North Texas Will Be Spared A "Meltdown": Econ.
The Dallas News reports that Texas doesn't have a bubble problem. "Texans aren't likely to get trapped in a home price bubble. That upbeat assessment comes from a company that ranked Austin and Dallas as the No. 1 and 2 'high-risk' cities for home price declines two years ago."
"'Your home price appreciation has been pretty weak' compared with the rest of the country, said economist Marco Van Akkeren of PMI Mortgage Insurance Co. That's why Dallas is now 'toward the bottom of our list' in risk."
When readers comment on this blog they tell tales of oversupply, especially with condos. The most significant aspect of the general worrying is that, in todays' wacky RE market, nobody knows what houses are worth anymore. The theme is, we're not as bad as California.
"Most North Texas homebuyers have ignored the bugaboo talk about bubbles, said Sheila Rice of Virginia Cook Realtors. 'They didn't see any reason why it should be true. The price per square foot even in our most high-priced areas does not approach what it is on the coasts.'"
2 Comments:
We do not have a national bubble, just many local bubbles. Sadly, they will have global consequences.
Notrth Texas may not have a bubble to burst, but it is not shielded from the secondary effects of other bubbles.
Dallas/Ft Worth might not have bubble home prices but it has some of the highest foreclosure rates in the country due to the inability of owners living beyond their means to cash out refi. Goes to show you how much the high appreciation rates in the bubble markets has shielded for now many homeowners from the inevitable.
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