The red-hot housing market may be in danger of overheating. That is the concern of some economists who are warning of a possible crash ahead, as home prices continue to rise to historic levels. The S&P Case-Shiller index says the average home price rose by 16% since last year, and is now 38% above its 2006 peak.
Jena Turner, owner of Houston's Found Realty, sees a similar trend here, with the market definitely tilted toward sellers. "I think Houston will continue to see good pricing for sellers through the end of the year," she tells KTRH. "We have so much demand that's pent up because people can't find homes, there's not enough inventory."
That said, Turner doesn't agree with the "Black Swan" predictions of some national economists. "I don't see a crash in prices coming, but I do see that our prices could level out in the coming months," she says. "I see that happening as inventory increases, and as buyer demand may slow down, honestly because of the fear of not being able to find something."
The inventory increase is already happening, with the number of single-family homes under construction in the U.S. at a 14-year high. Turner also sees another factor bringing more inventory onto the market as we come out of the pandemic. "As homeowners become more secure in what their work situation is or their commute situation, then they will start listing their homes for sale," she says.
"I don't think the Houston housing market necessarily follows the national market exactly," she adds.