Austin housing market crash rings real estate alarm bells

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Home prices in the Texas city have dropped by more than 10 percent, reports say.

Mobile home park in Pflugerville just north of Austin. | Location: Pflugerville, Texas, USA.This correction, which has seen home prices drop across the country—though at very different speeds—in the past few months, has been interpreted by experts as the direct consequence of how unaffordable homes have become for many after two years of bidding wars and low inventory, especially since mortgage rates have suddenly surged.

Experts have consistently said that the current correction is nothing like the housing market crash of 2008, saying that both mortgage borrowers and lenders are in a much better position now than they used to be 15 years ago.article which pointed out how the city dodged the 2008 crash, only to find itself on the verge of a very similar situation—something that has the characteristic of a housing bubble., called the Austin housing market"the most interesting" in America.

In the 2000s, home prices in Austin fell by 8.5 percent, while in cities such as Las Vegas, Phoenix and Miami were falling by 63.9, 56.4 and 52.2 percent respectively between their peaks around 2007 and their bases in 2012, according to Zillow.that the city's housing market was the object of speculation from investors between 2020 and 2022, with many at that time expecting prices in the city would to continue rising.

Both elements are considered to be key parts to the forming of a housing bubble, together with a sudden price drop, which

 

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