Dallas home prices see their best growth in three years in latest national report

Dallas-area home prices grew at the fastest rate in more than three years in the latest nationwide comparison.

Dallas prices were up 4.9% from a year ago in September the latest Standard & Poor’s CoreLogic Case-Shiller Home Price Index. Nationwide prices were 7% higher than in September 2019 — the largest such increase since 2014.

Home prices in North Texas and across the country have seen significant gains as demand for houses has risen, even with the pandemic.

“Our three monthly readings since June of this year have all shown accelerating growth in home prices, and September’s results are quite strong,” Standard & Poor’s Craig J. Lazzara said in the report. “The last time that the national composite matched September’s 7% growth rate was more than six years ago, in May 2014.

“This month’s increase may reflect a catch-up of COVID-depressed demand from earlier this year; it might also presage future strength, as COVID encourages potential buyers to move from urban apartments to suburban homes,” Lazzara said. “The next several months’ reports should help to shed light on this question.”

Phoenix saw the greatest home price gains with an 11.4% year-over-year increase. Seattle prices rose 10.1%, and San Diego prices were 9.5% higher than in 2019.

The rate of home price growth in Dallas has almost doubled since early this year as home sales have taken off.

So far in 2020, North Texas real estate agents have sold almost 100,000 single-family homes, setting a new record.

Home sales prices in the area have risen even faster than the Case-Shiller report shows. In October, the median price of houses sold by North Texas real estate agents was up 12% from a year earlier.

Since Case-Shiller compares values of actual properties for its study, those numbers are considered more telling than sales data, which can be influenced by the type of homes that are trading.

Dallas-area home prices are now at a record high in the Case-Shiller index. And prices in the area are up by 80% since the worst of the Great Recession in 2009.

Housing economists expect that the strong sales market — driven by record low interest rates — will continue into next year.

“Autumn housing indicators continue to show stronger-than-expected home sales and price growth, which are likely to remain through the rest of the 2020,” CoreLogic deputy chief economist Selma Hepp said. “Nevertheless, a bumpy road is still ahead with new resurgence of COVID-19 cases and increased recommendations to shelter-in-place again.

“Still, record-low mortgage rates and desire for more space will keep buyers active in the market, though the strong seasonal effect that was delayed into fall months is likely to start fading.”

But don’t look for a cool-down in prices.

“Some measures show home prices now growing at a faster pace than they ever have,” Zillow economist Matthew Speakman said in a statement. “While the worsening spread of COVID-19, and the economic uncertainty that accompanies it, do pose some potential risks to the booming housing market, it appears unlikely that this remarkable growth in home prices will abate in the coming months.”

Nationwide home prices rose 7%.
Nationwide home prices rose 7%.(Case-Shiller )

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