If interest rates go up, the price of homes could drop if not just level off. That's because people purchase a home based on what they can afford each month. Combine that with new laws now in place from the previous housing crash. Effectively, the banks are now making a profit rather then the home owner.
However all that said, Texas home prices aren't going anywhere but UP. Houston, Katy, Austin..etc. Exxon is the 2nd largest US company behind Google and is moving its HQ to the Woodlands which will employ 10,000 employees at the campus. Our governor has been poaching businesses from other states. People from said states are driving in droves to Texas. It's nuts! The traffic is getting worse and worse each year. Regardless, now the Chinese are investing in Texas real-estate which can only lead to a nasty bubble.