Dallas is among the cities with the greatest annual home price gains, according to Case-Shiller.
A summer slowdown in home sales didn’t put the brakes on Dallas home prices.
Home values in the Dallas area were up almost 25% from a year ago in the latest S&P CoreLogic Case-Shiller Home Price Index.
It’s the largest annual home price gain ever for Dallas in the closely watched monthly housing measure.
Dallas-area prices rose almost 2% just in the month of August. And the local home price rise was well ahead of the 19.8% nationwide gain from August 2020, according to Case-Shiller.
“The U.S. housing market showed continuing strength in August 2021,” S&P’s Craig J. Lazzara said in the report. “Every one of our city and composite indices stands at its all-time high, and year-over-year price growth continues to be very strong, although moderating somewhat from last month’s levels.
“August data also suggest that the growth in housing prices, while still very strong, may be beginning to decelerate.”
More than half of the metro areas Case-Shiller surveyed had smaller annual price gains in August than in July.
Phoenix led the metro areas with a 33.3% annual price increase. And prices were up from a year ago by 26.2% in San Diego and 25.9% in Tampa.
Dallas had the fourth-highest home price increase among the 20 major markets included in the Case-Shiller survey.
U.S. home prices are rising at the fastest rate ever reported in the monthly Case-Shiller survey, which has tracked home prices in the largest U.S. cities for 30 years.
Case-Shiller’s price estimate is considered more accurate than home sales data from real estate agents, which can be influenced by the type of properties that are selling each month.
The Case-Shiller index compares the sales price changes of specific properties over time.
Dallas-area home prices have risen about 50% in the last five years, according to Case-Shiller’s estimates. The huge price growth has continued even though total home sales in the area have been down from a year ago in each of the last four months.
Dallas-area home prices have shot higher since the start of the COVID-19 pandemic, with more renters moving to ownership. A chronic shortage of houses on the market has added to the unprecedented upward pressure on North Texas home costs.
Some housing forecasters are hoping that price gains will moderate in the months ahead.
“While demand remains strong and buyers are still generally paying more for homes than asking price, the slowing acceleration in home prices suggests that buyer fatigue is setting in, particularly among higher-priced homes, where the acceleration in price growth from the previous month has been larger compared to low-tier homes,” CoreLogic chief economist Selma Hepp said. “Persistently strong demand among traditional homebuyers has been amplified by an increase in demand among investors this summer.”
Zillow economist Kwame Donaldson said nationwide housing activity has cooled somewhat heading into the autumn season.
“Compared to August, homes took a little bit longer to sell in September and the for-sale inventory inched higher,” Donaldson said. “In other words, though extraordinary market conditions pushed house prices skyward between the spring of 2020 and the summer of 2021, the latest signs indicate that the market is relenting.
“And while house price appreciation will remain elevated for the next several months, further acceleration is unlikely.”