According to a prominent real estate analytics firm, 4 of the top 10 overvalued real estate markets in the United States are in the state of Texas.
Austin leads the way as the most overvalued housing market in the country. Based on Austin’s income per capita, the home prices in Austin are 42.3 percent more than the sustainable rate. Over the past few years, Austin’s reputation and supply restrictions have steadily driven property value up.
Houston is the 2nd most overvalued real estate market in the Unites States. Based on the city’s income per capita, home prices are 25.4 percent more than the sustainable rate, which is significantly lower than Austin. Since Houston is on the coast and is one of the biggest cities in the country, it doesn’t face half as many constraint problems that Austin does.
Coming in at 8th on the list is Dallas. According to the report, home prices in Dallas are 14 percent more than the sustainable rate. However, the housing market prices in Dallas are driven by the fact that demand for housing in Dallas is significantly higher than the supply, due to the job growth that the city has experienced in recent years.
San Antonio comes in at number 9 on the list. The housing prices in San Antonio is just a hair lower than the rate in Dallas at 12.4 percent higher than the sustainable rate. Like the other three cities in the top 10, San Antonio also has to deal with constraint issues, which have driven the housing prices up.
Having four cities in the same state in the top 10 of overvalued housing markets shows Texas has a trend where the real estate in metropolitan cities seemingly move together more than other real estate markets across the country.
Looking at the big picture, the Texas real estate market is not a cause for concern because real estate prices are going up across the country. Since government agencies are keeping an eye on the situation, expect the government to swoop in if things go downhill.
If you are looking to sell Texas real estate contact us: https://www.wanttosellnow.com/