. I'm curious what the next 6 months holds, but we currently are good for another year. Hopefully we can add another one or two to the list. Custom builds aren't affected by the rates too much, and we would really benefit from a drop in material costs.

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[ken800]

Originally Posted by Sticks&Strings

You had a builder agree to this?? I'm a builder and no way I'd lay my neck out there like that. Talk about a good way to go bankrupt quick.

We still have a lot of work and most trades and vendors I talk to are still busy. I'm curious what the next 6 months holds, but we currently are good for another year. Hopefully we can add another one or two to the list. Custom builds aren't affected by the rates too much, and we would really benefit from a drop in material costs.

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I didn’t have to ask… The builder only asked for a 3K earnest check and no additional money for the upgrades. As far as the appraisal, that’s pretty much industry standard for a lender. The house has to appraise, or the lender won’t proceed without money to cover the gap. Then it comes down to whether or not there was a waiver upfront, and there is no such thing on my contract.

Of course I went into this with a good agent to make sure my behind was covered.

[Throwin Darts]

Originally Posted by ken800

We are going to be starting a new build here fairly soon. The house was "reasonably-priced" compared to other new home builders in the area and they offered a generous upgrades budget. This coupled with their reasonable upgrade costs, makes it a fairly solid deal. That said, I'm under no illusion that the whole thing can go south due to a rapidly dropping market... I have two ripcords I can pull if the whole thing tanks:

First, the earnest is only $3K so that's what I eat if I walk and I'd most certainly do that before I take a big hit. I've not had to put down any further deposits for upgrades.

Second, and this one is REALLY important: There is no forced waiver of appraisal. I will get an appraisal by someone I can trust isn't going to inflate it to make the lender happy (meaning I'LL CHOOSE THEM). If the appraisal comes in well under value, the seller can either sell to me at the new price plus some good will from my side or they can sell it to the next person that may or may not come along...

In the mean time, my current place is paid off and I'm in no rush to make a bad decision.

I'm a lender. No bank is going to let you choose your appraiser. It will go out to bid through the lender's approved appraiser group and someone will pick it up. Nothing will stop you from getting your own appraisal but the bank will order its own for the purpose of making your loan.

[captainsling]

Originally Posted by Throwin Darts

I'm a lender. No bank is going to let you choose your appraiser. It will go out to bid through the lender's approved appraiser group and someone will pick it up. Nothing will stop you from getting your own appraisal but the bank will order its own for the purpose of making your loan.

This what I thought but didn’t want to look like an idiot if I was wrong. I tried to recommend a previous appraiser on my own build and the bank refused. Said it had to go into a pool.

[Rubberdown]

So…. I went and looked at that house and it just wasn’t for us. I’m thinking maybe I ought to talk to an architect and a custom builder. We like modern styles and there really doesn’t seem to be anything that floats our boat.

What’s the process to follow for this? Find an architect and have them shop lots with you and then find a builder to build the house the architect designs? Full disclosure I lived in a 1700 square foot house the last 15 years till we moved in with mom. We have a healthy budget but I’m not looking to build a massive mansion or anything. Maybe 3500 square foot range? Would like less but that depends on the rules where we want to build.

[BertramBass]

Originally Posted by Rubberdown

So…. I went and looked at that house and it just wasn’t for us. I’m thinking maybe I ought to talk to an architect and a custom builder. We like modern styles and there really doesn’t seem to be anything that floats our boat.

What’s the process to follow for this? Find an architect and have them shop lots with you and then find a builder to build the house the architect designs? Full disclosure I lived in a 1700 square foot house the last 15 years till we moved in with mom. We have a healthy budget but I’m not looking to build a massive mansion or anything. Maybe 3500 square foot range? Would like less but that depends on the rules where we want to build.

Buy a lot you like while talking to several architects. Once you pick an architect, he can begin to work on preliminary plans. Get a surveyor to do a topo survey with trees while getting your plans finalized. Shop/price builders and select one to build the house.

[glen]

Rubberdown- find out where you want to live and buy a piece of dirt there. Then go shop for a builder. Once you find one you want to use ask them. Most have guys they like working with

[Rubberdown]

Out toward magnolia somewhere I think is where we will end up. I liked the neighborhood I looked at yesterday… uhhh high meadow ranch. Had some rolling hills and seemed pretty quiet. Just very classic homes that we don’t much care for. I guess I’ll look at some lots out there, we aren’t in any hurry.

[Bill]

Originally Posted by glen

Rubberdown- find out where you want to live and buy a piece of dirt there. Then go shop for a builder. Once you find one you want to use ask them. Most have guys they like working with

X2

Buy land

Find a builder you trust and can work with

Ask him about Architects he trusts and can work with

My lesson learned building our retirement house- architect’s business models vary from big $ % of building costs, wanting to be involved start to finish including all interior design details (and you pay to have them drawn) and project management to those who charge hourly and do as much (or as little) as you want to pay for.


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[Rubberdown]

https://www.zillow.com/homedetails/1...ource=txtshare

I like this house but totally wrong part of town and doesn’t meet our bedroom requirements etc.

What would you call that style of architecture? I asked who their builder/architect was but haven’t received a response.

[Bill]

Originally Posted by Rubberdown

https://www.zillow.com/homedetails/1...ource=txtshare

I like this house but totally wrong part of town and doesn’t meet our bedroom requirements etc.

What would you call that style of architecture? I asked who their builder/architect was but haven’t received a response.

Buy a bottle of nice wine as a gift and go knock on their door and ask.


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[Huntindad]

Originally Posted by Bill

X2

Buy land

Find a builder you trust and can work with

Ask him about Architects he trusts and can work with

My lesson learned building our retirement house- architect’s business models vary from big $ % of building costs, wanting to be involved start to finish including all interior design details (and you pay to have them drawn) and project management to those who charge hourly and do as much (or as little) as you want to pay for.


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That is where we are at. Got the land looking for a builder. this is in Norhern Burnet County.

I'm in no hurry though.

[Sticks&Strings]

Originally Posted by Rubberdown

https://www.zillow.com/homedetails/1...ource=txtshare

I like this house but totally wrong part of town and doesn’t meet our bedroom requirements etc.

What would you call that style of architecture? I asked who their builder/architect was but haven’t received a response.

I am a builder and I have an architect I can refer. I have built contemporary before. It's actually easy unless you get crazy with some things. I'm about to wrap one up now in horseshoe bay. Have you looked in high meadow estates? I build in the magnolia area and have some older contemporary homes from the Conroe/Montgomery area I can probably get you pics of. The original owners have since sold them.

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[Cookiemonster1]

I would never make that deal! Hope that works out for each side.

[Jason Fry]

While we were talking real estate market, what’s the current status on over priced land that’s been on the market a while? Say a property that’s been on the market 200 days priced at 125K. Is that kind of thing where you should come in at 75 in “today’s market”?


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