According to the most recent U.S. Sustainable Home Price Report from Fitch Ratings, homes in the DFW area are 10 to 15% overvalued after the local market has seen such rapid price growth over the last few years.
Even despite home prices nationally jumping 4.2% in 2015 and most regions seeing viable increases in home prices, the rate at which prices in the Dallas area specially has surpassed market fundamentals, at least in the eyes of New York-based Fitch Ratings.
As noted in the report, the entire North Texas region has enjoyed a very healthy economy in recent years, leading to increased job and population growth, which is one of primary driving factors behind why local home prices have soared. In addition, a lower-than-normal inventory has also contributed to a steady rise in home prices, which has all-too common lead to bidding wars among current home buyers trying to secure a new place to live during such a crazy time in the DFW real estate market.
Along with Texas, Florida was also mentioned as the only other state in the Fitch Ratings report where homes are currently overpriced. But with the busy spring season almost behind us, buyer may see a slight cool down for at least a little while before things traditionally pick back up in the fall.
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