Are These 5 Myths Keeping YOU From Moving To Dallas?

Are the rumors about Dallas really true? Do cattle roam the streets of downtown? Or is it only angry, gun-slinging California haters wandering the streets of Dallas?

Well today we’re going to explore that. We’re going to sort the truths, from the half-truths to the all out lies and hopefully help you make up your mind once and for all about whether Dallas is the right place for you!

Today we’re busting out 5 of the biggest lies about living in Dallas. 

Lie #1 Don’t California my Texas

If you were to google the phrase “Don’t California my Texas” you’re going to run into a song, a bunch of t-shirts and some not too nice explanations of what exactly that means. A quick glance at Quora revealed definitions like “When you…escape from a high-tax overly-regulatory state, don’t vote for the same …politicians who ruined the state you came from.” The Houston Press has their own spin on it. Jef Rouner says “Don’t California my Texas is so stupid”. He equates the expression directly to politics. It’s something you hear “any time a story about Texas becoming Blue shows up” he says. He goes on to describe the expression as a “scream that Texas should not become California by moving left.”

Well, the idea of the gun toting conservative definitely has a lot of truth to it. You have concealed carry, open carry, it’s all good. But while many Texas residents may, indeed, be carrying, and they probably are, the rumor that these Texans are all angry about newcomers is not necessarily true. Yes, Texans ARE fiercely protective over their freedoms, it’s true, and according to Texas Monthly, “Lone Star State leaders have worried about transplants importing West Coast values and politics here.” 

It’s a way of life Texans have come to be proud of and one they’ve worked hard to keep. So while your average Texan may get a bit testy if you start trying to change their freedoms, they’re not going to be phased by Californian or New Yorker neighbors. 

Jef Rouner points out that “Just as Texas has a lot of Democrats, California has a lot of Republicans.” He goes on to point out that  “you’d think… the ones who would want to come to a… conservative state would be the ones who lean that way.”

In fact, your native Texan neighbors will probably be congratulating you on your recent move. After all, you’ve finally made it to the promised land! Texans know they’ve got a good thing going and that many people are hoping to get a piece of it. 

In the end, “Don’t California my Texas” is about Texans resisting a mindset, it’s not about the actual people.

 Lie #2 It’s really easy to find a job here

You’ve probably heard that there are job opportunities everywhere in Dallas. In fact, it might be easy to think if you have a pulse you’ll get a job, but it doesn’t necessarily work that way.

Now, when it comes to sectors like fast food and retail, you know, entertainment like Six Flags and Hurricane Harbor yeah, there are going to be a lot of positions. If you’re good with $10 an hour, the jobs are plentiful.

In fact the Texas Labor market review showed retail salespersons and maintenance and repair workers as two of their top ten occupations. 

That being said, for higher paying positions you need to know the competition for employment in Dallas can be quite fierce. Plus, a lot of the positions are highly specialized. In fact looking back at the Labor Market Review you can see several highly specialized occupations such as software developer and various computer occupations. Also in the top ten are numerous managerial roles. 

Another thing to consider is many companies relocate their employees when they move to Dallas. 300 people a day are moving to Dallas and many of those are being relocated with work. Many of you have reached out to us already this year regarding your move and what we typically see is either your company is transferring you here or you’re requesting to be transferred here. 

So ultimately, yes, there are a lot of jobs in Dallas but you need to prioritize your education and you need to bring your A game if you hope to score one. 

Speaking of education, that leads me to 

Lie #3: All schools are terrible in Dallas

Let’s be real, In a metroplex as big as this one, there are bound to be lots of different ratings but the Texas Education Agency released their findings in late 2022 and there were plenty of A and B rated schools both in Dallas as well as the entire metroplex. In Dallas county alone you see a balanced representation of some A’s, mostly B’s and just a few C’s.

In fact, if you were to broaden those results to the whole Dfw area, you’d find 19 A-rated schools, 40 B-rated schools, and only 4 C-rated schools. That’s not too shabby.

When you reach out to us, let us know schools are important to you and we can prioritize that as we set up a home search. Speaking of taking that next step, check out our Let’s Find Home Questionnaire in the description section and we’ll get started.

