This may provide ammunition to fed-up Bexar County homeowners who just received property valuation notices showing their property is skyrocketing in value. Economists at the Federal Reserve Bank of Dallas say Texas housing prices are becoming 'overvalued,' News Radio 1200 WOAI reports
.Economist Anil Kumar compared the latest property valuations and sales prices for Texas homes with the factors that usually determine property values, like economic and income growth, and he says they just don't add up.
"What we may see if some deceleration in house price growth going forward," Kumar concluded.
He says while Texas is growing moderately, in many areas the state's growth has fallen behind national averages, which doesn't support the sorts of housing price valuations we have seen lately.
"House prices continue to rise in Texas," Kumar said, "and an examination of data suggests that homes may be overvalued relative to key economic fundamentals. Texas house prices have been growing faster than the nation and we have seen strong house price increases in the last few years. That has given rise to concerns of home affordability and overheated housing markets."
Kumar doesn't expect a 'late eighties style' housing crash, where housing prices brought down several prominent savings and loans, but he does expect to see moderating prices.
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