According to the Daily Real Estate News, two metro areas in Texas—Austin and Houston—topped CoreLogic's list of real estate markets that are seeing skyrocketing appreciation.
The oil and gas boom there, along with rapid job and population growth, has pushed home prices above historical sustainable levels, according to CoreLogic. Home prices in Austin are 22.8 percent higher, and in Houston, prices have broken that sustainability barrier by 16.2 percent.
Two other housing markets also at risk of being overvalued are Miami and Washington, D.C., both of which saw prices rises significantly in 2013, making homes less affordable and future rises less sustainable, CoreLogic notes. However, those two markets remain down from their peak levels: Miami is still 30 percent below its historical peak level while D.C. is 13.1 percent below, according to CoreLogic.
Austin, Houston, Miami, and D.C. were the only four metros singled out as at risk of being overvalued in CoreLogic's list of the top 50 markets nationwide. Despite national average home-price gains of 11 percent last year and 6.5 percent so far this year, CoreLogic indicates that the majority of housing markets overall are still in recovery mode and most markets will likely continue to lag their long-term sustainable level through 2016.
In The Market Pulse for October 2014, CoreLogic indicated that:
- distressed home sales accounted for just 11 percent of total home sales in August of 2014—its lowest point since December 2007;
- completed foreclosures are down 22.2% from August 2013 to August 2014; and
- home prices are up 6.6% over the same time period.