Now when it comes to higher education, Dallas County takes that very seriously and invests heavily. Dallas County Community College boasts 7 campuses across the county, nevermind the 11 campuses in nearby Collin County and 6 campuses in Tarrant County. 

On top of that, dual credit classes for high school students are free and many, many high schools have programs that work with the local community colleges. Dallas has made sure education is accessible for all of its residents with steeply discounted tuition as well. 

So the whole “All schools in Dallas are terrible lie”? Completely debunked.

Moving on to Lie #4 Dallas is just one big suburb

Maybe you’ve heard this one overtly or maybe you didn’t realize that  is basically how you’ve pictured it. Either way, this is a huge lie! 

In fact, Wallethub named Dallas the 4th most diverse city in America. That’s right, just below New York City itself.  Here in Dallas it’s not an exaggeration to say we truly have something for everyone. There are plenty of retirement communities and definitely tons of family suburbs. You’ll find areas like Addison and Las Colinas that really tend to dote on singles life. You’ll find everything from downtown lofts to acreage in the middle of nowhere. 

Also, when it comes to restaurants and retail, many suburbs represent every ethnicity you can imagine. If that’s important to you, you’ll find it in particular in communities like Carrollton and Arlington. 

So, you want neighborhoods with acreage? Look in suburbs like Midlothian and Waxahachie. You want suburbs with very small yards but lots of open greenspace? Look at suburbs like Allen and Frisco. You want suburbs with private lakes and resort style amenities? Look at neighborhoods like the Viridian in Arlington or Southpoint in Mansfield. You want neighborhoods adjacent to public transportation? Look in suburbs like Irving and Carrollton. You want only new construction? Look in suburbs like Midlothian, Mansfield, Rowlett, Sachse. 

You see, even though Dallas DOES have A LOT of suburbs surrounding it, each suburb is very different and unique. If you don’t believe me, subscribe to my channel and check out my vlog tours playlist. We have some 70+ vlog tours on there. 

Next up Lie #5 The housing prices in Dallas are too high

When it comes to Texas, I checked out the regional price parities with the Bureau of Economic Analysis and you’re going to find Texas is just below the national average. There are 18 states that have more expensive housing and 31 that have less expensive housing. So, while we may be right up next to New York City and Los Angeles when it comes to diversity, we’re nowhere near there in terms of housing costs. 

Now you may hear one thing or the other, some will say you should move to Dallas because of the low cost of living and some will say you shouldn’t move to Dallas because of the high cost of living. It all depends on where you’re coming from and what you’re comparing it to. If you are coming from one of those lesser expensive 31 states, Dallas may very well be quite pricey compared to what you’re used to. 

But don’t forget about the suburbs! Lucky for you, even though many areas in the metroplex are pretty expensive, not all of them are. In fact, some are really very affordable. As a general rule, the South Dallas and Ellis County areas tend to be far more affordable than North Dallas and Collin County. South Dallas also has lower grocery prices and just in general a lower cost of living. I did an entire video comparing north Dallas and south Dallas and if you’re interested you can find it right here.

Millennials Are Being Excluded From The Dallas Housing Market: Here’s Why AND How To Fight It

Did you know “a 2019 study by Apartment List found that nearly 90% of millennials want to own a home”? But, according to a recent study by Freddie Mac, “today’s millennials are mostly renters, (with) their homeownership rate (at only) 43%.” Well I wanted to know why, if 90% of millennials actually want to own a home, why are only 43% successful? So, I decided to get some answers. I picked up some Jersey Mike’s for lunch, sat down with Freddie Mac’s Millenials and Housing guide and I can’t wait to show you what I found!

Road Block Number One: Home Prices and Affordability

Well, this might surprise you. Did you know, according to Freddie Mac, “more qualified millennials… (are) earning higher incomes than the generation before them”?  Yeah, millennials actually have a higher income than all other previous generations and yet one of the biggest problems they’re facing is affordability. Freddie Mac describes how, “the cost barrier to enter the housing market is higher for millennials today than it was for prior generations.” They don’t leave us in the dark as to why though. Freddie Mac explains that “Home prices have grown 4X faster than household income”. Even with income increasing there’s too much of a gap between income and home prices.

