First-quarter price increases/decreases by metro area (Houston, Dallas: real estate, hotel)

[socketz]

Home prices by city - MSN Money

Our state is doing well....stable with Houston and Austin beating us out.

Dallas-Plano-Irving, TX
155 (Rank)
0.37 (Q107)
3.67 (1 Year)
17.21 (5 year)

Houston-Sugar Land-Baytown, TX
84 (Rank)
1.53 (Q107)
5.93 (1 Year)
26.38 (5 Year)

Austin-Round Rock, TX
26 (Q107)
2.57 (Q107)
10.94 (1 Year)
25.7 (5 Year)

Then we'll look out west....

San Diego-Carlsbad-San Marcos, CA
263 (Rank)
-1.12 (Q107)
-1.93 (1 Year)
83.48 (5 Year)

Las Vegas-Paradise, NV
205 (Rank)
-0.41 (Q107)
1.69 (1 Year)
99.95 (5 Year)

[lh_newbie]

Yeah, saw those numbers the other day. I'll take slow appreciation over depreciation anyday.

Incidentally, I do believe these numbers are for existing homes, so it does exclude teardowns and new construction, which is a much better measure of true appreciation.

[socketz]

So Newbie, why are you skeptical towards either teardowns and new construction adding value to the median cost ?

It seems that in some areas if new construction goes up in price then it pulls with it the values of the surrounding resale. Rebuilds obviously work in a similar manner.

[Roma]

Hi Socket,

Are the home prices for the 5 year, say Las Vegas, suppose to appreciate 99.95% (5 Year)?
Is that what that means under the 5 year?

Thanks, Roma

[socketz]

No, it means they have appreciated that much in 5 years.

So if you bought a home for 100k 5 years ago, it's norw worth 200k (approx.)

That's even better than CA. The biggest dfference is I know why people move to CA, have no idea why anyone would want to live in LV.

If lower cost housing was the goal, TX is MUCH nicer.

[Lakewooder]

I better show this to DCAD when I go to protest my appraisals that they have at 150% over 5 years.

[socketz]

I think if your buying in areas that are rebuilding, the potential upside is much greater (risk is also greater). San Diego where I came from has some areas that 5 years ago you could not pay people to live there that are now running $350 a sq/ft. Little restored 1950s Ranch style homes. Bars on the windows.

[lh_newbie]

Originally Posted by socketz

So Newbie, why are you skeptical towards either teardowns and new construction adding value to the median cost ?

It seems that in some areas if new construction goes up in price then it pulls with it the values of the surrounding resale. Rebuilds obviously work in a similar manner.

It's just a statistical thing.

If I live on a street that has three lots - one that's in not-so-good shape (teardown candidate), one empty lot and my home that's in good shape - and someone takes a $100K lot and plops down a $1M home - then someone buys the teardown for $200K and puts up a $1M home in it's place, does that mean that since the taxable values went up 10x and 5x, respectively, that my home is now worth 7.5x more? Nope. It'll probably go up, but obviously not that much.

I like to break out existing homes -vs- new builds in statistical data that relates to appreciation since they are two distinct entities that have very little affect on the other.

Brian

[socketz]

It seems that the laws of progression would adjust the value of your lot upward if the surrounding areas adjust dramatically. Maybe not the same amount, but a large percentage. It worked this way in CA. Maybe TX is different. Real Estate is very local.

[zachahuy]

Originally Posted by socketz

No, it means they have appreciated that much in 5 years.

So if you bought a home for 100k 5 years ago, it's norw worth 200k (approx.)

That's even better than CA. The biggest dfference is I know why people move to CA, have no idea why anyone would want to live in LV.

If lower cost housing was the goal, TX is MUCH nicer.

I think they moved there to live a professional gambling life. Think of this. You go there and buy a house so you dont have to pay for daily hotel. On top of that, with the extra money you saved from hotel..you can gamble that and get a bigger chance of winning. If you win 1 million at LV, you can payoff the house and have enough salary to live there for 5 years.

Thank God I am moving to Dallas.