Home Buying in Seminole>Question Details

Kelly, Home Buyer in Crawford, NE

I live in Seminole TX, which right in between Odessa TX and Lubbock TX. Our economy is in the middle of

Asked by Kelly, Crawford, NE Tue May 6, 2008

a huge boom. (We are oilfield) The housing here has a little more than doubled in the last 2 years. We are looking at buyin a home that is 2176 sq ft. 3 bdrm 2 bath. Dble car garage. Corner lot, nie neighborhood for 159,000.00. My only concern is our ever endangered economy. I'm worried about paying top price for this house that may drop in 5 years. Any Advice? on a statewide scale do you see the real estate dropping dramatically in the next few years?

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Looking back at new builds the housing has appreciated in the last 5 years, but on an average our economy has always remained stable. Our agricultural base along with the oilfield has always kept our market higher than some area towns. Seminole is land locked also with oil companies owning land adjacent to the city limits. In over thirty years of selling real estate there have been very few times people lost money on homes I have sold them if they maintain them and live in them for two years or more. Call if you would like figures and facts to look at to help your decision process.
0 votes Thank Flag Link Wed Jul 25, 2012
Kelly,

I understand your concerns, and if you expect the price of WTI Crude to get cut in half within the next few years then don't buy. If you do believe that oil prices will hold in a general trading range as a worst case scenario then you should be fine.

A more global question is do you NEED to move in a couple of years, if so, then maybe renting is the way for you to go. If you don't need to move then your probably OK to purchase now. Remember, new homes will be more expensive in the future as homebuilding costs will be higher as commodity prices inflate (lumber, oil, concerte, copper, etc.), so what may look like a higher price now, might not be quite so high in 5 years. One more item to consider, if inflation comes along (and I believe it will), the best thing you can have is long term, fixed rate debt on a home that you own. Why you ask? Because your paying off your mortgage with inflated dollars and your home should appreciate faster as home prices will 'inflate' while your mortgage stays at the same rate.

Good luck!

Scott Butcher
Mortgage Banker
Maker Capital Group, LLC
2307 Lake Austin Blvd.
Austin, TX 78703
512-796-7738
scott@makercapitalaustin.com
0 votes Thank Flag Link Wed May 11, 2011
Randy Carlisle Broker at FIRST CHOICE REALTORS. I have bought and sold houses in Seminole for 35 years and always made money. I have done this personally as well as professionally. We have gone through bad times and good. No one has chrystal ball, but Seminole has always been a good bet.
0 votes Thank Flag Link Tue May 10, 2011
Kelly,
Unfortunately no way to predict the future. If oil hits $250/barrel prices may double again in five years. If it goes back to $50/barrel the prices that doubled in the past two years could go back to previous levels. On a statewide scale I do not think prices will drop, but all real estate is local. For example there are parts of the Dallas area that have prices falling and some that are going up dramatically. If your prices have spiked due to increase in oilfield related activities and those go away prices will drop.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Tue May 6, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Texas is the #1 inbound state in 2007. My suggestion work with a GREAT agent, request to see homes that are on the lower end of price per sq. ft. , foreclosures, pre-foreclosures, relo's, you might be able to Pick up a deal there. So if the market does drop you did not purchase on the high end of sales cycle .

Keep in mind in order to work with realtor you need to be pre-approved for a loan to submit any offer we can assist in that service contact my office.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue May 6, 2008
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