Nationwide and local home price gains are the largest in years.
Dallas-area home prices are up 6.5% in the latest nationwide comparison.
It was the largest year-over-year increase for the region in three years in the closely watched S&P CoreLogic Case-Shiller Home Price Index.
Nationwide, home prices in October were up 8.4% from 2019 levels in data released Tuesday.
“Since June, our monthly readings have shown accelerating growth in home prices, and October’s results emphatically emphasize that trend,” Standard & Poor’s Craig J. Lazzara said in the report. “The last time that the national composite matched this month’s 8.4% growth rate was more than six and a half years ago, in March 2014.
“Although the full history of the pandemic’s impact on housing prices is yet to be written, the data from the last several months are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes.”
Some metro areas saw even greater home price gains.
Dallas-area home prices are now at an all-time high in the monthly measure.
Local home values are more than 80% ahead of where they were in the worst of the Great Recession in 2009.
Through the first 11 months of 2020, the median price of single-family homes sold by North Texas real estate agents is 7% higher than the same period in 2019.
Since Case-Shiller compares values of actual properties for its study, those numbers are considered more telling than sales data, which can be influenced by the type of homes that are trading.
Driven by price spikes in the West, national home values are growing by an even greater rate than in North Texas.
October’s increase was the largest gain in the Case-Shiller index since October 2014, said CoreLogic deputy chief economist Selma Hepp.
“The index is now 25% above the peak reached during pre-Great Recession,” Hepp said. “Looking ahead, 2021 will present a new set of challenges both for the economy and the housing market.
“While distribution of coronavirus vaccinations is underway, there may still be some bumps along the way to economic recovery,” she said. “Taken together, recent stimulus actions are likely to help housing market demand and ensure continued home price growth.”
Many economists expect home price growth to continue into 2021.
Record-low mortgage rates and a shortage of houses on the market in most metro areas, including Dallas-Fort Worth, have created strong upward pressure on home values.
“As 2020 winds down, the pace of home price appreciation continues to gear up,” Zillow economist Matthew Speakman said. “The path of home prices in recent months has been nothing short of remarkable.
“In many places across the country, and in the nation overall, home prices are growing, by some measures at their fastest pace in decades,” he said. “These factors appear likely to remain in place in the near term, and an incrementally improving economy should encourage more buyers to enter the market. Taken together, this torrid pace of home price appreciation appears primed to continue well into 2021.”