Austin Real Estate

Tell us something we don't know: Austin real estate is way overvalued

Tell us something we don't know: Austin real estate is way overvalued

This really puts those "Welcome to Austin, please don't move here" stickers into perspective.

In news you probably already knew, Time is reporting that soon-to-be-released data from Jed Kolko, the Harvard-educated chief economist of real estate website Trulia, names Austin one of the most overvalued real estate markets in the country. Along with Los Angeles and Orange County, Calif., Austin real estate prices come in at 10 percent over their fair market price. 

In his "Bubble Watch" report, Kolko says while most of the country remains undervalued, the housing markets in areas of California and Texas (and one in Hawaii) are creating micro-bubbles similar to the one that encompassed most of the U.S. during the early aughts. When the bubble eventually burst in 2007 (a major factor in the worldwide economic recession), prices across the country were valued at about 24 percent over their fair market price.

So who else is on the list? San Antonio, Houston, San Francisco, Oakland, Riverside-San Bernadino, Calif., and Honolulu all range from 4 to 7 percent over valued. In his analysis, Kolko used price-to-income ratio, the price-to-rent ratio and prices relative to their long-term trend, according to Time.

Home for sale sold sign
Austin real estate is valued about 10 percent above where it should be. Photo via