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."
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