New analysis from Fitch Ratings shows that home prices in many Western cities are above sustainable levels, Dallas News reports.
The new analysis shows that home prices Las Vegas, Portland, and Austin are all 15 to 19 percent higher than what’s sustainable. Two more Texas cities, Dallas-Fort Worth and Houston, have home prices overvalued at 10 to 14 percent of sustainable levels. Five of the 17 most overvalued U.S. housing markets are in California. This is much different than markets in other areas of the countries, where many homes are undervalued.
"Prices in major metro areas of Texas are now more than 50 percent higher than they were in 2006, while prices in New York, Philadelphia and Washington, D.C., are still 4 percent-10 percent below 2006 levels," Fitch managing director Grant Bailey said in the report. "Elsewhere, home prices in major cities throughout Florida remain more than 15 percent below 2006 levels."
Advertisement
Related Stories
New-Home Sales
New-Home Sales Steady During February
A small increase in mortgage rates during February led to a flat reading for new-home sales
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Market Data + Trends
Looking Ahead: Second-Quarter Housing Market Trends
Industry pros offer insights about what real estate trends we can expect to see during the next three months