Is Texas going through a Real Estate Bubble? My personal opinion is no, we are not. Take a look at the below graph.
What you see is the real estate pricing of property starting in 2007, when the experts say the recession "hit", through the second quarter of 2014. The Blue is the United States and the Red is Texas.
This graph almost doesn't need words, but I'll say some. As the rest of the country started to decline in 2007, Texas was still going up a little before leveling off. At the very end of 2008 into early 2009, Texas dropped slightly, but still above prices from 2007.
In 2010, Texas started to see some momentum, but I think that was just Obama money being spent, where homeowners received grant money, as there was a slight dip at the end of 2010 and into 2011. From there, Texas prices have steadily increased right along with the average of the U.S., we just started at a slightly higher starting value.
As you can see, Texas never sufered what the rest of the country did, and, for the most part, we stayed pretty steady. Even the couple of dips we did have were tiny compared to parts of the country losing more than half their value.
Can we sustain this momentum? Probably not. Texas has low unemployment rates, and Austin has even lower, but if wages don't increase in order for people to afford more, the pricing isn't going to be able to continue on its current path. Also, if rates go up, that will affect the pricing as well.
Contact me today if you would like further information about the Austin TX real estate market, and if you're looking to buy or sell a home.
**Are You Packed Yet?**
Donna Harris, REALTOR®
Donna Homes, Owner
Austin TX Real Estate and the surrounding areas of Lakeway, Bee Cave, West Lake Hills, Cedar Park, Round Rock, Steiner Ranch, Spicewood, Circle C, and everywhere in between… Hill Country Austin TX Real Estateand beyond.Whether you’re buying or selling an Austin TX Home, I’ll be with you every step of the way.
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*Texas is Not Experiencing a Bubble- Gradual Appreciation* was first published on donnahomesblog.com.