In the News – Rocketing local home prices make Dallas-area home market ‘moderate risk’
North Texas’ unprecedented run up in home prices has put the Dallas-area on a watch list of overheated housing markets.
Dallas and four other Texas cities were ranked among the “bottom” U.S. home markets in a new report by Nationwide Insurance.
The insurer gauged housing conditions in 400 cities across the country for its midyear report.
The Dallas area ranked in the bottom 10 of those markets because soaring home prices have outstripped income growth in the area. Dallas has a “moderate risk” of a housing slowdown over the next year, the analysts said.
Most U.S. housing markets are recovering from the recession and are not in danger of another price bubble, according to Nationwide.
“Incomes in six markets across the country, however, are not keeping pace with sharply rising home prices,” the report said. “They are Dallas, Houston and Austin, Texas; Denver, Colo.; and San Francisco and San Jose, Calif.”
Some Texas markets — in particular Midland, Odessa and Victoria — also rated poorly in the comparison because of economic decline caused by lower oil prices.
“The economy is doing just fine in Dallas,” said David Berson, Nationwide senior vice president and chief economist. “It’s the rate of price growth that’s the issue.
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