Housing Valuations (Dallas, San Antonio, Austin: real estate, foreclosures, new home)

[Spree]

I ran across these links on another board and found them interesting and it's something we've talked about here on the Dallas board - housing appreciation, valuations and over evaluations for different parts of the country. This is an interactive link:

Housing Valuation Analysis*-*Corporate*-*National City Corporation

And another that breaks down the appreciation/over evaluations by major city. It's a PDF and if you look on the 3rd page, under summary, 4th bullet there's a mention of TX gains.

http://www.nationalcity.com/content/...2007report.pdf

[loves2read]

I would not trust that first one--did not really investigate to see how they get their numbers but it says Dallas and FTW housing has dropped over 20%--that is just not the truth...maybe in selected subdivision or some houses...

[cdelena]

Very interesting report, thanks for posting.

The methodology is interesting and if you read it they point out the large standard deviation in the numbers. It certainly is a way to look at price / demand in each market place but I am not sure how useful the numbers really are. The assumption is the highly 'overvalued' markets are ripe for a fall and the 'undervalued' markets will trend from steady to upward.

I wonder if a look at cumulative price gains might provide the same general indication... momentum plays are often in for a correction. In any case it is an interesting look at housing markets across the country, but I would be careful about drawing conclusions from it alone.

[BobDole]

Originally Posted by loves2read

I would not trust that first one--did not really investigate to see how they get their numbers but it says Dallas and FTW housing has dropped over 20%--that is just not the truth...maybe in selected subdivision or some houses...

It says homes in Dallas and FTW are undervalued by 20% suggesting they should appreciate. Not that they lost value.

pills11.com )

[loves2read]

my bad--sorry

[tream]

COLLEGE STATION (Office of Federal Housing Enterprise Oversight, Real Estate Center) – According to recent figures from the Office of Federal Housing Enterprise Oversight, home prices in Texas increased 6.8 percent during first quarter 2007, well above the 4.3 percent national average.

“Despite the national slowdown, Texas is still strong,” said Dr. James Gaines, research economist with the Real Estate Center at Texas A&M University. “There’s no reason prices shouldn't continue to rise despite the increase in foreclosures and the slowdown in transactions, construction and new home starts.”

By comparison, home appreciation slowed to 1.2 percent in California and 3 percent in New York. Nevada price increases virtually disappeared at just .6 percent. Even rapidly growing Florida and Arizona reported value increases of 4.3 percent and 5.2 percent, respectively.

Within Texas, there is a wide variation in appreciation rates in the 25 metropolitan areas. Among the state’s large metro areas, Austin and San Antonio are seeing the strongest rate increases at more than 10 percent.

Meanwhile, the energy industry is fueling strong housing markets in some smaller metros. Home prices are up more than 21 percent in Midland and 16 percent in Odessa. Victoria prices are up 8.3 percent.

Some border communities are on fire as well, thanks to a surge in government hiring and business activity. Laredo is up 16.6 percent, while El Paso is up 11.2 percent.