With North Texas home prices up by more than 10 percent so far this year, analysts are keeping a red flag on Dallas-Fort Worth's home market. New York-based Fitch Ratings says that home prices in the D-FW area are 10 percent to 14 percent higher than sustainable values, according to a just-released report. The Wall Street ratings firm has been sounding the alarm about North Texas home values for the last two years because of the pace of price increases.
The D-FW area has seen some of the largest percentage gains in home prices in the country due to an economic boom that's driven high demand for housing and a tight supply of properties for sale. "Dallas home prices are driven by solid income growth and low unemployment so the economy is certainly strong, but price growth is still just too fast," said Fitch's Grant Bailey. Fitch analyzes home prices in 20 major U.S. markets for its quarterly report.
- Dallas Morning News, July 19, 2017