Houston housing market could float above economic bump, economist says
— reported by the Houston Business Journal
Houston is positioned to escape most of the negative economic consequences that a number of housing markets throughout the nation will feel as a result of a predicted correction of the nation’s housing market, a Houston economist said Tuesday.
University of Houston economist Barton Smith, who spoke to more than 1,000 people Tuesday at his real estate-focused program, “The Housing Bust: How Soon? How Bad?,” says Houston will be cushioned by a housing market that is still very affordable and a regional economy that is reaping the benefits of high energy prices.
During his annual real estate symposium, Smith pointed to excessively high prices and extremely low affordability in about a quarter of the nation’s housing markets as well as a dangerous rise in sub-prime lending that is already producing high levels of foreclosures.
He pointed out that local foreclosures are three times higher than they were just three years ago.