Houston home prices fall for first time in 14 yearsI like how Vicki and David are sitting in a park a mile west of downtown along Buffalo Bayou, and when they change the camera angle Vicki is instantly transported to Tranquility Park.
Housing values in nearly two-thirds of more than 2,000 Houston-area neighborhoods declined or stood still last year, according to an annual home price analysis commissioned by the Houston Chronicle.
Overall, the median price per square foot of a single-family home fell 2 percent in 2008 to $72.71, marking the first time it has dropped into negative territory in 14 years.
It's fun watching people who are totally oblivious to the fact that they have no clue. No bubble? Any high-rise condo or inner loop crapshack is bubbleized. Slap a trendy tin roof on it and add some granite countertops, that doesn't change the fact that many of these inner loop houses sold for 70, 80% less during the early 1990s. It wasn't so long ago that Washington Ave. was Ft. Apache. Gentrification will be a short-term phenomenon.
6 comments:
Washington Ave was never Ft. Apache. It looked run down, and there were lots of low end used car lots, but I never felt unsafe or threatened driving or walking there.
Some Inner Loop neighborhoods have the potential to slide back into mediocrity, but many of them are fine places to live, especially if you avoid the townhome developments. We've lived inside the Loop since 1995, before it was fashionable. I will say I'm not too thrilled with the 20% increase HCAD put on our market value, even if it does match reality.
Washington Ave was absolutely Ft. Apache. I witnessed it before you moved there in 1995 as it became trendy.
It's about time we have market price correction here. Inside the loop prices are not normal - HCAD now has a nice graph of 15 year values, and when you alook at any Bellaire "bungalo", the values stayed the same for years till 99-01, when the prices started going up,up, up. Bellaire prices shot up four-fold in the past 10 years, while average harris county prices went up only 50%. Even if you accept the 100% increase due to attractiveness of location, it still does not explain the price increase. The "bungalos" were going for mid 60-70k then, and after all price increases and such should go for 120-140k max, not 300-350k. Bubble gotta pop.
I think the stats prove that housing on average goes up at the rate of inflation....of course location matters, but average is average over long time periods. Houston has a lot of space.
On the other hand, if you think that inflation will kick in big time because of spending in DC, then hard assets finaced with cheap long term debt would be a good hedge...at some point. IMHO
Lou,
No offense to you personally but your local Realitters® sound like cargo cultists.
The "bungalos" were going for mid 60-70k then, and after all price increases and such should go for 120-140k max, not 300-350k. Bubble gotta pop.
Exactamundo. I am astounded at the wishing prices for these very modest houses.
No offense to you personally but your local Realitters® sound like cargo cultists.
Why would I take offense, Rob? They are the same everywhere.
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