PLANO(CBSDFW.COM) – A warning from Wall Street. Top analysts say the booming DFW housing market could be too hot.
Some worry the lack of inventory in cities like Plano could lead to big trouble.
“I got weary with it-when you get all excited about one and it falls through… not sure if I want to go through this again,” says home buyer, Rachel Freiberger.
Freiberger and her husband Doug Freiberger thought their house hunt would last a week or so. Six months later, they’re still looking, after getting repeatedly outbid.
“It’s very tiring,” says Rachel Freiberger. “The up and down and up and down.”
For would-be buyers, it’s an emotional roller coaster as home prices seem to be only going up.
“The inventory is so low, it’s driving the prices up,” says realtor Valerie Kirkpatrick. “It’s driving the buyers up, they’re having to pay more and more and more and the houses are not worth what they’re paying”
Kirkpatrick says she’s worried. She’s seeing an influx of cash buyers and she says that pushes price points higher. Too high.
“It is absolutely scary to me…no matter how much relocating companies we have, we just don’t have enough houses to sell and I fear we are going to end up facing what California faced and Arizona faced when the bottom fell out,” says Kirkpatrick.
Now Wall Street analysts are also warning Dallas-Fort Worth home prices are overvalued, saying a correction could be coming because of falling oil prices. But other area realtors disagree, saying values are not too high because the economy is not dependent on oil. Demand is high and interest rates are still very low.
(©2015 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)