Home depreciation around Eagle Mountain / Saginaw? (Southlake, Colleyville: real estate, foreclosures, 2nd mortgage)

[j0shg]

I'm still doing tons of research (thanks again everyone for all of the advice I have gotten by the way ) and one thing interesting I noticed was that it seemed like home values, at least as far as tax appraised values, seemed to have declined pretty significantly in the last 5-8 years in the Eagle Mountain / Saginaw areas.

Is this true? If so, does anyone know what this could be attributed to?

Really I'm trying to learn the root cause of this and if there is a high likelihood that the appraisal values in this area would continue to fall in the same manner. (read: is it a bad idea to buy right now?? )

Most homes that I check on the TAD site seemed to have dropped overall between 10-15% in these areas, but less than 5% in most other areas of Tarrant county where home values have fallen.

[naterator]

Are you referring to the older Lake Country area, or the newer (early 2000's and up) developments? If it's the latter, I would suggest that it's a function of two things: 1.) Foreclosures in the area, which seem to be depressing property values versus where they were a few years ago; and 2.) Being in a growing area with new subdivisions popping up. I mean, why would someone want to buy a used home for $150k with someone else's almost ten-year-old colors and appliances, when you can get a brand new home, just down the street, in your colors and options, for $135k? This phenomenon impedes home appreciation, IMHO. On the other hand, I've seen some considerable appreciation in Lake Country versus 5-10 years ago. This isn't through determinative research via TAD, but just what I've seen as far as asking prices on MLS.

[loves2read]

You also have to consider how the recession is taking a toll on some income levels than others--
blue collar, lower middle management seems to be sectors that are really hurting more than the self-employed entrepenuers or high dollar corporate execs--
the area you are referring to (in general) is not like Southlake or Colleyville--those areas might have seen small reduction in tax appraisals in certain areas but not significantly as large as what you seem to be referring to
I don't think anyone considering buying in Colleyville or Southlake is afraid that property values will continue to drop which signifies the bottom dropping out of desireability...

IF American is allowed to close its Alliance facility then there could be further drop in housing values in the Haslet/Saginaw areas--as sort of trickle down effect...
I know that not everyone working there lives in those areas but losing the AA maintenance facility is going to have negative effect in that area that spreads across the Metroplex

[j0shg]

Thank you both for the information, it very much makes sense to me.

Yes the homes I was looking at were between 2002-2007 ish time range

I'm assuming after development settles down and the AA situation shakes out they will probably begin to see a little more stability?

[loves2read]

only time will tell
it might be that area is just not that close to certain features that people desire or that the quality of home being built there does not create a stable neighborhood that keeps its desireability--even if the assessment/market value does not decrease

you have to consider the school district rating as well since most people buying homes do so because they have children and want the features of a SFR neighborhood vs apt living

personally unless you need that area for better commute or have other reasons (being close to family members/church) I would prefer the Mid-Cities area for several reasons--but there is relatively little new housing in that area...

[TxBrn&Raised]

I would definitely contribute it to the new home construction in the area. My subdivision is a perfect example of this. At the beginning of the development, we had two beautiful custom home designers building on our lots. We're talking 200k+ homes (which is alot for this area). The economy tanked, the builders stopped building, and eventually went bankrupt. A couple of years went by and those empty lots were purchased -at a discounted price- by very low end home builders. So now, we have 200K+ homes sitting next to 120K homes.

I wouldn't say to avoid buying in this area, I would say to be smart about it and do your homework, which it sounds like you already are We liked this particular subdivision and came so close to building a new home here, but found an exisiting home a street over. It was already a few years old and had nothing custom about it, but it was empty and had an owner who already had a 2nd mortgage out of state. With the new construction a street away, this home sat on the market and had 2 price reductions. Not because it was in bad condition, but because everyone wanted new and shiny. We got it for a steal, put those custom touches on it, and I think it's very safe to say, are probably one of the few who could put our's on the market today and walk away with a profit. You can still buy smart and it sounds like you are on your way Good luck!!!

[loves2read]

and that post highlights the idea of "knowing local real estate" before you make a buy
it takes time and effort--boots on the ground--so to speak
once you get idea of what the neighborhoods are like you can learn a good deal from just wantching/monitoring the MLS sites
but real investigation beats Internet every time for seeing the neighborhoods and gaining an impression first hand...

[atk305]

Thank you for these replies! I am moving to the Ft. Worth area soon ... I also looked at a few older homes in the Eagle Mountain Lake area and was wondering why the prices were lower than I expected them to be. Thanks again -

PKB