The Dallas News Series Continued
The next piece on the Dallas market from Danielle DiMartino is online. "Richard Fisher, president of the Dallas Federal Reserve, noted that many areas of Texas have seen resurging economic growth. Dallas was not one of them. 'The weakest spot is North Texas,' Mr. Fisher said, 'largely because of the hit that telecom, technology and aviation took.'"
"And yet 'builders just keep building,' said David Houston. 'The risk is not so much the prices of the homes themselves, it's the loans being made on the homes. The danger I see here is that people are buying so much more home than they can afford.'"
If that is the case, it is strictly a function of the easy money. "Jim Pearson of Pearson Appraisal Co., 'This is where you're seeing a lot of the problems, where irresponsible or downright fraudulent lenders are trying to find unethical appraisers to work with them.'"
"What will happen when those loans are stress-tested, if the local economy doesn't improve, if the national economy falters, if interest rates rise?"