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National home prices simmer; Texas comparisonNational home prices simmer; Texas comparisonhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=57232013-11-14T13:33:00Z2013-11-14T09:00:00Z

TEXAS - Austin, Houston, San Antonio and Dallas are all among the major cities that the Trulia researchers say are becoming overheated with housing prices that are ahead of market fundamentals.

Only 16 of the 100 U.S. cities that Trulia tracks for its “bubble watch” report are considered overvalued. Nationally, home prices are 4 percent undervalued in fourth quarter 2013, which means nationally, we’re nowhere near another housing bubble, according to the report.

The worst is Orange County in southern California where home prices are 13 percent ahead of where they should be, Trulia estimates.

Austin is the most overheated Texas market with a 10 percent price bubble.

Dr. James Gaines, an economist with the Real Estate Center at Texas A&M University, says that concerns about a price bubble in Texas' housing markets are overblown. He said some of the recent increases are just making up for several years in the recession when Texas home prices were declining or flat.

"They may have a point in some small pockets, but overall, I think they are premature," Gaines said. "I think things will slow down — the rates of increase — next year, so it is something of a wait and see."

Metro Home prices
relative to
fundamentals
4Q 2013
Asking prices
Y-O-Y change
Oct. 2013
Selected Metros Measured by Trulia
Orange County, Calif. 13% 23.4%
Los Angeles, Calif. 12% 22.5%
Austin 10% 11.7%
Oakland, Calif. 7% 29.6%
Riverside-San Bernardino
Calif.
7% 26.9%
Houston 6% 13.9%
San Jose, Calif. 6% 19.1%
San Francisco, Calif. 5% 15.6%
Honolulu, HI 5% 2.9%
Dallas 4% 13.9%
San Antonio 4% 11.1%
Fort Worth -1% 12.0%
El Paso -7% 0.5%

For the full report, download the Excel or PDF on Trulia's page.

Read more at the Dallas Morning News.

Online news
Dallas-Fort Worth-Arlington
Housing
http://trends.truliablog.com/2013/11/bubble-watch-nov-2013/Read more at {Source}

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