Dallas market 'undervalued'
Steve Brown: Dallas market 'undervalued'
This time, being on the low end of a survey probably isn't so bad
09:34 AM CDT on Friday, June 16, 2006
Dallas Morning News
Dallas has more to brag about than its basketball team.
A new survey finds that Big D has the most undervalued housing of any big-city market in the country. That's right – the best buy in the nation.
Normally, it wouldn't be bragging material to have "undervalued" real estate.
But with the buzz about cooling residential prices in many cities, it's good news that
Dallas doesn't have a housing bubble hanging overhead.
Indeed, homes in the Dallas area were almost 19 percent undervalued in the first quarter, according to an analysis by financial firms Global Insight and National City Corp.
Compare that with Naples, Fla., where the median home price was more than 100 percent overvalued. Or Salinas, Calif., which was 79 percent overvalued in the first quarter.
"Seventy-one metro areas, accounting for 39 percent of all single-family housing value, were deemed to be extremely overvalued," the housing sector report warns. Most of those hot markets are in Florida and California.
But there are signs that a correction is in the works. "Quarter-to-quarter price appreciation is slowing in most metro areas and is nearly flat in San Diego and Boston," the analysts said.
The cities at the top of the "undervalued" column have something in common – they are all in Texas. Bryan-College Station has the biggest spread – almost 24 percent undervalued. Next comes Dallas, and then Fort Worth with 18.5 percent undervalue in median prices.
The study also points out that the Dallas area lost more than 18 percent of its housing value during the "correction" of 1986 through 1989. Only someone who wasn't here for the regional economic collapse of the late 1980s would refer to it as a "correction."
Texas homeowners who watched their real estate values evaporate would have more colorful descriptions of that real estate crash.
No doubt the folks in Florida and California will have something to say about home values before the current "correction" is over.
Overvalued
Naples, Fla. 102.6%
Salinas, Calif. 79.1%
Fort Pierce, Fla. 77.4%
Merced, Calif. 77.0%
Bend, Ore. 76.4%
Stockton, Calif. 74.9%
Punta Gorda, Fla. 73.4%
Santa Barbara, Calif. 73.0%
Madera, Calif. 72.5%
Riverside, Calif. 68.7%
Undervalued
Bryan-College Station 23.7%
Dallas 18.9%
Fort Worth 18.5%
Houston 15.8%
Killeen 15.1%
Midland 13.6%
El Paso 13.1%
McAllen 12.9%
Shreveport, La. 12.7%
New Orleans 12.4%
This time, being on the low end of a survey probably isn't so bad
09:34 AM CDT on Friday, June 16, 2006
Dallas Morning News
Dallas has more to brag about than its basketball team.
A new survey finds that Big D has the most undervalued housing of any big-city market in the country. That's right – the best buy in the nation.
Normally, it wouldn't be bragging material to have "undervalued" real estate.
But with the buzz about cooling residential prices in many cities, it's good news that
Dallas doesn't have a housing bubble hanging overhead.
Indeed, homes in the Dallas area were almost 19 percent undervalued in the first quarter, according to an analysis by financial firms Global Insight and National City Corp.
Compare that with Naples, Fla., where the median home price was more than 100 percent overvalued. Or Salinas, Calif., which was 79 percent overvalued in the first quarter.
"Seventy-one metro areas, accounting for 39 percent of all single-family housing value, were deemed to be extremely overvalued," the housing sector report warns. Most of those hot markets are in Florida and California.
But there are signs that a correction is in the works. "Quarter-to-quarter price appreciation is slowing in most metro areas and is nearly flat in San Diego and Boston," the analysts said.
The cities at the top of the "undervalued" column have something in common – they are all in Texas. Bryan-College Station has the biggest spread – almost 24 percent undervalued. Next comes Dallas, and then Fort Worth with 18.5 percent undervalue in median prices.
The study also points out that the Dallas area lost more than 18 percent of its housing value during the "correction" of 1986 through 1989. Only someone who wasn't here for the regional economic collapse of the late 1980s would refer to it as a "correction."
Texas homeowners who watched their real estate values evaporate would have more colorful descriptions of that real estate crash.
No doubt the folks in Florida and California will have something to say about home values before the current "correction" is over.
Overvalued
Naples, Fla. 102.6%
Salinas, Calif. 79.1%
Fort Pierce, Fla. 77.4%
Merced, Calif. 77.0%
Bend, Ore. 76.4%
Stockton, Calif. 74.9%
Punta Gorda, Fla. 73.4%
Santa Barbara, Calif. 73.0%
Madera, Calif. 72.5%
Riverside, Calif. 68.7%
Undervalued
Bryan-College Station 23.7%
Dallas 18.9%
Fort Worth 18.5%
Houston 15.8%
Killeen 15.1%
Midland 13.6%
El Paso 13.1%
McAllen 12.9%
Shreveport, La. 12.7%
New Orleans 12.4%
posted by Beth at 4:03 PM
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