Is Texas getting too hot?
Two metro areas in Texas, Austin and Houston, topped CoreLogic's list of markets that are seeing skyrocketing appreciation. The oil and gas boom there, along with rapid job and population growth, has pushed home prices above historical sustainable levels, according to CoreLogic.
Home prices in Austin are 22.8 percent above their historical peak levels, and in Houston, prices have broken that barrier by 16.2 percent.
Two other housing markets also at risk of being overvalued are Miami and Washington, D.C., which both saw prices rises significantly in 2013, making homes less affordable and future rises less sustainable, CoreLogic notes. However, those two markets remain down from their peak levels: Miami is still 30 percent below its historical peak level while D.C. is 13.1 percent below, according to CoreLogic.
Austin, Houston, Miami, and D.C. were the only four metros singled out as at risk of being overvalued in CoreLogic's list of the top 50 markets nationwide. Despite national home-price gains of 11 percent last year and 6.5 percent this year, the majority of housing markets overall are still in recovery mode. Most markets will likely continue to lag their long-term sustainable level through 2016, CoreLogic notes.
Source: “Find out Which Four Housing Markets CoreLogic Says Are Overvalued,” HousingWire (Oct. 20, 2014)
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