DFW Real Estate Cooling Off - WSJ

[Jim Cummings]

Wall Street Journal: DFW Housing Market Cooling

November 27, 2018

PLANO (Wall Street Journal) – "Dallas' once-vibrant housing market is sputtering," reports today's edition of the Wall Street Journal.

The paper reports builders in Frisco's high-end neighborhoods are cutting new-home prices by up to $150,000. Earlier this month, one street had $4 million worth of unoccupied new homes.

"Even though the economy in [Dallas] has boomed, home prices have grown much faster than wages, and buyers have been straining to afford homes," reported the Journal.

"We have this huge affordability crisis," said Ted Wilson, principal at local consulting firm Residential Strategies. "With mortgage rates going higher, we're hitting a ceiling."

New and existing home sales in Dallas-Fort Worth fell 3.6 percent year over year in October, according to Real Estate Center data. Meanwhile, median home price growth slowed to less than half the pace of a year ago.

[Trent Honea]

I used to work in the Plano and Frisco area and the key phrase is:
in Frisco's high-end neighborhoods 

You have to have very high starting prices to cut by 150k when they go on sale.  The high-end in that area are somewhere around 500k-1M, I think (I don't have current numbers).  I don't typically invest in that area for rentals.  How about you? 

In the "middle-class" neighborhoods I invest in, prices are not dropping, but time on market is starting to creep up.  Buyers seem to be getting picky and not offering 10-20k above list to guarantee they "win" the house, as they have in the past couple of years.