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Skirting the I-Word: Dallas, Denver Home Prices Up, High, Is Legalizing Marijuana Next?

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New Home ConstructionRocky Mountain High takes on a whole new meaning as Dallas and Denver continue to lead the nation as the most vibrant real estate markets, according to the venerable Standard & Poors Case-Shiller Home Price Index that came out Tuesday. .

Here, too, is why more real estate investors are swooping in to Dallas to buy up properties: our home values are up, so much, in fact, that we have now surpassed the heights we attained at the peak of the bubble back in 2006. That’s right: our real estate values have climbed higher than we thought they could.

Dallas area home prices rose by an unprecedented 9 percent in one year. That was for August sales, of course; there is a month and a half delay in gathering and reporting all those sales, then deciphering the stats. And remember Case Shiller does not include new home sales so 9% could actually be conservative. New home construction continues to be in such high demand, there is no softening of prices.

That leaves Dallas home prices at 5% above their pre-recession levels. And August’s year-over-year percentage price increase for Dallas was the highest in the history of Case Shiller. According to David Blitzer, Dallas and Denver both set new real estate highs, and we don’t even have mountains or marijuana!

But we may all have to start toking if my nagging fear takes hold: inflation! That’s what I fear when I Read about our steadily climbing values. Kneejerk reaction is yes, great, our home is worth more. I feel rich!

Then: DCAD will be catching on, upping the old property taxes next. Ugh. Then won’t it be nice to sell my home for a nice juicy profit? Sure, but then I’ll pay capital gains tax and have to buy another home that may be smaller and less desirable than my current home, for more money!

Here is the 20-city Case-Shiller report. As you can see, some cities are enjoying some healthy upward valuations, especially Detroit and of course, California cities.

Nationwide home prices rose by 12.8 percent from August 2012 levels, according to Case-Shiller. Ha ha ha: what happens in Vegas apparently stays UP in Vegas: but Vegas values are still down 47.1 percent from freaky-peak levels. San Francisco, no stunner, was up 25.4%. I read somewhere that the proliferation of millionaires in the Bay area was leading to a class of ridiculously wealthy individuals who spend life being shuttled from their employment campus (like Facebook) to palatial $20 plus million dollar homes in Palo Alto. San Francisco is quickly becoming a city where anyone earning less than $100K cannot afford to live.

Blitzer said that 13 of the 20 cities Case-Shiller tracks had double-digit increase in home prices this August. Like I said, how long will it be before we start hearing about the “i-word”: inflation?

 

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Candy Evans

Candy Evans is one of the nation’s leading real estate reporters, bloggers and consultants. She reports on Dallas real estate for WFAA-TV’s Daybreak with Ron Corning, and is frequently called as a real estate expert by other Dallas media. She is also a real-estate editor for CultureMap Dallas, Modern Luxury Dallas, the Katy Trail Weekly and the White Rock Weekly. She even has her own web-based Real Estate show called, The Party Line. Candy has written for AOL Real Estate, and is a guest blogger for Joel Kotkin’s The New Geography, Inman Real Estate News plus a host of national sites. Candy was a longtime contributing editor to Dallas’ D Magazine and sister pubs, and in 2007 founded the wildly successful Dallas real estate blog, DallasDirt. That’s where she broke the news on where former president George W. Bush bought his Dallas home in 2008. She is the founder and publisher of an exciting platform of Dallas-based real estate sites including SecondShelters.com, devoted to the vacation home market, and her signature CandysDirt.com, everything you need to know about real estate in North Texas. And yes, we are still psyched about the GOLD! In 2013, CandysDirt.com was named Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations, and the only association for journalists covering real estate, home and urban design. We snatched silver in 2015, and who knows what 2016 brings...

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