Dallas housing is still too hot, Wall Street analysts warn

D-FW home prices are overvalued by 10% to 14%, according to Fitch Ratings.

D-FW is one of six major U.S. markets where home prices are too high, according to Fitch Ratings.(Steve Brown)

Still overvalued — that’s the latest assessment of the Dallas housing market by one of Wall Street’s big ratings firms.

Dallas-Fort Worth home prices are 10% to 14% ahead of where they should be, according to the latest report by Fitch Ratings.

D-FW is one of six major U.S. metro markets where Fitch said that home prices were overheated in its second-quarter survey.

“Fitch estimates that home prices in approximately 18% of the country’s metropolitan areas are more than 10% overvalued,” the new analysis says. “Close to one-half of these counties are in Texas, Florida and California.

“Among the top 50 most-populated metropolitan areas, San Antonio, Austin and Las Vegas are estimated to be more than 20% overvalued.

“Fitch Ratings estimates that national home prices are currently 1.4% overvalued on a population-weighted average basis.”

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 D-FW area has been on Fitch’s home price watch list for several years now.

See the full Dallas News article


11:32 AM on Sep 19, 2019

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