Houston appraisals falling short

[Daniel Schiller]

As we all sit in anticipation of what the crude collapse means for the Houston market, has anyone had issues with appraisals coming in underwater? I noticed the HELOC market begin to dislocate between pre-approvals and appraisals over the summer, and just last night heard a story about a home in the Memorial Park area coming in $200k below contract price - the buyer was ecstatic to walk away.