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Last updated on February 3rd, 2021 at 11:29 am
In the latest nationwide comparison, Dallas had the biggest price gains in more than a year. But local data shows home costs increasing at an even faster pace.
According to the S&P CoreLogic Case-Shiller Home Price Index Dallas-area, home prices were up 3.2%, which was less than the 4.8% nationwide home price hike in July compared to last year.
Local real estate agents reported that median home sales prices in North Texas were actually 9% higher in July and August than a year earlier.
As many buyers are in the market for properties wanting to take advantage of record-low mortgage rates resulting in local home price gains.
S&P’s Craig J. Lazzara said in the new Case-Shiller report, “Housing prices rose in July, rose at an accelerating pace in July compared to June. The strength of the housing market was consistent nationally.”
Lazzara said, “Prices were particularly strong in the Southeast and West regions, and comparatively weak in the Midwest and Northeast.”
Case-Shiller’s survey tracks the sales prices of specific homes over time. It does not include new construction.
A shortage of homes for sale in many metro areas has propelled the increase in home prices. The inventory of homes for sale in the area is down 45% from this time in 2019.
Phoenix gained up 9.2%, and Seattle was 7% higher than a year earlier. North Texas home sales rose by 25% year-over-year in July and were 11% higher in August.
“Home prices continued to push pandemic-related uncertainties aside and reach new heights into the summer months, as demand for housing outpaced supply,” Zillow Economist Matthew Speakman said in a statement.
“An unprecedented lack of for-sale homes combined with persistently low mortgage rates have stoked competition for housing in recent months that will not relent.
“Sales volume has held firm at a time when it would normally show signs of cooling, and home prices continue to push decisively higher,” he said. “The question now is how much longer this will continue.”
Experts expect the upward pressure on prices to continue right through the end of the year.
Reference Source: National Mortgage News
