New Texas home prices are skyrocketing and some are finding themselves underwater in a state where home values are also soaring.
But as the price of housing in the Lone Star State has soared, some local buyers have found themselves scrambling to find a new home.
Read MoreFrom April through June, Texas home sales rose more than 12 percent.
Texas is home to more than 20 million people, making it the second most populous state in the U.S. by population.
But home sales have been falling in recent years as supply outstripped demand.
The average sale price in the state in June was $316,000, down 11.7 percent from the same month last year.
While home prices continue to rise, there are a few reasons to be hopeful in the coming months.
The U.N. predicts that home prices will continue to decline over the next decade, and that they will reach their lowest level in nearly a century.
According to a July report from the U