CoreLogic, a real estate analytics firm, gathered data on the 10 most overvalued housing markets in the United States, and four of the top 10 were in Texas. Austin and Houston were No. 1 and No. 2, respectively.

Austin is the most overvalued real estate market in the US because home prices are 42.3% more than what is considered sustainable based on the region's income per capita. Supply constraints coupled with Austin's national reputation have driven property values steadily upward over the past years.

Houston is the second most overvalued at 25.4% more than sustainable levels. Unlike Austin, Houston is on the coast, making the situation less surprising. Houston's market has been less constrained than Austin's as the city sprawls in all directions.

Dallas comes in at eighth at 14% more than the sustainable rate. Dallas' presence on the list is because of demand outpacing supply. The city has had impressive job growth for many years.

San Antonio ranked ninth, just behind Dallas with prices 12.4% higher than sustainable levels. It is suffering from the same problem as other cities in Texas, which is problematic because it means that the metros tend to move together more than other closely tied markets in the country.

All things considered, this is not seen as cause for much concern. Real estate prices are raising across the country but the federal government and other relevant authorities are keeping a close eye on the situation. Expect major moves from the federal government and the Fed should things turn ugly.