I am happy to be moving back from KC to Houston, but sad to report that I bought a house in KC in 11-2007 to appease my lovely wife.

I hunched, though I had not yet discovered itulip, that real estate had been too happy for too long, and that I should not buy in KC at that time, though trouble had already started and we were getting a 'discount.'

I lost that marital battle.

The KC market is however a lesser bubble than many, and it looks like what was a $302,000 house with $40k in improvements, in 'the' most trendy inner city neighborhood might still be a $290-310k house.

Lots of showings, no offers.... not even low ballers, even though our house is probably in better condition and more movein ready than any of the others.

The burbs in KC however are suffering worse. If YRC, Sprint, the Rail and GM plants die it will be really rough.


Perhaps more interesting is the Houston market; it is still VERY proud of its inner city real estate, (probably a 2-5% INCREASE in prices since mid 2007) but there is a big secret to behold if you bike the city late at night, compared to online real propery searches:

Quick background: The old homes inside the loop are generally not for sale; when they are they are priced minimum $300k for a fifty year old 3-2 on a small lot in average shape; this is flat or even up from 2 years ago.

The nice neighborhoods run $550k and up for old houses.

The new McMansions are $900k+

These prices have not dropped yet; just a beginning of a slight slow down in closings.

Now back to the interesting thing: almost EVERY 'lotbox' (my term for a poorly built but 'fancy' 3 story dual condo erected on the grave of a formerly nice small pier and beam house - typically financed with an ARM and sold to yuppies for $400 - 650k) has a FOR SALE sign on it; and almost all of them are VACANT.

Hundreds and hundreds of them in one small section I have perused. Many are brand new, having never had a move in, and have chain link all the way around them.

And more interesting? They are NOT on har.com, houston's supposedly comprehensive real estate listing.

PS: I am still trying to convince my wife that we should NOT buy another friggin house right now in Houston!

Your comments welcome.