Too Much Speculation In Dallas?
Ms. DiMartino at Dallas News explains that speculation is booming in Dallas. "To say that local prices won't fall simply because they've risen more elsewhere is equally naïve. In fact, a lack of appreciation in a market like Dallas can be downright toxic, especially if new supply continues to flood the market."
"Too often, local readers e-mail that they can't get their 1- or 2-year-old home appraised for what they paid. All the while, new developments keep popping up as fast and as far as the eye can see. Teardowns are occurring at a pace last seen just before the late 1980s crash."
"'There is an enormous demand for investment real estate,' Joe Milkes said. 'As a result, prices are getting pushed up.' It's becoming more common to see a single buyer gobble up a dozen homes at a time at new developments. Add a bit of speculation to the supply and demand and you get a partial explanation for why local foreclosures remain so much higher than the rest of the country, and why it's dangerous to assume that there's no downside risk in local home prices."