North Texas home prices are up over 4% in the last 12 months, a new study says.
Home prices in the Dallas-Plano-Irving metro area fell 1.3% in October from a month earlier but remain 4.1% up on the year, according to the First American Data & Analytics Monthly Home Price Index (HPI) report.
With mortgage rates hitting 8% last month, homeowners who locked in a competitive mortgage rate were not keen to part ways with their property in October, according to Mark Fleming, chief economist at First American, in a press release for the report.
“While the surge in long-term bond yields drove mortgage rates to 8 percent, sellers continued their ‘supplier’s strike’ and continued to hold back housing supply, Fleming said. “Preliminary October sale prices continue to indicate that the lack of supply is constraining the market more than sinking affordability, which reached another record low last month.”
In general, soaring home prices and rising mortgage rates have priced many local homebuyers out of the market over the last year, as reported by The Dallas Express. From October 2022 to October 2023, starter-tier, mid-tier, and luxury homes all saw annual increases throughout the Dallas-Plano-Irving metro area.
Over the past 12 months, starter-tier homes in the region rose 3.5%, mid-tier homes increased 2.3%, and luxury homes jumped 4.2%, according to the report. The year-over-year growth in the HPI was 3.8% for Texas.
“While resilient first-time home buyer demand and ongoing supply shortages kept price growth in the starter tier of the market strong, the luxury end of the market surprised with unexpected surges in price appreciation,” said Fleming.
“Luxury-tier buyers typically already own homes and are trading up, despite taking on a mortgage rate on the home they purchase that is well above the rate on the home they sell.”
First American’s report tracks home price changes less than four weeks behind real-time at the national, state, and metropolitan levels.