Though home prices in Texas are well above historical peak levels, a research economist argues that the state is not experiencing a bubble, HousingWire reports.
According to research economist James Gaines of the Real Estate Center at Texas A&M University, all of Texas housing markets are “reporting significantly low volumes of homes being listed for sale relative to the demand. A normal market would have 6 months of inventory, while we are running at 3-month inventory.”
This high demand comes from the jobs created in the oil and gas boom. “The demand for housing is still relatively strong, and even if it does fall, it will fall to a more balanced supply. When you have balance of supply and demand, it is long sustainability,” Gaines told HousingWire.