San Antonio still overvalued... (Houston, Georgetown: condo, townhouse, find a job)

[banker]

Originally Posted by scuba steve

I think the main factor in whether or not there will be a significant decline in housing prices is affordability. If people that live in an area can no longer attain financing to buy a house except by gimick loans (alt-A for the non-self employed, for example) then there will have to be a correction. Whether or not that's the case here, I'm not sure. But it doesn't seem to be.

Great point. Too many gimick loans were made over the past decade to "stimulate" demand. What that really did was bring people into the housing market that really couldn't afford the houses they were buying...and as this "stimulated" demand increased so did housing prices. Now we are seeing the result of that. I think the decline in house prices here in San Antonio is only beginning. I have seen what inventory homes have done in terms of prices and that shows that in general prices are off 10% where they were when many of these houses (mine included) were put under contract last year. I was lucky in that I sold my house in January for asking price at $100/foot. Today in the same neighborhood houses are languishing on the market at $80-85/foot. I am not too worried about the fact that the house I now live in is probably worth less than I paid because I sold my last house for top dollar and put a big down payment on my current house - 40% - so I owe less than it is worth even in a worst case scenario.

The sad thing is that the people that bought my house purchased it using an FHA loan with only 3% down. No doubt they owe much more than the house is worth today. Banks (and I work for one...so sadly I know) need to start requiring at least 10% downpayment on home purchases. It keeps the quality of the buyer higher (less likely to default) and keeps demand and prices in line with what people can really afford.

But as we are now seeing...when people no longer qualify for mortgages...housing demand drops and so do prices which agrevates the problem for people that did 100% or near 100% financing.

I now side with those that think our housing market - even in "recession proof" San Antonio - are headed for a decline. Home values will drop for the forseable future - until the supply/demand/price evens out. Right now - prices are too high for the qualified buyers and available credit.

It may be a rough ride ahead for us all...

[manthechange]

Originally Posted by rupers

Just providing you a perspective from someone who just arrived from Northern Virgina. Based on the inventory of new and existing homes on the market and the general availability of land around San Antonio, the price of homes (generally) is overpriced, but not by much considering square footage costs.

The city, county, and school taxes are high, even though you all don't have a state income tax like they have in Virginia. Just as an example, our home in No VA is appraised at about $480 thousand, and the real estate taxes are about $4400 per year. That provides schools (in Fairfax County) that are among the best public schools in the nation.

Fairfax County doesn't have much land available for further development, so the primary housing market is existing homes. Existing homes usually have basements (most are finished) and are in mature, well developed neighborhoods (70 ft high oaks, lots of neighborhoods with undergound electric/phone lines, and no septic sewer). A home that goes for $480 thousand there would likely sell for about $240 to 260 thousand here, but the land there has more inherent value. Median family income ranks among the highest in the nation (about $100 thousand). Having said all that, No VA is now seeing serious declining housing values. I believe San Antonio will see it, too (if it hasn't already seen the beginning already). The decline in No VA and Maryland suburbs for the DC area hit pretty suddenly. Wasn't due to lack of jobs -- job market there is still very strong, and they're generally high paying jobs.

I've been hawking home price values here, and some are very nice. However, for any home in San Antonio, especially those along 281 and north of 1604, they better be pretty special if they're listed for over $400 thousand. If not, they'll sit for quite a while, while the owners slowly drop their prices down in $10 thousand increments while the market gets slower. Like catching a falling knife. They better start dropping their asking prices a little more than that if they want a serious buyer.

Just my observations.

I think these observations are spot-on. From an outsiders view (especially when you figure taxes in) we are still very overvalued. I believe that the slowdown is just beginning to hit San Antonio, a year behind. That's about right, since we're a year or two behind every other trend in the country.

[texdav]

I think in comparing states you need to look beyond Taxes to all fees payed. I saw a program where they had done studies on all cost by taxes and fees in the country. Texas listed as Number 43 in Total cost of living.Those that listed lower had a very low median income . The major benefit to Texas is that many of the industires here pay taxes that are tranferred to consumers in other states.What you get in governamnt services needs also to be looked at buy who acutaully pays what;in many areas of Texas industry pays 80% of local budgets of many cities and counties.There is a reason that so mnay are moving here and that has alot to do with it as well as why companies are moving here. A large part of what is making housng in most of Texas stay very stable overall is the number of new buyers coming from out of state because of the job market and outlook for comng years.

[the_dimwit]

As someone who is also a recent transplant (or immigrant or refugee or <insert label here>) from Northern VA, I caution those who would rush to judge the SA area based upon property taxes alone.

Item: Fairfax, Loudoun, Prince William, and others have personal property taxes that are paid on just about anything with a motor and a steering wheel. The costs can be quite high if you drive anything worth more than 20k.

Item: VA has a state income tax. That's self-explanatory.

Item: VA fuel prices are higher (currently 4.09 near my hotel right now).

There are other items, but I think you get the idea. SA is cheaper in some areas, but a little more expensive in others. In the end, my wife and I have decided that the costs are pretty much a wash in many areas (taxes, transportation, food, etc.) while they are cheaper in others (housing, vehicles, etc.).

It really boils down to one's lifestyle--if you're frugal enough, your daughter will stretch more in SA. If not, then there's not much to say.

