Dallas Morning News reports the home values in the Dallas area increased by nearly 25% year-over-year. Dallas had the fifth-highest increase in home values in the United States.
According to the S&P CoreLogic Case-Shiller Home Price Index, Dallas home costs were at their highest rate for the second consecutive month.
S&P’s Managing Director, Craig J. Lazzara, said prices jumped more than 19% nationwide in October from the year before. “October’s 19.1% gain in the national composite is the fourth-highest reading in the 34 years covered by our data. We continue to see very strong growth at the city level.”
Other cities which showed significant annual gains were Phoenix (32.3%), Tampa (28.1%), and Miami (25.7%).
Economists can’t predict how long such enormous home appreciation will continue.
Despite economic uncertainties due to the pandemic, CoreLogic economist Selma Hepp is hopeful for the home market.
“While there were unexpected economic and financial twists in 2021, home price growth reached its new historical peak and ended the year exceptionally strong, suggesting 2022 will be another year of robust growth. Home prices continue to appreciate at double-digit rates — two-to three-times faster than a year ago — across all metropolitan areas.”
She also stated that she does not think those in the younger generation will purchase many homes.
“Unfortunately, the rate of home price growth will be limiting for many young buyers who have yet to accumulate sufficient equity gains, and an expected increase in mortgage rates next year will present further challenges. Together, these two factors will keep a lid on continued home price acceleration,” she commented.
In the Case-Shiller’s monthly cost measure, Dallas homes are more than twice what they were in the last ten years. This year, in North Texas, the median cost of a single-family home is a record-high of $350,000.
The index is more precise than the data from real estate agents, who report on properties sold from month to month. Case-Shiller analyzes sales of properties over time.