Home price growth in North Texas has slowed dramatically during the last year. But the Dallas-Fort Worth area is still on the list of major U.S. metro areas where housing values are significantly overvalued, according to the latest report from Fitch Ratings.
The Wall Street analyst looks at home prices and economic conditions in the country’s 20 largest markets for its quarterly Sustainable Home Price report.
“The pace of home price growth in the United States appears to be slowing from a gallop to a trot,” Fitch’s latest price report finds.
Nationwide, home prices grew 3% nationally and just 2.6% in the D-FW area in the first quarter compared with a year ago, Fitch analysts said.
“Annual home price growth is now at the slowest rate in seven years, but the slowdown should plateau due to the recent drop in interest rates and the limited supply of new homes,” Fitch managing director Grant Bailey said in the report.
Even with the decline in appreciation rates, by Fitch’s estimates home values in the D-FW area were 10% to 14% overvalued in the first quarter. That’s a slight improvement from a year ago, when Fitch estimated that North Texas residential prices were as much as 19% overheated.
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Steve Brown, Real Estate Editor