brsharma, by overvalued, I mean with a good chance of price drops.
If you mean fairly valued then I would agree.
It’s all supply and demand, and despite houses going for $100/sf in Indianapolis (cheap by SD standards) that area has some of the highest foreclosure rates in the nation. That means that prices are bound to drop.
My point was to avoid paying for something that will be worth less in a couple of years. The alternative of renting is always available.
I run a business and I’m renting the building. A broker called me trying to sell me a building. I told him no. Then he had the temerity to show up at my office uninvited. I told him that as long as the interest + tax + maintenance on a new building is more than my NNN lease, I’ll be renting.
People should do that cost analysis before buying.