Road Block Number Two: Low Inventory

63% of Millennials report that the most challenging aspect of buying a home is simply finding one. Many Millennials are only able to afford older homes. The problem that comes with that, according to Freddie Mac, is “buying an older home comes with the added cost of renovation.” Freddie Mac is trying to help out here. They created their CHOICE Renovation® mortgage to assist with this. They explain that this program allows borrowers to “finance their home purchase and renovation costs in a single-closing transaction.” Unfortunately, the shortage of housing inventory also leads to high costs in urban areas, forcing Millennials to buy in the suburbs – but that ends up driving up commuting costs. Sam Khater, Vice President and Chief Economist of Freddie Mac sums it up in a nutshell. He says, “the supply of unsold homes is at the lowest level in four decades.”

Road Block Number Three: Millennials Are Struggling With Misinformation About The Housing Market

Daniel De Vise recently wrote an article for The Hill entitled “Survey finds Americans wildly misinformed on housing market”.  He describes how “Twenty-eight million Americans plan to purchase a home in 2023” And on average, “they hope to spend $269,200.” The problem with that? According to Federal Reserve statistics “Home prices crossed the $269,000 threshold sometime in 2013.”  The current median sales price, according to RedFin was “$388,100 in December”. Why might buyers be so wildly optimistic about home prices? Well, because “Two-thirds of Americans surveyed said they expect an imminent crash.” That’s not what real estate economists are seeing though.  On the one hand, you have economists at places like Red Fin predicting a “4 percent drop” in 2023 and then you have this huge amount of homebuyers expecting a 31% crash In order to purchase a home for $269,000.

That isn’t the only misinformation we’re seeing though. De Vise comments that “61 percent of Americans told pollsters current mortgage rates are unprecedented, meaning that they have never been seen before.” The sad reality is that “Homebuyers have basked in a climate of historically low rates for more than a decade.” The truth of the matter is that over 30 of the past 50 years have had interest rates higher than 6%. There’s a lot of misinformation out there and that’s become a real roadblock.

Road Block Number Four: A Lack of Financial Literacy

Freddie Mac describes that “Despite having more college and graduate degrees than any of the older generations, only 16% of Millennials are considered financially literate.” That is according to a 2018 study by the TIAA Institute. They comment that “recent research has shown that many adults have a poor understanding of basic personal finance concepts.” Keep in mind this study was based on evaluating graduate students! Another compelling statistic completed by Freddie Mac showed that “only 19% of millennials that assess their own financial knowledge as “high” or “very high” (actually) qualified as financially literate.”  So, why is this? Well Freddie Mac explains it this way. They said, “the millennial generation’s educational success and record of higher average earning compared to previous generations at their age are impressive.” But, they continued,  “the learning curve tied to successfully purchasing an affordable home is steep and typically not included in high school and college curricula.”

Road Block Number Five: An Inadequate Understanding Of The Home Buying Process

A recent survey from Freddie Mac concluded that  “Most millennials ages 24-29 are not confident in their knowledge…of the homebuying process”. They identified saving for a down payment as one of the biggest challenges to buying a home but “nearly 42% of millennials… were under the assumption that they are required to put a 20% down payment on a home”.  Many were unaware of government loan programs like FHA that require a 3.5% down payment or USDA and VA loans that don’t require a down payment at all. The Freddie Mac study listed numerous ways to overcome the down payment hurdle. They describe how “there are other ways to raise down payment cash aside from savings, including nonprofits or agency assistance and gifts.” They explained that “when it comes to housing assistance, there are over 2,500 nationwide programs that provide grants and loans to make homeownership more attainable.” They have an entire web page on down payment assistance programs and all the different places and sources you can look.

So, affordability and a lack of inventory are massive issues for millennials but there’s also just a ton of misinformation and missing information out there! If you find yourself in that position, check out the several links and a buyer’s guide explaining the home buying process below. Now, if you want to be on the look out for the three biggest homebuying lies in the Dallas market today then this video is where you want to head next.

Download our First Time Home Buyer's Guide

Additional publications from our preferred lender:

10 Tips for Buying Your First Home

What Is Downpayment Assistance?

You can buy a home with 3% down

Guide to Mortgage Financing Options

Dallas Is Full Of Underwater Homes | Could They Sink The Market?

