Dallas-Fort Worth residents shouldn’t worry too much about a housing price shakeout. And they can forget about a bubble, if the latest market analysis is on track. Dallas and Fort Worth ranked at the bottom of the list of U.S. cities rated for risk of home price decline, in a survey released by PMI Group.
Only Pittsburgh had a lower chance of falling home prices than D-FW in PMI’s latest study.
Home markets in Texas have less than a 10 percent chance of price drops.
The Dallas area has only about a 7.5 percent likelihood, PMI found.
The D-FW area – which has seen very little price growth in the last two years – has only about a fifth the risk of home value declines as PMI’s U.S. average.
In the Dallas area, house prices have risen about 17 percent in the last five years, according to the latest estimate from the Office of Federal Housing Enterprise Oversight.
The average nationwide increase was 53.5 percent during the same period.
Dr. James Gaines, an economist with Texas A&M University’s Real Estate Center, said Texas’ sound economy is also a plus for the housing sector.