A new study suggest that homes in Dallas and Fort Worth are overvalued and it could lead to “pricing correction” in the future.
A new study suggest that homes in Dallas and Fort Worth are overvalued and it could lead to "pricing correction" in the future.
The Dallas Business Journal first reported on the findings by New York-based Fitch Ratings Analysts, who say our region could be "overvalued" by as much as 15 percent.
But not everyone agrees. In fact, some North Texas realtors say they're not ready to jump on that study.
With consistent growth, supply and demand, North Texas home sales remain strong. Home prices are showing no signs of slowing down.
Eve Holder, a Dallas-based realtor, says home value is determined by what buyers are willing to pay. She says tight inventory of unsold homes in Dallas-Fort Worth should keep upward pressure on home prices for at least the remainder of the year.
"We're not going to know until middle spring, in 2018 if we're going to see a price correction, because that's when the market typically starts to really kick up," said Holder. "So if spring of 2018, we see homes continuing to fly off the market for over-asking price, and the kind of activity that we've seen, then I would say that we've got another year."
According to data from Fitch Ratings, homes in major metro areas across the state are priced more than 50 percent higher than they were just a decade ago.