Equity risk isn’t exactly prize conversational material. It isn’t a term you’ll hear at the grocery store or when you’re picking up lunch or even at the gas station. But it’s one you need to be aware of because it could mean the unraveling of the Dallas housing market.

So let’s dive deep into this issue of equity risk. We’re going to talk about what it is, who has this risk, and what are they at risk of? Oh and stick around to the end because we’re going to talk about how this could literally sink the entire Dallas housing market.

What is equity risk?

Before we get too deep (pun intended!) into this conversation about underwater homeowners and equity risk, let’s talk about what those terms actually mean. As you might have guessed by now, a person who has equity risk means they’re underwater on their home. Money.com describes it this way, they say “a home is underwater when the owner owes more on the mortgage than the home is actually worth.”

You may have also heard it called being ‘upside down’. This happens when the value of the home depreciates to a lower amount than what the owner originally bought it for. Now the homeowner has equity risk because if they can no longer afford their home, they can’t afford to sell it either because they owe more on it than it would sell for. 

So who are the homeowners most at risk of going underwater? 

Unfortunately, according to money.com, “The risks posed by falling home values are greatest for people who bought houses within the past year or so” In their October Mortgage Monitor, Black Knight comments on the same dilemma saying how “a clear bifurcation of risk has emerged between mortgaged homes purchased relatively recently versus those bought early in or before the pandemic.”

The major home value increase we saw in 2020-2021 is resulting in many of those homes now having depreciated well below what their current owners bought them for. In fact, Black Knight goes on to say “Of all homes purchased with a mortgage in 2022, 8% are now at least marginally underwater and nearly 40% have less than 10% equity stakes in their home”

But that’s not the worst of it. Those who purchase their homes during that period with an FHA or VA loan are at even greater risk. “More than 25% of 2022 FHA/VA purchase mortgage holders have now dipped into negative equity, with 80% having less than 10% equity” When compared to equity “risk among earlier purchases”, those buyers’ risk “is essentially nonexistent”

So what exactly are these buyers at risk of? Won’t equity just build up over time? Why is this a big deal? 

Well for starters, if something goes wrong and the owners can no longer afford their home or they need to move, they can't sell their home without losing money. Think about all the simple possibilities that could lead to making less money or having more expenses. 

Although unemployment numbers are currently low, the Fed has actually said they NEED unemployment to increase in order to lower inflation. And we all know what happened the last time the Fed decided they needed to ‘fix’ something. 

In fact, according to CBS News, “The Fed forecasts the unemployment rate to rise to 4.4% next year, from 3.7% today — a number that implies an additional 1.2 million people losing their jobs.” On the other hand, we know none of these buyers’ mortgage rates will go up.  Remember, these homeowners all have 3% fixed rate mortgages.

But what part of their monthly expenses could go up? Well home repairs for one. In the raging chaos of the seller’s market many buyers were skipping the inspection period altogether and they weren’t asking the sellers to fix anything. 

The biggest risk, though, are rising property taxes. Actually, I have been concerned for quite a while that this will wreak havoc on the Dallas housing market.  I even discussed it in this video that I made eight months ago. 

Why am I so concerned about property taxes in Dallas?

Property taxes here are evaluated in the spring and the bills go out in the fall. Now homeowners CAN protest these values but the 2022 homeowners we’ve been discussing aren’t going to have a leg to stand on because the values are probably going to increase to what they paid for the home. 

The brunt of this impact isn’t really going to be felt until the fall of 2023 when homeowners begin receiving their property tax bills and being notified that they have an escrow shortage. And here’s where the crisis will really hit: if these homeowners can’t afford the taxes on the home and need to sell, they can't. They don’t have enough equity to sell!

What does this mean? How can I prepare?

One of the best things you can do to prepare is stay up to date on the current trends of the market so you can be prepared for what’s coming. And how can you do that you may ask? Well keep reading our blogs of course!

But what does this mean for the Dallas market NOW you ask? Most likely an increase in foreclosures. Black Knight shares, how, “while still relatively low…the early-payment default” Or EPD, “rate – which captures mortgages that have become delinquent within six months of origination –– has risen among FHA loans for much of the past year to reach its highest level since 2009”

What do foreclosures mean?

