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DFW housing market overvalued but not criticallyDFW housing market overvalued but not criticallyhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=194972018-03-20T05:00:00Z2018-03-20T18:00:00Z

​​​​DALLAS – Fitch Ratings says that home prices in Dallas-Fort Worth are between​ 15 and 19 percent overvalued. However, Real Estate Center Chief Economist Dr. Jim Gaines said such warnings are overstated. 

As long as the economy continues to grow, he doesn't believe North Texas' home values are out of whack.

"We don't think it's a bubble," Gaines said. "These reports have been coming out for years. Generally, I don't pay much attention to them. You can't ignore it because people are reading it."

While North Texas home prices have been rising faster than income increases, Gaines said things aren't at a critical level yet.

"If the median price is six times median income, you have a real problem," he said. "Currently it's a little higher than normal but not in the danger zone."

Gaines said eventually the rate of North Texas home price increases will slow as the economy downshifts or home supply catches up with demand.

​"Eventually the market will balance out, and these near double digit-rates of increase in median home prices will come to a halt, ​and it will revert back to a 3 to 4 percent annual increase," he said. "Everybody will think the sky is falling, but it is getting back to normal."​

Dallas Morning News
Dallas-Fort Worth-Arlington
Housing
https://www.dallasnews.com/business/real-estate/2018/03/19/ratings-firm-raises-red-flag-d-fw-home-pricesRead more at {Source}

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