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:
Percentage of Active Listings that have taken Price Reductions in the most recent 90-day period: Austin MSA, Houston MSA, Dallas MSA & Altos 20-City Composite
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.)
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Thank you, Scott! I Posted this to the Real Estate Appraiser Tips Facebook Page. I wish you covered Baton Rouge….I know you cover New Orleans, but it's not remotely comparable. Thanks Again, Bill Cobb, Appraiser
Hi Bill – Good news! We DO cover Baton Rouge. I'll have Kristin drop you a line to show you the data for that metro. Thanks for reading.
I'm up in Minneapolis, however, I have a colleague that sold his home in Austin 10 months ago and mentioned how the market down there was remarkably stable. I was in disbelief until I looked more into it myself. Texas really has faired well "so far" through this bumpy real estate climate.
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