It's all over the news these days that housing prices are exploding and we're heading toward a new housing "bubble."
It's true; prices are rising rapidly. When you look at the major Texas markets, the median sales price in Austin increased 18% this year. San Antonio saw a 19% increase, and in both Dallas and Houston, median sale prices increased 28%.
So should we be worried that we're heading toward a bubble? I don't believe so, and here's why:
It's true; prices are rising rapidly. When you look at the major Texas markets, the median sales price in Austin increased 18% this year. San Antonio saw a 19% increase, and in both Dallas and Houston, median sale prices increased 28%.
So should we be worried that we're heading toward a bubble? I don't believe so, and here's why:
- The New York Times reported this week that housing prices are still about 25% lower than their 2006 peak.
- The experts from the Real Estate Center at Texas A&M say that what we're currently witnessing is not a bubble, but rather a quick rebound from the low prices that were the result of the massive sell-off from a few years back (you can read more about this here).
- The recent rise in interest rates will serve to keep the markets from overheating.
After so many years of declines, let's enjoy this appreciation!
