The shortage of homes for sale continues to drive home prices in North Texas and across the U.S.
Nationwide home prices rose almost 5% year-over-year in June – the largest such increase in seven years according to a new report from CoreLogic.
Fort Worth-area prices rose by more than 5% in the same period.
And in the Dallas area prices were almost 3.6% higher than in June 2019.
“Home price appreciation continues at a torrid pace reflecting fundamental strength in demand drivers and affordability,” Frank Martell, president and CEO of CoreLogic, said in the report. “As we move forward, we expect these price increases to moderate over the next twelve months.
“Given the economic outlook, housing remains a bright spot for the foreseeable future.”
Looking at the major Texas metros, Austin had one of the largest annual home price gains in the country – up more than 7% in June.
Prices rose by more than 4% in Houston and San Antonio.
Along with low inventories of homes for sale, a jump in buyer demand is inflating prices in many markets.
“Mortgage rates hit record lows this spring, which created affordability for home buyers,” said Dr. Frank Nothaft, chief economist at CoreLogic. “First-time buyers, and millennials in particular, have jumped at the opportunity to achieve homeownership.”
CoreLogic predicts that home prices will continue to rise nationally through the rest of 2020.
But some markets that have been hard hit by the COVID-19 pandemic are likely to see downturns.
Las Vegas is forecast to see a more than 11% drop in home prices during the next year.
Source: Dallas Morning News