CoreLogic: Are Houston Home Prices Too High?

by James McClister


In September, single-family home prices, including distressed sales, jumped 6.4 percent year-over-year, according to CoreLogic.

For more than a year, national home prices have followed a steady, upward trajectory toward long-term stability. CoreLogic Chief Economist Sam Khater described the last 15 months of increases as “remarkably stable,” and added “home price volatility is now back to the long-term trend prior to the boom and bust.”

Houston home prices went up considerably in September, eclipsing the national pace and rising 7 percent year-over-year – 7.1 percent statewide. Increases in both the state and its biggest metro have been consistent and substantial, despite the drop in oil prices. However, many have argued Houston home prices are overvalued, which could bode poorly for the city if appreciation continues at its current pace.

CoreLogic President and CEO Anand Nallathambi warned about overvaluation in his statement accompanying the report.

“The continued growth in home prices is welcome news for many homeowners but more markets are becoming overvalued. In the near term, this trend is likely to continue and pose evaluated risks to the housing economy,” Nallathambi said. “More has to be done to expand inventories if we are going to address the emerging affordability crisis, especially in hot markets like California and Colorado.”


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