April 03, 2005
What housing bubble?
By Jim Dallas
The econo-nerds have been going on about a housing bubble for quite a while now. But it's very selective -- indeed, almost all of the Texas home market is significantly undervalued (with San Antonio being at about par). Indeed, home prices in Beaumont are depressed as much as prices in New York City are inflated.
Granted, any hard-landing would be bad for all Americans. I'm curious, though, whether it will send prices here up, or down further.
(As someone who would like to be in the home-buying market in the next decade, this is starting to worry me. Will I be priced-out? or will I miss a chance to snatch up "once in a lifetime" property when it hits rock bottom?)
Posted by Jim Dallas at April 3, 2005 01:33 PM
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Jim, as a former homeowner in both Austin and SA, I think that old saying that goes 'location, location, location' is absolutely true.
Lived in San Antonio for more 8 years and saw almost 0% appreciation in my home. If the company had not bought it when I transferred, I could have actually lost money. On the other hand, if I had been living in Alamo Heights instead of NW San Antonio, I would have made a modest profit.
I wouldn't be terribly worried about being priced out of the market in Texas. The chart shows a bubble in CA, but not nearly as bad elsewhere.
