With home prices soaring, there’s talk about another housing bubble.
But home values in the Dallas-Fort Worth area — despite recent huge gains — may not be out of whack, according to analysts at a Wall Street firm.
In previous years, Fitch Ratings red-flagged D-FW homes as being overvalued.
And the firm’s latest estimate says home prices in almost three-fourths of U.S. metro areas are too high, based on economic fundamentals.
But D-FW isn’t one of those overheated home markets, according to Fitch’s latest quarterly price report.
D-FW is one of only three U.S. metro areas — along with Las Vegas and Detroit — that have “sustainable” home costs, the study of 20 markets says.
North Texas got the high marks from Fitch Ratings even though median home prices are at a record $380,000 — up 22% from a year ago, data from local real estate agents shows. And prices have grown about 45% in the past three years.
Fitch Ratings director Jian Mao says D-FW’s home price metrics have outpaced other areas.
“Dallas’ fundamentals have improved a lot, driven by strong rental growth, moderate increase in income and decreasing unemployment,” Mao said in an email. “The sharp increases in rents and income are driving sustainable prices higher.