I purchased a home in College Station last year a 35% college town... I wanted a town home, but they were real pricey, because town homes were relatively new and less than 5 years old and condos were not much less.. We ended up paying 27% more for a single family home in a family neighborhood away from the University ( even though my kids are going to Texas A&M ) just so that in a downturn my property value would not plummet by 40%... During that time all new of relatively new properties by the University are overpriced, because they are set up as investment properties, but due to the surplus of rental supply, and individual student can pay $500 a month rent with utilities, the owner of investment property is loosing money, this is now putting a flood of rental homes on the market for sale, thus lowering the price of homes... In the meantime many apartments are setting half full... The areas itself only has 77% of available units rented....
I just don't see why people are willing to pay 30% more for a new house versus an existing one... My feeling is the 20 - 30 year olds buying homes don't truly understand the value of money or they are willing to take risks financially.
