Comments on: Most Overpriced Housing Markets http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/ personal finance that makes cents Mon, 08 Sep 2008 00:28:55 +0000 http://wordpress.org/?v=2.5.1 By: Scotto http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-132364 Scotto Thu, 15 May 2008 01:06:04 +0000 http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-132364 I am surprised that GRS is stil (in May of '08) providing links to housing market stories that are almost two years old! Too much has happened since then. I am surprised that GRS is stil (in May of ‘08) providing links to housing market stories that are almost two years old! Too much has happened since then.

]]> By: Mattster http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-4297 Mattster Thu, 27 Jul 2006 14:43:04 +0000 http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-4297 The over/under valued thing in itself is spurious. "Over/under valued compared to what?" is the best question. You don't just pay for the building materials, that's pretty universal. You are paying for the land the damn thing sits on. You get a discount in El Paso because land is plentiful and no one wants to live there. You pay a premium in CA for desirability and scarcity. Concrete and stucco costs roughly the same everywhere. There is no such thing as overpriced land. It's relative to demand. The over/under valued thing in itself is spurious. “Over/under valued compared to what?” is the best question. You don’t just pay for the building materials, that’s pretty universal. You are paying for the land the damn thing sits on. You get a discount in El Paso because land is plentiful and no one wants to live there. You pay a premium in CA for desirability and scarcity. Concrete and stucco costs roughly the same everywhere. There is no such thing as overpriced land. It’s relative to demand.

]]> By: Andrew G http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-4294 Andrew G Thu, 27 Jul 2006 12:57:20 +0000 http://www.getrichslowly.org/blog/2006/07/26/most-overpriced-housing-markets/#comment-4294 I live in the Tampa/St. Petersburg area, an area which is rated as 33% overvalued. However, this is beginning to change. In the past few years, there has been a rush to convert local apartment complexes to condos. This has led to a sort of artificial housing shortage due to the number of apartments that were off the market during conversion. However, so many condo conversions have been done that the developers who started the projects are having a hard time selling the completed units; and some are even resorting to renting the units rather than attempting to sell them. This is beginning to drive down the cost of condos, which is in turn driving down the cost of housing overall. This is already being seen - houses are staying on the market much longer than they were a year ago, or even six months ago. So while I wait for the housing market to return to something resembling equilibrium, I'm living in an apartment and paying off my debts so that I can starting getting rich (slowly). I live in the Tampa/St. Petersburg area, an area which is rated as 33% overvalued. However, this is beginning to change. In the past few years, there has been a rush to convert local apartment complexes to condos. This has led to a sort of artificial housing shortage due to the number of apartments that were off the market during conversion. However, so many condo conversions have been done that the developers who started the projects are having a hard time selling the completed units; and some are even resorting to renting the units rather than attempting to sell them. This is beginning to drive down the cost of condos, which is in turn driving down the cost of housing overall. This is already being seen - houses are staying on the market much longer than they were a year ago, or even six months ago.

So while I wait for the housing market to return to something resembling equilibrium, I’m living in an apartment and paying off my debts so that I can starting getting rich (slowly).

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