The Dallas area had Texas’ smallest year-over-year home price gains in a new housing sector survey.
But more recent data says Dallas home prices are growing much faster than indicated in the CoreLogic report.
In July, nationwide home prices rose 5% from a year earlier, the survey found.
However, in the Dallas area, prices were up just 3.58% from July 2019. The Dallas increase was the smallest among the major Texas cities included in CoreLogic’s report.
Austin home prices were up more than 6.5% from the year before and home prices rose more than 5% in the San Antonio area.
CoreLogic analysts said nationwide home prices in July grew at the fastest rate in nearly two years.
“Lower-priced homes are sought after and have had faster annual price growth than luxury homes,” Frank Nothaft, chief economist at CoreLogic, said in the report. “First-time buyers and investors are actively seeking lower-priced homes, and that segment of the housing market is in particularly short supply.”
CoreLogic forecasts that home price growth will slow going into next year because of the recession and rising unemployment.
Demand for housing has been strong — even in the pandemic — due to low mortgage rates and more millennial buyers entering the market.
“On an aggregated level, the housing economy remains rock solid despite the shock and awe of the pandemic,” Frank Martell, president and CEO of CoreLogic, said in a statement. “Spurred on by strong demand and record-low mortgage rates, we expect to see more home building in 2021 and beyond, which should help support a healthy housing market for years to come.”
The low mortgage rates fueled a 25% jump in home sales in North Texas in July.
And median prices for single-family homes sold by local real estate agents were 9% higher than in July 2019.
Texas home price changes
Year-over-year home price increases for July:
Fort Worth 4.88%
San Antonio 5.07%