Local home costs were 15.9% higher in April than a year earlier.
Dallas-area home prices soared a record 15.9% in the latest nationwide comparison.
The local home price rise in April was higher than the nationwide 14.6% year-over-year gain, according to Standard & Poor’s CoreLogic Case-Shiller Home Price Index.
Dallas home prices rose almost 3% just between March and April, and area housing costs have continued to increase since then.
A lack of homes for sale and record demand for housing have caused prices in North Texas and across the country to grow at an unprecedented rate this year.
“Housing prices accelerated their surge in April 2021,” S&P’s Craig J. Lazzara said in the report. “April’s performance was truly extraordinary.
“Five cities — Charlotte, Cleveland, Dallas, Denver, and Seattle — joined the national composite in recording their all-time-highest 12-month gains.
Among the 20 major U.S. markets Case-Shiller tracks, the largest annual gains were in Phoenix (22.3%), San Diego (21.6%) and Seattle (20.2%).
“We have previously suggested that the strength in the U.S. housing market is being driven in part by reaction to the COVID pandemic as potential buyers move from urban apartments to suburban homes,” Lazzara said. “This demand surge may simply represent an acceleration of purchases that would have occurred anyway over the next several years.”
With April’s surge in housing costs, Dallas-area home prices have almost doubled in the past decade, according to the Case-Shiller index.
And there is no end in sight, according to more recent local numbers.
Median prices of North Texas single-family homes sold by real estate agents rose 26% in May from a year earlier, according to the latest data from the Texas Real Estate Research Center and North Texas Real Estate Information Systems.
“It’s probable that continued massive demand will keep pressure on prices, which are likely to remain at double-digit growth rate throughout the remainder of 2021,” CoreLogic economist Selma Hepp said in an email. “And while the acceleration may be met with concerns, mortgage interest rates remain 50% lower than they were in 2005, when home price growth last peaked, keeping the ratio of mortgage payments to monthly households income lower today.”
Even with the lower finance costs, many potential homebuyers are being priced out of the Dallas-area housing market.
“Despite sharply rising prices, demand for homes remains very strong,” Zillow economist Matthew Speakman said. “Bidding wars for the relatively few houses available remain common, and homes are going under contract at an increasingly fast pace.
“But a return to a balanced market remains a long way off, and there are few, if any, signs that home price appreciation will start to subside anytime soon.”