Each local area is different- so obviously is real estate
Let’s keep our focus on Houston to explain why real estate is local and not national.
Texas is flat and Texans should be thankful it is!! I have always said the homes that have the least amount of appreciation are the homes that are further out. Why? Well because you will always be competing with the next new subdivision and people will always drive 5 more minutes down the interstate to get the new home versus the 5 year old home.
The difference between the homes that are further out and the ones that are closer in is the redevelopment of neighborhoods. When one area begins to get a little too pricey, the area next door starts to get redeveloped. The best example of this situation is the Heights. The beauty of this though is that Houston has land like California and plenty of it therefore we did not have the 10-15% unrealistic appreciation areas due to a limited supply of land.
Do not get me wrong, prices have softened in Houston but nothing compared to the rest of the country. It is because of how Houston is laid out that allows home buyers the liberty to buy without having to only consider the appreciation in the future. They are now buying based on what they want unlike in past years, when they purchase homes based on what was available.