D-FW home prices grew more than in most other metros in May

D-FW home prices grew more than in most other metros in May

Roger Pettingell Sarasota Real Estate

Dallas-Fort Worth home prices saw some of the fastest growth in the nation in the spring, despite slight deceleration across the country.

The region’s home prices grew 30.8% year over year in May, the third-fastest growth seen in the latest report from the S&P CoreLogic Case-Shiller Index. National home prices grew 19.7%, down from 20.6% in April.

All 20 metro areas in the index saw double-digit price increases, but there was evidence of deceleration as only four saw price gains for May that exceeded April. Price growth was strongest in the South and Southeast, with only Tampa and Miami seeing higher price gains than Dallas-Fort Worth.

The index compares sales price changes of specific properties over time. Case-Shiller’s price estimate is considered more accurate than home sales data from agents, which can be influenced by the type of properties that are selling each month.

“Slowing price growth is a reflection of changing tides in the housing market,” said Zillow economist Nicole Bachaud in a statement. “Sales volume has slumped, inventory is on the rise and homes are spending more time on the market.”

While the days of historic price growth may now be in the past, it may still be some time before the U.S. sees a truly balanced market. Bachaud said prices still face upward pressure in the long term as some builders are scaling back their activity and people are still moving throughout the country.

In June, 9,133 existing single-family homes sold in Dallas-Fort Worth — down 8% from June 2021, according to the Texas Real Estate Research Center at Texas A&M University and North Texas Real Estate Information Systems. Homes sold for a median price of $435,000, which is 20% higher than a year ago but the same price as in May.

Higher mortgage rates and growing concerns of a recession further dampened buyer demand in June, said CoreLogic economist Selma Hepp. The firm expects U.S. price growth to slow but remain in double digits throughout the remainder of the year.

“Demand still remains robust in parts of the country, as many buyers remain enthusiastic and willing to compete for the most attractive properties,” Hepp said. “And while the inventory of for-sale homes is increasing due to fewer buyers, competition for attractive properties continues to put pressure on prices.”

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