San Antonio Express-News (Sunday)
OVERVALUED?
Skyline: Area homes are selling for 21 percent more than their historical value, study finds.
It’s tougher these days for homebuyers in the San Antonio area to get their money’s worth, but they’re still better off than their counterparts in Austin.
Professors at Florida Atlantic University and Florida International University recently examined the nation’s most overvalued housing markets based on current and past pricing trends. They ranked San Antonio 48th, with homes selling for 20.99 percent above anticipated prices based on long-term pricing patterns.
That was better than the situation in Austin, which the study found has the nation’s second-most overvalued residential real estate, with homes selling at a premium of 50.72 percent. It was better than Dallas-Fort Worth, too, which ranked 19th at a premium of 31.57 percent. Houston was 57th at 17.99 percent.
Homebuyers in the hottest markets are paying top dollar and could wind up having to hold onto their property for a while before they’re able to see a return, said Ken H. Johnson, a real estate economist and associate dean at FAU’s College of Business.
“In the top 10 markets, potential buyers might want to consider renting and reinvesting
money that they otherwise would have put into homeownership,” he said. “Renting and reinvesting has been shown to often outperform ownership in terms of wealth creation.”
Johnson and Eli Beracha of FIU’s Hollo School of Real Estate based their research on data from Zillow and other real estate companies from January 1996 through July 2021. Of the 100 metro areas they examined, 95 were overvalued to some extent.
They ranked Boise, Idaho, as the most overpriced city in the country, followed by Austin and Ogden, Utah.
Urban Honolulu, Virginia Beach and Baltimore landed in the last three slots.
New center for Rim owner
Big V Property Group is expanding its San Antonio holdings with the recent purchase of much of the Alamo Ranch shopping center on the far West
Side.
The Charlotte, N.C.-based company’s acquisition encompasses more than 60 acres at the shopping center, which includes Best Buy, Dick’s Sporting Goods, Ulta and J.C. Penney stores. Some retailers, such as Target and Lowe’s, own their stores there.
The purchase price was unclear, but Big V borrowed $70 million for the deal, deed records indicate. The shopping center at 5503 W. Loop 1604 N. was previously owned by ShopCore
Properties, an affiliate of private equity firm Blackstone.
Last winter, Big V bought much of the Rim shopping center on the Northwest Side for $219.7 million. Its properties are primarily located in the Southeast United States. The Rim was its first acquisition in Texas.
Complexes sold
Minneapolis-based NorthMarq recently purchased the 5Fifty Apartments complex near San Antonio International Airport for $22.75 million, according to an announcement by Austin-based seller Casoro Group.
The 204-unit complex at 550 Heimer Road was built in 1984. Casoro Group renovated it prior to the sale, which included upgrades to apartments, pools and parking facilities.
Moody National Cos. of Houston recently bought a 120-unit complex near the Pearl from a company affiliated with local attorney George W. Mauzé II, property records show.
The Mosaic on Broadway was built in 2012 and valued at $25.9 million this year by the Bexar Appraisal District. The purchase price is unclear, but Moody borrowed $15 million for the acquisition, deed records indicate.
VIDA project progressing
Construction is underway on VIDA, a 600-acre masterplanned community developed by New Braunfels-based SouthStar Communities on the South Side near Texas A&M UniversitySan Antonio.
Builders Lennar, Perry
Homes and Highland Homes are constructing 285 single-family homes for the project’s first phase.
Prices will start in the high $100,000s for smaller homes and the low $300,000s for bigger “move-up” homes, according to a recent announcement by SouthStar. Those homes are expected to be finished early next year.
VIDA will be built over 10 to 12 years, with its 4,000 residential units including single-family homes, apartments and student housing. Shops, restaurants, services, a pedestrian plaza for events and a greenway with trails, seating areas and public art also are part of the plan.