Home prices and mortgage payments in relation to home prices are comfortably below historic levels in many markets including Houston. That suggests home prices have overcorrected downward.  As a result Houston could experience a snap back in home prices, with price gains in the high single digits or low double digits, compared with historic average annual price appreciation of 4%. Houston is expected to realize higher than average price gains in the next two years.

Source: Realtor Magazine. “Buyer Hesitation Begins to Dissolve” by Lawrence Yun. September 2009.