With home sales in North Texas moderating, the potential for a housing bust in Dallas-Fort Worth is reduced.
That’s what Fitch Ratings says in its latest report card on the U.S. home market.
The Wall Street firm has long warned that D-FW home prices are out of whack and unsustainable. For more than five years, Fitch Ratings has raised a red flag about runaway Texas home prices. And in September, the firm’s analysts said D-FW housing prices were 10% to 14% overvalued.
But an updated report on home values in major U.S. markets now puts D-FW prices in the “sustainable” category. The latest data shows that area home costs are only 5% to 9% overheated — among the best performance in the major areas Fitch surveys.
The analysts say they revised home price models to reflect more recent data.
Most U.S. home markets are still overpriced...