No end in sight: Dallas home prices headed higher – The Dallas Morning News

https://www.dallasnews.com/business/real-estate/2021/06/29/no-end-in-sight-dallas-home-prices-headed-higher/


0

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.”

Prices were up in all 20 major U.S. markets.
Prices were up in all 20 major U.S. markets.(Case-Shiller )

Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *

Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format