Dallas-Area Home Prices Rise Over 2% in Latest Measure
The 2.1% price rise in Dallas was the largest in almost a year in the Case-Shiller report.
Dallas-area home prices were about 2% higher at the end of 2023 from a year earlier.
That’s less than half the nationwide 5.5% gain in December, according to the latest S&P CoreLogic Case-Shiller home price index. But it’s the Dallas area’s largest annual home price increase in almost a year in the closely-watched monthly housing market measure.
Home prices in North Texas have rebounded in recent months after small declines earlier last year.
Sales of homes and prices across the country until recently have been stifled by higher mortgage rates. But analysts are expecting a stronger market this year.
Nationwide, home prices were at a record high at the start of 2024, according to Case-Shiller. All 20 of the major metro areas included in the survey had higher home prices in December than a year earlier.
“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years,” S&P’s Brian Luke said in the report. “While we are not experiencing the double-digit gains seen in the previous two years, above-trend growth should be well received considering the rising costs of financing home mortgages.
“The past two years reflect consistent growth slightly above trend, suggesting a more secular shift in home ownership post-pandemic,” he said. “In the short term, meanwhile, we should be able to measure the impact of higher mortgage rates on home prices.”
The largest year-over-year home price increases were in San Diego (8.8%), Los Angeles (8.3%) and Detroit (8.3%).
Dallas had one of the smallest price increases among the 20 cities Case-Shiller tracks.
The Case-Shiller index is a three-month moving average that compares sales-price changes of specific properties over time.
“While S&P CoreLogic Case-Shiller Index continues to show resiliency of home prices against surging borrowing costs, it also highlights continued headwinds for the housing market, namely elevated mortgage rates and severely lacking inventory of existing homes for sale,” said Selma Hepp, chief economist at CoreLogic. “And as mortgage rates continue to flirt in the 7% range, it will be difficult to convince existing homeowners to move right now.
“Nevertheless, as the recent surge in mortgage application data has shown following a drop in rates, buyers are anxiously waiting to jump in the market as soon as mortgage rates fall,” she said. “That means that 2024 will show another year of home price highs.”
North Texas home sales are already headed higher. In January, sales of homes by Dallas-Fort Worth real estate agents rose by about 14% from 2023 levels – one of the largest such gains in the country.
January’s jump in DFW home purchases was a turnaround from the 9% decline in local property purchases during 2023.
DFW home prices were 2.1% higher in January than a year earlier, according to local real estate agent reports. Home sales prices in the area are still slightly below the record levels set in 2022.
Source: Dallas Morning News