I'm not sure how "undervalued" we are at this point when you factor in property taxes, insurance/transportation costs, etc.
Not trying to be rude, but where else have you lived?Diggity said:
I'm not sure how "undervalued" we are at this point when you factor in property taxes, insurance/transportation costs, etc.
Fair enough.Diggity said:
The thriving hotbed of Omaha, NE count?
My point is that a "nice" new house in suburban parts of Houston starts around $500K these days. Throw in 3.5% property taxes, HOA, insurance,etc. and you realize it ain't near as cheap to live in Houston as it used to be.
If that is "undervalued", I would like to know what the true cost to live in the middle of nowhere should be?
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Agreed with the last sentence, but they have been doing that in other parts of the country for decades.Diggity said:
I've always heard homeowners insurance in the gulf coast is some of the most expensive in the country. Auto insurance also up there.
You also have to compare average income amongst the major cities if you have an apples to apples comparison.
I think many folks are stretching to their limits right now to afford home prices, so I have trouble seeing how that makes us "undervalued"
I bleed maroon said:
Just some general commentary - -
% of asking price is a majorly flawed metric. It assumes that every property is priced using a perfect system of comps, appraisals, and true market value. In reality, you can ask whatever you want for a property - in prior "soft" markets, I have personally listed properties for 15-20% over what a realtor assured me was a "proper" listing price before (and got offers much closer to my price), and I have seen listings at well below market value to stimulate a bidding frenzy. It has become fashionable in the current market to use this as a metric (mostly promoted by realtors to get their clients to jump (too?) quickly on a property, IMHO). FOMO is a very real danger in the real estate market, just like the stock market.
That said, the market is overheated, and many of the factors have already been stated above. It WILL cool off, with the primary drivers being increased mortgage interest rates, supply chain improvements in building materials, reopening of the economy, etc. Texas real estate has lagged other regions for quite a while, IMHO, and some catch-up was inevitable, given how our economy is booming. This too will cool off (just wait till the new tax valuations catch up next year).
All I'm saying is don't let yourself get talked into overpaying due to emotions. A few days ago, I personally just bought a piece of raw land just outside Austin in a very "hot" area, and paid 4% less than asking price, for whatever that's worth.
agsalaska said:Agreed with the last sentence, but they have been doing that in other parts of the country for decades.Diggity said:
I've always heard homeowners insurance in the gulf coast is some of the most expensive in the country. Auto insurance also up there.
You also have to compare average income amongst the major cities if you have an apples to apples comparison.
I think many folks are stretching to their limits right now to afford home prices, so I have trouble seeing how that makes us "undervalued"
I don't think, once you take everything into consideration, that doubling the home values in the major metro areas in Texas would make it a more expensive place to live than most of the major population centers in the US. That's why I think it is undervalued.
NTXAg10 said:
Hypothetical here... say you have two houses with equal updates, year built, condition, and sqft(~3,900). Same neighborhood in a north Dallas suburb. The only difference is that house 1 is on .18 acres and house 2 is on .29 acres(corner lot).
House 1 sold in Feb 2021. Is it reasonable, based on current market conditions and the extra .11 acres, to pay 8% more than what house 1 sold for for house 2 today?
We're in the $600-700k ballpark.
Just to be clarify I never used the word "undervalued"Diggity said:
I'm not sure how "undervalued" we are at this point when you factor in property taxes, insurance/transportation costs, etc.
probably should have quoted Alaska.gvine07 said:Just to be clarify I never used the word "undervalued"Diggity said:
I'm not sure how "undervalued" we are at this point when you factor in property taxes, insurance/transportation costs, etc.
Do you think it's overvalued? A bubble that's going to pop?