Houston-area home prices, which rose 3.5 percent in November compared with a year earlier, are considered overvalued, a new national report shows.
Houston was one of 37 U.S. markets considered to have home prices at least 10 percent higher than their long-term, sustainable level, according to Irvine, Calif.-based CoreLogic, a real estate data firm.
Among the nation’s top 50 markets, half are considered undervalued based on income and other economic fundamentals. Other markets considered overvalued include Las Vegas, Denver, Los Angeles and Miami.
"Without a significant surge in new building and affordable housing stock, the relatively high level of growth in home prices of recent years will continue in most markets," Frank Martell, president and CEO of CoreLogic, said in a statement. "Although policymakers are increasingly looking for ways to address the lack of affordable housing, much more needs to be done soon to see a significant improvement over the medium term."
Yet Houston’s housing market has other issues.
This region is still trying to gain its footing after Hurricane Harvey upended sales and put home values across the area in question.
In December, the average list price for a single-family home fell less than 1 percent to $303,784, according to the Houston Association of Realtors.
The market slowed during the holiday month, with 5,939 new listings coming onto the market, compared with 6,042 in Dec. 2016.