An interesting article last week by ABCNews discusses how Texas avoided the housing crash due to stricter mortgage and lending laws. But, while Texas mostly avoided the bubble and the burst, more recent analysis on the current market suggests that it might be prudent to hold back on using past tense with respect to “escaping” the housing crisis.
Not to say Texas is going to turn into the Miami Condo market, but price reductions are elevated in Austin, Dallas, and Houston, and exceed national figures:
Active market price reductions are an excellent demand indicator – sellers only reduce their price when they are seeing very little to no activity on their home. Yes, of course, some sellers do overprice by way too much, but in aggregate, agents and sellers traditionally price their homes on recent comps, and perhaps didn’t expect the rapid deterioration that we’re seeing in Q3 and Q4. Besides, most sellers in a weak environment aren’t out to test the waters – they’re on the market for a reason. And what we’re seeing in Texas right now are pretty significant price reductions.
(Tip of the hat to HousingWire for leading me to the ABCNews article.)