With an increase in foreclosed upon houses comes an increase in supply of homes for sale and with an increase of for sale homes supply always comes lower home prices. On top of that, prices will also be driven down because foreclosures sell for less and the other homes for sale will have to compete. 

So where does this leave us?

We’re currently at a perilous balance between the current low supply and unaffordability and the prospective future’s increase in supply and low prices. 

Right now, the general unaffordability should be causing home values to plummet but they’re not because we have a supply shortage. With the ever increasing Dallas population, Black Knight states, “what would ordinarily be an environment ripe for steep declines in home prices has been offset somewhat by stagnant levels of for-sale inventory.”

Realtor.com also comments saying, “There is a dire shortage of properties for rent and sale with many more buyers and renters than there are available homes. That keeps a floor under prices, preventing them from falling too far.”

However, if foreclosures increase supply it could tip that balance. So in the end, equity risk isn’t just about these 2022 homeowners, it puts everyone involved in the Dallas housing market at risk.

A property tax crisis could truly upend the market this fall but what about right now? What shocking things are happening in the market at this very minute? Well If you want to know that you’re definitely going to want to check out this video. In the meantime, Wendy out!

Buying A Home? Don’t Believe These 3 Lies!

A lot goes into buying a home. You have to save up for a down payment, decide on a lender and fill out a bunch of paperwork. Oh, and after that you have to decide what you even want to buy and where!

The last thing you need is to be lied to so read on as we shut down the top 3 lies about buying a home in 2023. Oh and stick around to the end because I’m going to tell you the one thing you should never do when you’re in the middle of buying a house. 

Lie number 1:You should marry the house and date the rate

How many times have we all heard this phrase, right? Basically, it means you’re committing to a life-long, long term relationship with the house you love but you can dump the interest rate when you refinance. So where’s the lie? 

We’re looking at a two in one here. This phrase makes two assumptions that are not always true. The first is that the entire premise assumes interest rates will always come down. Right now the bond market does seem to be indicating rates will be going down, at the end of the day this is out of your control. So instead of making that dangerous assumption, evaluate your relationship with the house first. 

Here’s the second lie within the phrase: You should always marry your house. 

Ever heard of the equity game? Sure, we’d all love to have our first house be the perfect home for the rest of our lives but in reality, that’s almost never the case. Most first time home buyers can barely afford a home at all in this market much less their dream home. The equity game allows you to buy a small first time home, build equity, and then sell and move on to something bigger and better. 

Besides, as life changes, so do our needs for a home! Small first homes are outgrown when kids come along, large, family homes eventually become burdensome once your kids have grown and gone, and a lot of times people in the military, college, or other various careers end up relocating every few years. 

Why marry your home when you could just date it instead? Colin Robertson comments on this. He says, “If you’re not looking for a serious commitment, why get involved with a 30-year fixed? Especially one you have to pay a premium for?” 

If you’re not marrying your home, what does that mean about your relationship with the rate? Well for starters, don’t close your mind to an adjustable rate mortgage or an ARM. Bankrate explains that “Generally, the initial interest rate is lower than that of a comparable fixed-rate mortgage” Colin Robertson continues on why ARMs are a good idea, “ARMs are mostly hybrids…with long periods of fixed-rate goodness (such as 5/1 ARM or 7/1 ARM), meaning you can date your rate for a good amount of time before looking for a new rate.”

An adjustable rate mortgage might go up after it begins to adjust or it might go down. The rate cap is a very important feature. It controls how much your interest rate can adjust each year.  If your interest rate was at 3% in January of last year and today’s rates are well over 6% your rate would still only adjust to 4%. That’s the protection the rate cap offers and why it’s so important.

So yes, you’re sharing an amount of risk with the lender, but that’s exactly why you get a lower rate!

Now a 2-1 buydown is a completely different animal. It will definitely go up. This loan is more risky but is also predetermined. 2-1 buydowns are mortgage agreements that offer a low interest rate for the first year, a medium rate for the second year, and then a higher or full rate for the third year and rest of the loan. This is a good choice for those who know their income will increase year over year. 

Ultimately, there are circumstances where adjustable rate mortgages make sense but it should never be based on assuming the rates will adjust downward. So be open to different types of mortgages depending on your relationship with the house, but don’t make decisions about your budget assuming rates will go down. Whether or not rates go down isn’t your decision to make.

