Home price gains in Dallas are the largest ever in monthly Case-Shiller report.
Dallas-area home prices saw an unprecedented 25% spike in the latest nationwide housing comparison.
While some U.S. home markets are seeing a moderation in home price rises, the year-over-year increase for Dallas was the highest ever in the just-released S&P CoreLogic Case-Shiller Home Price Index.
Nationwide home prices were 19.5% higher in September compared with a year earlier, a slightly smaller annual increase than in August.
But Dallas-area home prices have shown greater and greater gains in the closely watched Case-Shiller survey.
With home sales slowing in North Texas, many analysts are predicting that price appreciation in the area will moderate in the months ahead. So far there’s been no slowdown in the rate of home cost growth.
Case-Shiller analysts see smaller price increases in many U.S. home markets.
“Housing prices continued to show remarkable strength in September, though the pace of price increases declined slightly,” S&P’s Craig J. Lazzara said in the new report. “In 14 of 20 cities, prices decelerated — i.e., increased by less in September than in August.”
The greatest year-over-year home price gains were in Phoenix (33.1%), Tampa (27.7%) and Miami (25.2%). Dallas ranked fourth among the markets with the largest annual increases in September, tied with San Diego.
Dallas-area home prices have more than doubled in the last 10 years to a record high in Case-Shiller’s monthly cost measure.
So far in 2021, North Texas single-family home prices are 18% higher than in 2020, according to real estate agents’ sales reports.
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 sales price changes of specific properties over time.
Housing costs in the Dallas-Fort Worth area and across the nation have exploded during the last year due to a severe shortage of properties available for sale and rising demand during the COVID-19 pandemic.
North Texas home sales — but not prices — have been down during each of the last four months.
“While housing market activity is experiencing a typical seasonal slowdown, homebuyer demand remains strong and continues to push total home purchases above pre-pandemic levels,” CoreLogic deputy chief economist Selma Hepp said in an email. “Nevertheless, while activity continues to outperform pre-pandemic levels, there are encouraging signs of a slow albeit welcomed return to more sustainable balance between buyers and sellers.
“There is still low availability of for-sale homes, which continues to drive price growth, but the competition has faded and assuaged some of the bidding war intensity,” she said. “Overall, home price growth is likely to continue slowing over the next year.”