San Antonio's Housing Market Ranked # 1 Overvalued market (Houston, Dallas: 2014, new home)

[ashbeeigh]

The Most Overvalued Housing Markets In America Are In Texas

The CoreLogic Case-Shiller Home Price Index for San Antonio gained 7.8% year-over-year, compared to a 3.7% gain nationally. As a result, San Antonio homes are overvalued by 18.6%, the most of any market in America, according to Fitch Ratings.

It's still cheaper than Austin, but there are houses in my family's neighborhood off of De Zavala and 10 going in the 220s where when I moved out in 2014 were in the 140s-160s. Yikes.

[TexasRedneck]

IMO, that "study" is flawed in more ways than one - you can't take a one, two or even 3-year span of housing prices and declare "overvalue". You have to look at historical prices, income and employment, as well as population growth and psf prices vs build costs.

If homes were undervalued for 5 years by an economy that starts turning around, you WILL see significant jumps in housing prices for several years - and that's part of the mix in SA (as it is in other areas of the country). Having said that, do I think I would want to be in the market to buy a house in SA *or* Austin right now? No - unless I planned to be in it for 10 years, because I DO think we're seeing spikes in housing prices (primarily of used homes) that WILL plateau for several years. I'm just not sure when that will occur.

[tejano2828]

You don't need an article or study to tell you that homes are overvalued in SA. They are overvalued because property taxes are overvaluing and there is NOTHING YOU CAN DO ABOUT IT.

[TexasRedneck]

Actually, they're not as bad as everyone is saying IMO. SA's long enjoyed a housing market that trailed well behind the national market. With the ever-increasing new folks moving it, it's created a shortage of homes - leading to a long-overdue uptick in values. Try pricing homes in Dallas or Houston - or Austin.

What kills me is the shrinking lot sizes. Many homes are on lots so small that you can barely park a vehicle on the street in front of it without blocking a driveway. We've gotten spoiled with out 120' wide yard here in New Braunfels! And we keep getting door knocks from Realtors wanting us to sell to someone they have that's looking for a place with a large yard.(we sit on almost a half acre)

[GEM-Texas]

I fail to understand the point even as I do understand the analysis. If you want to buy a new home in many parts of the country, the costs far exceed those of San Antonio. A case in point - KB Homes, I was in San Diego awhile back and picked up a KB pamphlet. KB is a lower cost builder. The same house that ran for $150K here was $550K there. Folks cannot live in these cities anymore.

[Azure110]

Originally Posted by tejano2828

you don't need an article or study to tell you that homes are overvalued in sa. They are overvalued because property taxes are overvaluing and there is nothing you can do about it.

x2.

[Azure110]

Originally Posted by TexasRedneck

Actually, they're not as bad as everyone is saying IMO. SA's long enjoyed a housing market that trailed well behind the national market. With the ever-increasing new folks moving it, it's created a shortage of homes - leading to a long-overdue uptick in values. Try pricing homes in Dallas or Houston - or Austin.

What kills me is the shrinking lot sizes. Many homes are on lots so small that you can barely park a vehicle on the street in front of it without blocking a driveway. We've gotten spoiled with out 120' wide yard here in New Braunfels! And we keep getting door knocks from Realtors wanting us to sell to someone they have that's looking for a place with a large yard.(we sit on almost a half acre)

Homes with large yards are going to become a premium in SA, if not already. How people can live in two story homes on postage stamp lots is beyond me. In some cases you can almost knock on the second story window of the next door house to ask your neighbor to borrow a cup of sugar or flour.

That being said, I think small lots are great for older people (or anyone really) who want nothing to do with yard work.

[TXEX06]

Originally Posted by TexasRedneck

What kills me is the shrinking lot sizes. Many homes are on lots so small that you can barely park a vehicle on the street in front of it without blocking a driveway. We've gotten spoiled with out 120' wide yard here in New Braunfels! And we keep getting door knocks from Realtors wanting us to sell to someone they have that's looking for a place with a large yard.(we sit on almost a half acre)

Just toured a beautiful almost half acre home on top a hill in Terrell Hill's today. Some of these mid-century modern lots are hard to beat. A lot of beautiful homes inside 1604 and 410 with beautiful lots and tall trees.

[TexasRedneck]

Originally Posted by TXEX06

Just toured a beautiful almost half acre home on top a hill in Terrell Hill's today. Some of these mid-century modern lots are hard to beat. A lot of beautiful homes inside 1604 and 410 with beautiful lots and tall trees.

Yeah - we love the older SA homes/neighborhoods. We just couldn't take the ongoing tax hikes and increasingly liberal ways of SA any longer. We've been looking around some even more outlying areas, but we love NB so much (and the thought of relocating all the "stuff" is a nightmare) that I doubt we'll do it.