Dallas-Fort Worth Home Prices Are Rising at a Slower Pace but Up 28% From Last Year
Despite a slowdown in the market, the metro area ranked third nationwide in home price growth.
Dallas-Fort Worth home prices rose at a slower pace in June as buying activity slowed across the U.S. due to rapid price appreciation and higher interest rates. Still, the region’s price growth outpaced most other major markets.
The region’s home prices were up 28.2% compared with a year prior, behind only Tampa, Fla., (35%) and Miami (33%), according to the latest report from the closely watched S&P CoreLogic Case-Shiller Index. It measures home prices in the nation’s top 20 metro areas.
Nationally, June marked the third month of slower home price growth. U.S. home prices rose 18% year over year, down from 19.9% in May. All 20 metro areas analyzed by Case-Shiller saw double-digit increases, and all but Chicago saw price growth slow in June. Markets in the South and Southeast saw prices rise the fastest.
Craig Lazzara, managing director at S&P, said in a statement that the pace of price growth could slow further as the Federal Reserve ratchets up interest rates and makes mortgage financing more expensive. CoreLogic economists also expect home prices to slow, but not decline, in most markets over the next year.
“As the macroeconomic environment continues to be challenging, home prices may well continue to decelerate,” Lazarra said. “It’s important to bear in mind that deceleration and decline are two entirely different things, and that prices are still rising at a robust clip.”
The Case-Shiller index compares sales price changes of specific properties over time. The index’s price estimate is considered more accurate than home sales data from agents, which can be influenced by the type of properties that are selling each month.
The median home price in Dallas-Fort Worth was $421,000 as of July, according to the Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems.
With a smaller pool of interested buyers, more sellers are finding that they have to lower the price of their home below what they originally expected. About 45% of homes on the market in July saw price reductions, according to Redfin.
“Even in markets that are seeing falling prices on a monthly basis, the dips are nowhere near enough to undo the rapid appreciation that occurred since the onset of the pandemic, meaning affordability remains a significant challenge,” said Zillow economist Nicole Bachaud in a statement. “By the same token, homeowners aren’t at risk of seeing their equity depleting.”
Source: Dallas Morning News