The Federal Reserve Bank of Dallas isn't alone in its worries about the big run up in Dallas-Fort Worth home prices. Wall Street firm Fitch Ratings has been fretting for three years about the unprecedented increases in North Texas home costs. It's estimates about how far D-FW home prices are out of whack have grown. Home prices in Dallas and Fort Worth are overvalued by 10 to 14 percent, according to Fitch's just-released sustainable home price report. "Rapid home price growth in parts of the western U.S., Texas and Florida continue to exceed supporting economic fundamentals," the analysts warn. "Fitch estimates home prices in many major metropolitan areas in those regions as currently overvalued." D-FW home prices aren't the only other major metro markets on Fitch's fourth quarter watch list. The ratings firm said that prices in Las Vegas, Portland an Phoenix are also 10 to 14 percent overdone. Prices in markets including Atlanta, Los Angeles, Miami San Francisco, Seattle and Tampa are 5 to 9 percent overvalued, Fitch found. The run up in North Texas home prices - 14 percent higher in the first two months of this year compared with 2016 levels - is being driven by the current economic boom and a lack of housing, Fitch Director Samuel So said. "That certainly drives the home price higher, So said. North Texas median home sales prices have risen by more than 40 percent in the last four years and are now at an all-time high.
- Dallas Morning News, April 3, 2017