Houston Housing Market Overvalued, Report Says

As of June the median price for a single-family home in Houston is $239,000.

Houston’s real estate market is on an unsustainable path, according to a report by CoreLogic.

The real estate analytics firm lists Greater Houston among four U.S. metros with overvalued housing markets.

Jim Gaines, chief economist for Texas A&M University’s Real Estate Center, is not entirely sure.

“It implies that the values are so high, they’ve gone up so high, that there’s going to be a major downward correction or something in the future,” he said. “Which may or may not happen.”

According to the Houston Association of Realtors, the median price for a single-family home in Houston was $239,000 in June. That’s about $9,000 more than a year prior and $80,000 more than in June of 2010.

Gaines said it’s a simple matter of supply and demand.

“The home construction market has not been able to keep pace,” he said. “We just simply haven’t built enough to keep pace with the level of growth that we’ve had.”

To slow the trend, developers need to build more homes, Gaines said, which would also benefit the job economy.

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