Dallas-area home prices are up 4 percent from a year ago but continue to lag nationwide increases.
The Dallas price gain was slightly below the nationwide 5.2 percent rise in home prices in November from a year earlier in the latest Standard & Poor’s/Case-Shiller Home Price Index.
Home prices in North Texas are now growing at about half the rate they were a year or two ago.
And the residential appreciation rate in the Dallas area is nothing like the double-digit price hikes in Las Vegas and larger gains in other Southwestern markets.
“Home prices are still rising, but more slowly than in recent months,” S&P’s David M. Blitzer said in the new report. “The pace of price increases is being dampened by declining sales of existing homes and weaker affordability.
“Sales peaked in November 2017 and drifted down through 2018.”
Along with the 12 percent year-over-year price increase in Las Vegas, Phoenix prices were 8.1 percent higher and Seattle and Atlanta’s rose more than 6 percent.
With the latest increases, Dallas-area home prices are now almost 50 percent higher than they were during the Great Recession, according to Case-Shiller.
Nationwide home prices should continue to rise at a moderate rate in most areas, housing analysts say.
“We expect home-price growth to continue to moderate over the next several months,” Ralph B. McLaughlin, deputy chief economist and executive of research and insights for CoreLogic, said in a statement. “However, falling mortgage rates should help mitigate some of these effects.”
North Texas home sales slowed significantly in the final months of 2018.
And Dallas-Fort Worth was the only major Texas metro area with a drop in total home sales last year — they were down 2.4 percent from 2017’s record level.
The number of homes for sale in the region has grown almost 25 percent.
Houses are taking longer to sell in North Texas, and the number of properties on the market in the area has risen more than 20 percent in the last year.
Higher mortgage costs and a lack of affordable homes to buy has slowed purchases in many markets.
“The housing market appears to be running on fumes; momentum is keeping price growth in the positive, but signs of a slowdown are officially here,” Cheryl Young, Trulia senior economist, said in a statement. “While still up, the pace of annual home price growth slowed in November, dropping to its lowest rate in two years.
“Expect more slowdown in home price growth in the months ahead, especially as the index reflects economic uncertainty brought on by the tumult in the stock market at the end of 2018 and the economic uncertainty precipitated by the recent government shutdown.”
Article by Steve Brown, Real Estate Editor