Texas Home Prices Overvalued, And Won't Be Decreasing Any Time Soon According to Real Estate Experts
The Greater Houston area is going to continue to see inflated home values for the foreseeable future according to a recent article on Fortune.com. CoreLogic, the California-based real estate research company, provided an assessment of 400 metropolitan areas including 5 Southeast Texas markets - Houston, The Woodlands, Sugarland, Beaumont, and Port Arthur.
Here's how they ranked for the odds of home prices dropping over the coming year:
Houston, The Woodlands, and Sugarland ranked very low. That's a 0-10% chance. Beaumont, and Port Arthur ranked low. That's a 10-20% chance.
For how CoreLogic rates home prices in America's largest housing markets, all five cities were categorized as overvalued.
"We reached out to Texas mortgage expert, Shelly Jo Carpenter from Ticket Mortgage and she said, "Looks like the home prices in Houston won't be falling anytime soon. And, with the rates rising 1.5% so far this year, the need for about two million homes to catch up with demand in the US, and around 3800 people a week moving to Texas, we can expect prices to continue to rise, though possibly slower than in the past.
This may help affordability in the coming years. Rates staying higher than the last couple years can give builders some time to catch up to the demand. I strongly advise any clients to consider what they may miss out on by continuing to wait. You can never get back missed appreciation on homes if prices do continue to rise."
"Having worked at the Tax Office and CAD prior to Real Estate, my opinion is that this will affect the pricing more than predicted. It is already starting to affect buying power for those trying to stay on budget. Homes have also been overpriced in the last few years due to supply and demand, and are noticeably reflecting that in the property tax assessments. This is causing homeowners to really feel the effect when paying their taxes. I believe a shift is coming if we don't get a balance to the market, rate relief, and eventually tax relief too. Because they all go hand in hand in overall affordability.", Jessica Banis from REMAX American Dream told us when we asked her about this report.
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