Houston’s residential property prices in June led it to become one of the overvalued home markets in the U.S., according to a report.
Denver, Miami and Washington D.C.’s home prices have steadily increased as well. That led to a shortage of affordable properties in these markets. Since March 2011, property values in these markets have surged almost 50%.
A report tagged the overvalued markets as those with prices that are 10% higher. That is, if compared with the long-term sustainable level. On the other hand, undervalued markets are those with prices on the opposite price spectrum.
Finding low-cost housing will become a bigger challenge for home buyers in the coming years. This is true despite low mortgage rates enabling affordable monthly payment rates, says a mortgage fraud lawyer in Houston. In the meantime, home prices are a common theme not just in the four overvalued markets, but also across the U.S.
Home prices nationwide rose 6.7% in June year over year and 1.1% compared with May, according to a forecast. Between June 2017 and June 2018, we can expect a 5.2% increase in U.S. home prices and a 0.6% growth from June to July 2017.
Sellers may think that is a good time to offload their properties. We must take note, however, that sales have slumped not because of surging prices. Instead, a shortage of available properties seems to be holding down property sales.
Salaries have failed to keep up with growth in the real estate values. As such, affordable housing will continue to be a relevant topic for many Americans. For those considering a home purchase, have you already found a market with low home prices?