According to Forbes Magazine in their July 19, 2017 article by Samantha Sharf “Texas is Home to the most Over Valued Housing Markets in America” the article states Austin housing is over-valued and a housing bubble may be on Austin’s horizon. KXAN ran the story the first of August which many of you may have seen:
According to Neal Spelce’s Austin Letter “a housing bubble implies a bursting of the bubble could have bad economic consequences.” It only makes sense we should not take these reports lightly but must delve into other sources that know and study the Austin market extensively to get the whole picture.
Texas A&M Real Estate Center looked into these “overvalued” reports and released preliminary results of research in their August 7, 2017 article: Is Something Wrong with Texas Home Prices by research economist, Dr. Louis Torres. He refers to the discrepancy in calculation as a “misalignment that suggests “recent price changes cannot be explained by supply and demand fundamentals alone.” It’s interesting he points out that the “misalignment” began in Austin in 2014. Torres says “there is no sure way of knowing what prices ‘should be’, even when considering supply and demand determinants, since they change over time. Even more difficult is determining with certainty the formation of housing bubbles.”
Torres observations looking back at conditions during the last bubble concluded they “seem not to be present currently in the Texas housing market or in the major Texas MSA’s which includes Austin.” He cautioned the lack of inventory is an issue. The Texas A & M Real Estate Center says they “will continue to monitor and analyze” this significant supply restraint and I will be eager to read their findings as we move through the third and fourth quarter of 2017.
The key word is “with certainty.” We can all make predictions but I don’t know about you but I can’t count on my crystal ball for accuracy. But what I can do as a real estate professional is keep my ears open and eyes on my resources, like Neal Spelce, The Texas A &M Real Estate Center and Independence Title State Director of Information Capital economist Mark Sprague to keep me informed of where Austin’s real estate is headed and what is happening to our home prices and why!
I’m listing and selling homes in the NW Austin real estate market on a daily basis. Being in the trenches daily I have a “feel” for what the market is doing. I’ve learned in this business the three AAA’s are important to help you be successful in this business: Anticipate Adapt and Adjust.
Are you planning on visiting Austin? I know you will love our city so if you are thinking of making Austin home, Let’s talk! If you live in Austin and are considering a move I can help. Remember hiring the right Austin Realtor® is critical to your home buying and selling success!!
Don’t forget to visit my website: www.reloaustin.com
 |
      
        Dorie Dillard is the most frequently hired REALTOR® in the Canyon Creek Subdivision. “YOUR PERFECT PARTNER”
|
Save
Save