Lie 2: Your lender decides how much home you can afford

This lie assumes your lender should decide how much you can spend on a house. Financial professional or not, the lender will never take all aspects of your life into consideration when qualifying you for a home. This should always be YOUR decision. 

Lenders base their qualification by what’s shown on a credit report. Gobanking rates explains that “lenders look at how much debt you’re responsible for on things like credit cards, car loans and mortgages” but there are several other regular expenses that don’t show up on your credit report. Things like groceries, gas for your car, and even childcare can’t be forgotten when deciding on your budget for a new home!

This is where it comes down to you. You as a buyer must have a carefully planned budget that also assumes certain expenses will increase after your home purchase. Property taxes are going to go up, you’ll have home maintenance and repairs, and your utility bills will go up if you’ve moved into a larger home. 

 In the end, don’t let the lender or anyone else for that matter decide on your budget. This is your decision and yours alone.

Lie 3: Real estate always goes up in value

This one is an especially dangerous lie because there is an element of truth in it but it totally depends on your timeframe. Over the years, real estate value has gone up. But if you’re looking to sell only a season or two later, your value may not have gone up. In fact, it could have even dropped a bit at that point depending on the market condition. 

As a whole though, home values have appreciated nearly 4.6 percent per year over the last 65 years. Looking at the long haul, your home’s value is likely to go up, but there may also be seasons in between when the value goes down. 

You need to understand that this is completely normal! Home price appreciation isn't a straight line up. There are times where home prices go up and then the next year they go down then they go back up. So even though the long-term trend for Real Estate is up, you have to make sure that you're buying for the right reasons and have that longer term time horizon so that you protect yourself against any pullbacks in the market.

Now that you know the three lies, what’s the one thing you should never do while buying a new home?  Anything that involves credit. Guaranteed Rate explains that “If you take on new debt…the whole loan application may need to be redone…or (it could) …lead to the rejection of your application.”

But what about using credit when you’re buying new construction? I’ve heard that can take months if not up to a year. How am I supposed to handle that? Well new construction is definitely a whole other ball of wax and to get the answers to that question you’re going to want to check out this video right here! https://youtu.be/lbhEDWEhYKE

Warning: Think Twice Before Moving to Dallas!

Ah, the great state of Texas - home to everything from delicious BBQ to some of the most dangerous highways in the country. But what about the city of Dallas? Well, it turns out that while there are some great things about living in the city, there are also some pretty big drawbacks. From congested highways to extreme weather conditions, here are three reasons why Dallas may not be the best place to live.

Dangerous Highways and Congested Traffic

Let’s start with one of the biggest issues facing Dallas residents - traffic. The roads in and around Dallas can be incredibly congested - so much so that 11 of the 50 most dangerous highways in America are located right here in Texas. If you’re looking for a way to avoid these traffic nightmares, then you may think of investing in a public transportation system but unfortunately for you and other Dallas citizens, it ranks 65th out of 100 cities for quality – not exactly encouraging news!

Lack of Natural Beauty

Unfortunately, if you’re looking for natural beauty within Dallas itself then you’ll be sorely disappointed. In fact, according to one report, Dallas has been named one of the “ugliest cities” in America – ouch! Of course, this doesn’t mean that all is lost – there are still plenty of parts within and around Dallas where you can find incredible natural beauty and avoid traffic altogether. To learn more about these areas (and how to get there!), make sure to check out our North vs South video for a full breakdown. By the way, it won't hurt to have a good realtor helping you find the best areas of Dallas either!

Extreme Weather Conditions

Finally, those who live in or near Dallas know all too well that extreme weather conditions can be quite common throughout the year. From hot summers with temperatures soaring above 100 degrees Fahrenheit to cold winters with power outages due to snow storms and floods during springtime, it seems like no matter what time of year it is something is always happening weather-wise!

It may not always be sunshine and rainbows here in Dallas but that doesn't mean that living here isn't worth considering. Yes, there are definitely drawbacks such as dangerous highways and lack of natural beauty but if you're willing to take on those challenges then you'll find yourself surrounded by friendly people and plenty of amazing opportunities! So if you're thinking about moving to Texas don't forget about our beloved city - the good, the bad and the ugly!