Home prices in DFW are overheated!
I have noticed this a year ago: prices are climbing up while the availability of homes for sale are decreasing. This year will be the same: few homes available with high prices. For the moment buyers are paying the listing price and often, way above the listing price.
One question: is this sustainable?
Writing is on the wall: home in Dallas – Forth Worth market are overvalued 10 to 14 percent (Fitch Ratings report). Home prices are rising faster than income can support. Not everybody that is moving to Texas will have an income to be able to buy a house in the area.
Appears that more and more potential buyers (with a median income under $70,000) are not able to afford new homes, even homes on the resale market.
In the last year I have seen an increase in the homes for rent in many areas, now 15-25% of the neighborhood. For the moment everything is fine.
There are two articles today that are pointing to the Dallas over heated market: one in Dallas Morning News: D-FW home prices raise red flag with analysts. And Dallas Business Journal:Home prices in DFW overheated by up to 14 percent.