Friday, December 4, 2009

Are Homes in San Antonio Overpriced?

Are homes in San Antonio, Tx overpriced?  They are, according to an article yesterday from Forbes magazine, "Cities with the Most Overpriced Properties". 

According to Forbes, home owners in some parts of the country have clung tenaciously to their notions of the value of their homes, despite having no luck selling their properties.  Markets were ranked based on the ratio of the median initial list prices compared to the median list prices when the properties actually sold.  Also considered was how long the properties stayed on the market.  And finally, Forbes considered expert forecasts of price increases which were encouraging home owners to price their homes high.

The top 10 areas Forbes found with the most over-priced properties were:
  1. Orlando, Fla
  2. Miami - Ft. Lauderdale - Pompano Beach, Fla
  3. Jacksonville, Fla
  4. Baltimore - Towson, Md
  5. Chicago - Naperville - Joliet, Il
  7. Denver - Aurora, CO
  8. Tampa - St. Petersburg - Clearwater, Fla
  9. Indianapolis - Carmel, Indiana
  10. Austin - Round Rock, Tx
My take on this?  We do have a LOT of homes on the market in San Antonio.  Do I think a lot of them are over-priced?  Not really.  The market in San Antonio has only seen modest gains in the last 5 to 10 years, and our housing is already inexpensive compared to a large part of this country.  Should we expect to see prices come down in the near future?  I hope not, because that would wipe out the modest equity many people have in their homes.  San Antonio has a good solid economy, and our future looks bright!  Perhaps Forbes magazine needs to take a closer look.

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