Are Dallas Listing Prices Increasing?
A Reader asks:
I noticed something odd in the listings lately and wanted to know what you think. There are a few listings that have increased their prices recently. Mainly, one in Farmers Branch was listed a couple of months ago for 699K, now it’s listed for 779. Another in far north Dallas was listed at 700K, now listed for 800K (but updated to say they will now pay for a custom pool - although I don’t think they are planning for a 100K pool to justify the price increase). What is going on? Are homes selling for more $ than expected, is that why listing prices are going up and/or homes relisting for a higher price?
Realtors, what the heck is going on out there? I hear we are a hot market for anything over $2 million, softer than Silly Putty anything under a $1.5.
11 Comments to “Are Dallas Listing Prices Increasing?”
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I’m curious about this as well. A cousin of mine and her husband bought a house on Milton last year, remodeled it, then moved in after their baby was born. 2 months later, they moved to another house down the street (wacky father-in-law wanted more bedrooms, so he upgraded them). So their previous house was put on the market a little later. Then in recent weeks, the list price has increased by another $100K or so.
I honestly don’t think they should ask that much when the main remodel was repainting the house, no extensive changes like my own flooring upgrade.
If their realtor’s logic follows the same, I should be able to ask another 10% above my first list price, assuming I decide to sell my house.
$779? In Farmers Branch? Where, pray tell, is that neighborhood? I’ve never seen anything in FB over $220k.
The 779k home is in the Courtyards community by Brookhaven (I think the street is called Vineyard). As a regular homebuyer, this puzzles me since this community has several homes for sale and the builder has decreased the price of new constructions there by 100K.
I was wondering if these cases were examples of overly optimistic sellers or if the market is actually a lot better than it seems to those of us not in the industry. Or could it be that while fewer homes are selling in the 650-750K range, the ones that sell are selling for high $$?
Thanks for the input.
I have noticed that too, actually. A property down the street from my parents came on the market one day, and the very next day it was re-listed for $40,000 higher. I think that might be a lister’s remorse move, but interesting none the less. While I can’t say prices are up across the board, they are up in Preston Hollow and in the Park Cities–check out Lydia Player’s blog if you don’t believe me…and then do a thorough fact check if you don’t believe her.
I’ve also noticed properties that drop their price erratically. For example, another house, on the same street as the above mentioned listing went from $2.875M to $2.657M to $2.495M in about 4 days. Don’t know what was going on there–I though the first price drop was a move to get attention for a very odd number.
I think the moral of the story is: there isn’t a lot of reason / justification when it comes to these anomalous listing increases. Who knows whose idea it was–doubt you will ever get the realtor or the homeowner to say. If it’s a strategy to put it into a hotter price range, that’s just kind of shooting yourself in the foot. Not only have you increased your price, but now you’re competing with houses that yours doesn’t compare to.
A little note about our neighbors to the North West, Farmers Branch: I know Farmers Branch is really trying to revamp its image–so we don’t think of it as that nasty little suburb with borderline nazi-like immigration policies. There is supposed to be a big development along the new DART rail extension; a transit oriented development a la Mockingbird Station (I believe called “Branch Crossing”). There has been a lot of new construction in the area, and the town of FB is giving a lot of incentives to builders and buyers. That being said, I still don’t think I could ever live there, for a few reasons which I’ll leave to your imagination (and no, it has nothing to do with my citizenship).
Prices are set based on “replacement value.” Builders can’t see something for less than what it costs to produce. The cost of construction has never gone down because it is an industry devoid of any innovation. Therefore, with historical reliability the cost of production will always go UP. This combined with the reality that as long as an area grows (jobs and people) more inventory will be required.
Price declines have only been seen for cheap product in marginal areas.
I don’t think there is anything unusual about this.
should have said “can’t sell for less . . .”
A large part of my job consists of scouring the internet, researching real estate trends throughout the country. From what can delineate about the San Antonio is that while it may not have it the bottom just yet, things definitely appear to leveling out. Could it be that these homeowners are A) Are not desperate to move ) B) Anticipating an upturn in the market or c) Taking bad advice from their agents? In time, weather or not these homes move will determine if the posturing of the owners proves to be fruitful. Either way, it will be interestng to see what happens.
What, you didn’t like my senerio?
d) on crack
There are plenty of homes in FB over $220K. And not everyone buying inot the community or living in the city is anti-illegal immigration or a bigot. There is a big push for redevelopment and it just might happen.
I was under the impression that said development was happening…as in, there is money available / set aside and they are working on a master plan…
Well, their city council certainly had an interesting, well publicized vote/discussion at the end of last year involving the issue of (illegal) immigration. No one ever said all people in FB were all bigots or all anti-immigration, but their representatives do have a public record of being just closed minded…the whole “They took our jobs” mentality raised on South Park.
The new development is pretty much Farmers Branch’s last stand. They need to do it well, because they won’t get a do-over.