--Dim

[sapphire]

Originally Posted by the_dimwit

It really boils down to one's lifestyle--if you're frugal enough, your daughter will stretch more in SA. If not, then there's not much to say.

--Dim

I don't have a daughter. Just what the heck are you doing to that kid???

[scuba steve]

Originally Posted by sapphire

I don't have a daughter. Just what the heck are you doing to that kid???

It's got something to do with a red light district... trust me, from what I hear you don't want to know!

[sapphire]

Originally Posted by scuba steve

It's got something to do with a red light district... trust me, from what I hear you don't want to know!

LOL, I thought maybe he was married to Elastic Girl from the Incredibles, and their offspring inherited Mom's genes.

[Paka]

Go plug Cost of Living Comparison into Google and plug in the city you live in vs the city in question when trying to determine how it all breaks out....FACT is that it is 91% MORE expensive to live in Fairfax, VA and the breakdown is below. BIGGEST factor is housing. No state tax and paying more in home/school taxes are not the same animal. I only pay school taxes on the value of my property...state taxes on the income earned. Living below our means, I am MUCH better off to pay it on the value of our homes vs our income.

ShareThisCost of Living Comparison:
San Antonio, Texas - Fairfax, Virginia
Change cities
Fairfax is
91% more expensive than San Antonio.

Housing
is the biggest factor in the cost of living difference.

Housing is
344%
more expensive in Fairfax.
A salary of $100,000 in San Antonio, Texas should increase to $190,879 in Fairfax, Virginia

San Antonio U.S. Avg. Fairfax
Cost of Living Indexes San Antonio Fairfax
Overall 75 144
Food 87 111
Housing 47 207
Utilities 82 85
Transportation 90 113
Health 87 118
Miscellaneous 100 108
100=national average
» Compare these cities in over 100 categories

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[rupers]

Paka

Fairfax County encompasses several high priced areas (e.g., McLean, Fairfax Station) which really spike up the "average" (and I know San Antonio has some of those areas, too). You can "Google" the info you received, but I lived there from 1996 to 2008. We have a very nice home that was at the $500,000 range in value (still trying to sell it), and my wife and I, with our combined income, found the cost of living in Fairfax County as comfortable. Our combined income here in San Antonio won't rival our income in VA, because she has to find a job here, and it's pretty clear to us that she'll be lucky to earn half of what she earned there.

The commensurate decrease in family income we'll face will make it more difficult to live comfortably in a comparably priced home here.

As for personal property tax, it sounds terrible but in reality it was only about $350 per year for us (we didn't own any boats, so the only things taxed by the County's personal property tax were our autos). That was easily made up by the difference in car insurance premiums -- car insurance premiums in SATX are more expensive.

Having said all that (and I'm sure many posters are wondering why we just don't return to Virginia), we really look forward to living in SATX and think it is a vibrant, wonderful city. We want to avoid making a mistake in picking our future home here -- we intend to retire in SATX and want to ensure we'll be happy with the place we choose. We're not too worried about price appreciation since we don't intend to sell anytime in the near future. Besides, we hate the Washington Redskins and have always been avid Cowboy fans -- we loathed all the TV coverage in DC about the "Deadskins" and how they were going to spray a can of Whoop-Arse on the Cowboys.

What type of place are we looking for? 3 or 4 bedroom (expect an in-law or two to live with us for a while, possibly), 3 bathrooms, curb appeal, some mature trees, half acre to acre yard that has potential for gardening and locating a work shop, not too far in the boonies (my wife has a 10-minute rule -- if she wants to buy a six pack of Bud late at night, it shouldn't take more than 10 minutes to find a place where she can buy it (I guess that generally rules out Hays County, lol) -- nice kitchen, avoid septic if possible, nice views, and access to fiber optic comm lines (we got spoiled in our VA home with Verizon FIOS -- internet speed was unbelievable). Price range -- $350 to $ 500 thousand. Oh, and a house that doesn't look like a spitting image of the homes to our left and right.

I imagine a lot of folks who are relocating to SATX from Wash DC and MD and VA suburbs near DC are looking for something similar.

[ryneone]

Originally Posted by Paka

Go plug Cost of Living Comparison into Google and plug in the city you live in vs the city in question when trying to determine how it all breaks out....FACT is that it is 91% MORE expensive to live in Fairfax, VA and the breakdown is below. BIGGEST factor is housing. No state tax and paying more in home/school taxes are not the same animal. I only pay school taxes on the value of my property...state taxes on the income earned. Living below our means, I am MUCH better off to pay it on the value of our homes vs our income.

ShareThisCost of Living Comparison:
San Antonio, Texas - Fairfax, Virginia
Change cities
Fairfax is
91% more expensive than San Antonio.

Housing
is the biggest factor in the cost of living difference.

Housing is
344%
more expensive in Fairfax.
A salary of $100,000 in San Antonio, Texas should increase to $190,879 in Fairfax, Virginia

San Antonio U.S. Avg. Fairfax
Cost of Living Indexes San Antonio Fairfax
Overall 75 144
Food 87 111
Housing 47 207
Utilities 82 85
Transportation 90 113
Health 87 118
Miscellaneous 100 108
100=national average
» Compare these cities in over 100 categories

About Our Data About Sperling's Become a Partner Contact Copyright Disclaimer Privacy Policy Sponsorship Press Signup

Why did you do that????

Now they can't just post opinions as fact anymore. Shame on you.