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College Station number 6 on nationwide list of towns with falling home prices

nought
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Too bad no one told the local tax office about this:

https://www.chron.com/realestate/article/Home-Prices-Aren-t-Soaring-Everywhere-These-Are-12950194.php?ipid=hpctp
Slocum on a mobile
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It may be falling in the $300k plus price range. But try listing a house around $200k and watch it get snapped up. Our neighbors across the way just sold their 3 Br 2.5 bath for $189,900, it was on the market for maybe a week.
02skiag
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The article talks specifically about properties geared towards students. I'm not sure about properties for sale but I know folks are having some trouble filling up rentals.
AggiePlaya
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The article paints a very misleading picture. Home prices have stalled in some segments where people tried to increase listing prices after a big rise in prices had already occurred.

Some segments (<200k) are still flying off the shelves, so no drop there for sure.

The rental market has seen a drop, but the statement by this Jeff Leatherwood generalized it like the whole resale market is crashing and that is just not the case for resale which is not the same as rental.

All in all, a pathetic picture painted by this article
MiMi
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[We aren't going to let that argument get started. -Staff]
Aggie
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Falling home prices because everything in CS right now is way way overpriced.

1600- 1800 Sq foot Homes built 30 years ago listing for over 300k lol
New homes worth around 250k in reality , appraised (for now) for 350-400k

It will come down soon enough
LOYAL AG
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Aggie said:

Falling home prices because everything in CS right now is way way overpriced.

It will come down soon enough

Quote:

1600- 1800 Sq foot Homes built 30 years ago listing for over 300k lol


This is correct.



Quote:

New homes worth around 250k in reality , appraised (for now) for 350-400k



This really is not. There aren't any builders making that kind of margin. There are some that are outpricing the market but that's not the norm. Reality is that material costs are soaring and the labor market is as tight as ever. Steel costs are up 20% since January and soft lumber is up close to that amount. Those are the things driving the cost of a new home, not the efforts of a builder to mark up the price $100K or more.

What is going to have a substantial impact on home prices in rising interest rates. The long time builders and subs in the area will tell you that 20 years ago when a mortgage cost 8% the average "nice" home was 2000 SF. Today it's 2800 SF with higher end finish out like double crown, granite, etc. That extra SF is possible because lower rates mean the mortgage payment doesn't go up despite the higher direct cost. As rates rise and interest costs rise that's going to force houses to get smaller and for finish out to retreat.
1.618
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I'm not sure that a 3% decrease in home prices constitutes a crash.


The article states:

College Station, about an hour and a half north of Houston and nearly three hours south of Dallas, is best known as the home of Texas A&M University and more than 68,000 students. But these Aggie football fans got a little carried away on their latest housing boom, putting up too many new residences. As a result there are more homes for sale than buyers to scoop them up. Hence, the discounts.
"To be blunt, the housing market is crashing right now," says Jeff Leatherwood, a broker at Aggieland Properties. "Properties built for the purposes of student housing are just overbuilt. We are a huge college town, and most of our market is rental properties."
This overabundance of housing, particularly homes aimed at students, could get worse before it gets better, local professionals fear. The verdict will become clear once the school year starts up again.
"There is an air of doom and gloom," Leatherwood says. "When the school year starts again in September, homes [that didn't get student renters] will flood the market."
EastSideLowlife
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Funny how local realtors are quoted talking our market down, I guess 3% of $400k or $375k is not that much money out of their pocket. Most self serving industry on earth.
Rapier108
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And yet Ag shacks are still popping up at an insane rate.

Heck, I get a letter almost every month asking me to sell my house (next door neighbor does too) because the guy wants the two lots so he can put up 3 Ag shacks. He even offers us well above the market value, but neither of us will sell it to him so he can ruin the neighborhood.
AggiePlaya
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EastSideLowlife said:

Funny how local realtors are quoted talking our market down, I guess 3% of $400k or $375k is not that much money out of their pocket. Most self serving industry on earth.

The realtor who made the comment seemed to generalize the market in much the same way you are generalizing that all realtors locally share his opinion.

Guess what? I don't know any local realtors that believ the market has crashed. This one probably meant his statement in regards to just the rental market but he poorly worded the statement so it sounds like the overall market.
LOYAL AG
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What the realtor meant is that the sales pace has slowed WAY down.
WheelinAg
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Rapier108 said:

And yet Ag shacks are still popping up at an insane rate.

Heck, I get a letter almost every month asking me to sell my house (next door neighbor does too) because the guy wants the two lots so he can put up 3 Ag shacks. He even offers us well above the market value, but neither of us will sell it to him so he can ruin the neighborhood.
Where are you located? My old hood, near the municipal golf course, has 3 lots that were bulldozed 1.5 years ago. I think they were supposed to contain a total of 12 Ag shacks.

Another house that just went up for sale that could be divided into 3 lots hasn't had any hits on it in the month it's been on the market. 3 years ago there would have been a price war over it.
threecatcorner
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Thank you (and your neighbor) for not selling to the guy that wants to put up more Agshacks.
AGnCS
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http://www.standard.net/Business/2018/06/07/Texas-A-M-Oklahoma-luxury-dorms-stumble-amid-sticker-shock.html
CS78
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AGnCS said:

http://www.standard.net/Business/2018/06/07/Texas-A-M-Oklahoma-luxury-dorms-stumble-amid-sticker-shock.html
Good article. The crazy thing is every average joe involved in B/CS real estate could see this coming for about four years now. Absolutely no surprise to anyone that was paying attention. It's like the big dogs financing these projects get a bad case of shiny object syndrome and don't even look around.

My big worry is if things get bad enough, A&M will wave their wand and require all incoming students to live on campus. Student leasing in this town could take a decade or more to recoup.
wareagle044
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Between A&M, Rellis and Blinn campuses --- there will be about 110,000 students in this town in the near future. Go buy some of those properties that people will be unloading on the cheap and wait for the demand to return.
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