Nationwide home prices were up 19% in latest Case-Shiller survey.
Dallas-area home prices were up by almost 25% year-over-year in the latest nationwide comparison.
It was the second month in a row that Dallas home price gains were at the highest rate ever in the S&P CoreLogic Case-Shiller Home Price Index.
Nationwide prices rose by more than 19% in October from a year earlier.
“October’s 19.1% gain in the national composite is the fourth-highest reading in the 34 years covered by our data,” S&P’s Craig J. Lazzara said in the report. “We continue to see very strong growth at the city level.”
All 20 of the major U.S. home markets Case-Shiller tracks saw double-digit percentage home price increases.
The largest annual gains were in Phoenix (32.3%), Tampa (28.1%) and Miami (25.7%). The Dallas area had the fifth-highest increase in the country.
Economists continue to question how much longer such huge home appreciation will continue.
Case-Shiller’s nationwide home price growth peaked at 19.8% in August but remains at a historically high rate.
“While there were unexpected economic and financial twists in 2021, home price growth reached its new historical peak and ended the year exceptionally strong, suggesting 2022 will be another year of robust growth,” CoreLogic economist Selma Hepp said. “Home prices continue to appreciate at double-digit rates — two to three times faster than a year ago — across all metropolitan areas.
“Unfortunately, the rate of home price growth will be limiting for many young buyers who have yet to accumulate sufficient equity gains, and an expected increase in mortgage rates next year will present further challenges,” Hepp said. “Together, these two factors will keep a lid on continued home price acceleration.”
Dallas-area home prices have more than doubled in the last 10 years in Case-Shiller’s monthly cost measure. And median single-family home sales prices in North Texas this year hit a record $350,000.
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.
“Since the start of the pandemic, house prices in the U.S. have been inflated by historically low interest rates, supply restrictions, which included a foreclosure moratorium, and increased savings for a down payment due to limited options for discretionary spending,” said Zillow senior economist Kwame Donaldson. “House price appreciation will continue to slow from this summer’s unsustainable levels, but these conditions ensure that growth will comfortably exceed normal rates over the next year.”