Boom or Bust: How the Exploding Housing Market in Houston is Complicating Matters for Buyers and Sellers
We never expected to find a home as quickly as we did. When my fiancée and I started looking, we assumed we would casually search until after our wedding in October, then get serious. But as we watched interest rates slowly begin to tick upward, we decided to speed up the process. Even then, we assumed it would take weeks or months to find a home. How could we have known it would only take one day?
Photo by Sarah de la Rosa
The Houston housing market is booming. In the last year, home sales have shot up by 28 percent and prices have risen by 11 percent as of May. The combination of low interest rates (they are still historically low despite rising over a point in the last two months) and still relatively low housing costs compared to most of the country -- nevermind a steadily growing economy and a rebound from the housing bubble of 2008 -- are sending prices and sales higher than ever. But, this is fueling concerns over the return of a housing bubble.
Real estate website Trulia recently reported that homes in Houston were as much as 2 percent over-valued in the current market, but cautioned that this is simply a rebound, not another bubble, not yet.More »