With the rapid appreciation of home prices in Austin, Texas, some may be asking: Is it too much, too quickly? The Real Estate Center at Texas A&M University says no. A study of home values showed “neither the state of Texas nor any of its 25 MSAs (metropolitan statistical areas) currently are experiencing episodes of explosive behavior in house prices.”
The reason for this? Home value appreciation in Texas has been based on housing market fundamentals, such as demand and supply, rather than on consumer expectation. The report also claims that while some factors are shared with residential real estate markets regardless of location, Texas and the United States have had dissimilar experiences over the past 40 years in regards to housing markets.
Read the full report, Curb Your Enthusiasm: Keeping an Eye on Home Prices.