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Old 12-03-2017, 05:54 PM
 
1,514 posts, read 891,633 times
Reputation: 1961

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Bad news for those of us in the market to buy a home:
https://www.forbes.com/sites/samanth.../#10d8a80c3906

As of 2017:

"San Antonio homes are overvalued by 18.6%, the most of any market in America."

The homes here in San Antonio are not just the most over valued in Texas but it is the most overvalued market in all of America.

"Home prices are just growing too fast compared to the fundamentals."

The article states: "Home buyers need not avoid these five markets entirely, but they should proceed with care."

I have been in the market for a home for about 2 years now and this would explain what I am seeing. Things like:
Submitting a bid on a home for the asking price only to get immediately outbid.
Homes in bad, poor or decent shape where the sellers are asking a lot more then it is worth, and in most cases getting what they are asking for because of investors intent on flipping or renting the house.
Realtors getting impatient and and expecting purchases within 3-6 months or they become disgruntled and may drop you.

As of the years 2016 and 2017, it is a bad time to be a home buyer in San Antonio right now. Unfortunately, this trend is projected to continue for the foreseeable future.
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Old 12-03-2017, 06:03 PM
 
Location: Austin, TX via San Antonio, TX
9,853 posts, read 13,706,729 times
Reputation: 5702
Posted this right after it was published. //www.city-data.com/forum/san-a...anked-1-a.html
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Old 12-03-2017, 07:29 PM
 
Location: USA
4,437 posts, read 5,351,842 times
Reputation: 4127
It’s not.

If our growth rate was slow I’d agree.
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Old 12-03-2017, 07:36 PM
 
3,950 posts, read 3,011,139 times
Reputation: 3803
and they are still way cheaper than other cities with similar populations
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Old 12-03-2017, 08:47 PM
 
349 posts, read 422,392 times
Reputation: 297
Quote:
Originally Posted by txbullsfan View Post
Bad news for those of us in the market to buy a home:
https://www.forbes.com/sites/samanth.../#10d8a80c3906

As of 2017:

"San Antonio homes are overvalued by 18.6%, the most of any market in America."

The homes here in San Antonio are not just the most over valued in Texas but it is the most overvalued market in all of America.

"Home prices are just growing too fast compared to the fundamentals."

The article states: "Home buyers need not avoid these five markets entirely, but they should proceed with care."

I have been in the market for a home for about 2 years now and this would explain what I am seeing. Things like:
Submitting a bid on a home for the asking price only to get immediately outbid.
Homes in bad, poor or decent shape where the sellers are asking a lot more then it is worth, and in most cases getting what they are asking for because of investors intent on flipping or renting the house.
Realtors getting impatient and and expecting purchases within 3-6 months or they become disgruntled and may drop you.

As of the years 2016 and 2017, it is a bad time to be a home buyer in San Antonio right now. Unfortunately, this trend is projected to continue for the foreseeable future.

If the trend is continuing then it is simply 'market value'.
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Old 12-04-2017, 01:44 AM
 
814 posts, read 677,154 times
Reputation: 537
They must have left Seattle out of the mix for the article.
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Old 12-04-2017, 07:09 AM
 
6,707 posts, read 8,783,124 times
Reputation: 4866
I believe the article.

There is a house on the same street as me that is currently for sale that is clearly not worth even 300K and it was listed over that amount. It sold within days for full price. It couldn't even sell for $260K a few years ago.
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Old 12-04-2017, 07:46 AM
 
Location: New Braunfels, TX
7,130 posts, read 11,841,916 times
Reputation: 8043
A few years ago, there was a glut of homes with desperate sellers. As predicted, they have been absorbed by the market. Now there's a shortage, plus we didn't rebound as quickly as other markets did - so there's SOME catching up being done. Home prices are going to continue to have upward pressure on their prices, IMO, for the next several years barring some major employer leaving SA.
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Old 12-04-2017, 08:48 AM
 
Location: Texas
5,717 posts, read 18,935,079 times
Reputation: 11226
Yeah, homes values are at an all time high. I'll bet the folks downtown are counting the tax dollars with great smiles on their faces. It's getting to where you almost can't afford a home anymore due to taxes and insurance. I'd hate to have to own a home and live on Social Security alone. You won't make it. The next 3 months will tell the tale on housing here. I think you'll find the surge of imports into Texas is going to slow down considerably after the first of the year. That should put the skids on the rise of values but I doubt you'll see any reduction in values. I'd hate to be in the flipper industry today. You're going to have a lot of high priced homes on hand that the rents are not going to cover the costs involved. I've already seen the numbers on a few that were a losing deal and the houses needed little work to bring them online. Shoulda been a slam dunk but the rent just isn't there. The numbers aren't there to clear any kind of profit both today and future unless you're in the position to hang on to it for maybe a decade. Trading dollars in the rental business means you're losing money. If I were flipping houses for a living, I'd be looking at Michigan. You wouldn't believe the houses you can buy there for under 50 grand. Some are HUGE old museum quality homes too. The wife and I have several in Lansing where values are next to nothing but rents are decent. You can get into it in Michigan for a measly 40 grand and have an income close to a grand a month, less any expenses.
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Old 12-04-2017, 04:57 PM
 
Location: San Antonio
490 posts, read 1,095,237 times
Reputation: 415
Home values growing faster than incomes doesn't mean property values are over inflated, it just means homes are becoming less affordable. This might not be good, but when you start with a relatively high level of affordability, I have to think it's less significant than in an already un-affordable market.

In other words, a house isn't overvalued if someone's willing to buy it at the higher price...even if that cost of that higher price is an increasing percentage of their income.
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