Report Says Dallas, Bismarck, N.D. Housing Markets Overheated

Forget about New York and San Francisco if you’re worried about a possible housing bubble. Dallas, Texas and Bismarck, North Dakota are the two housing markets that economist David Berson is most concerned about being overheated. Berson is Senior VP and Chief Economist for Nationwide Mutual, which puts out its Health of Housing Markets Report each quarter. ‘The Dallas market we think is overheated. Historically home price gains there have been pretty modest because, think about Dallas, this big flat plain, builders can build. Well, they’re not building all that much, and Dallas has very strong job growth,’ said Berson. He also said that Bismarck, North Dakota remains a hot housing market, even with the drop in energy prices. ‘Despite the slowdown recently in fracking, still, there’s nowhere for people to move there. So house prices are through the roof,’ explained Berson. On the other end of the spectrum, Berson said the drop in oil prices has slowed the housing markets in parts of Louisiana. But overall, the U.S. housing market is healthy with little chance of a national housing downturn over the next year, according to the Nationwide report.