Dallas home prices up 7.1% from a year ago

Dallas home prices up 7.1% from a year ago

Dallas-area home prices were up 7.1% from a year ago in the latest nationwide comparison.

Dallas’ price increase was higher than the 6.2% nationwide annual gain in October, according to the Standard & Poor’s/Case-Shiller Home Price Index.

The Dallas-area home price growth rate has been the same for the last three months but remains below levels seen earlier in 2017.

“Home prices continue their climb supported by low inventories and increasing sales,” S&P’s David Blitzer said in the report. “Underlying the rising prices for both new and existing homes are low interest rates, low unemployment and continuing economic growth.”

The biggest home price increases were in Seattle (12.7%) and Las Vegas (10.2%).

Dallas-area home prices have risen 60% since 2009 during the recession and are at record levels. Local prices are about 50% ahead of where they were at the peak of the last housing market in 2007.

Adobe Stock

After several years of substantial increases, the rate of home price growth in North Texas has slowed in recent months. Most forecasts see smaller percentage price gains in Dallas-Fort Worth next year.

Blitzer said 2018 could bring a shift in the housing market.

“Since home prices are rising faster than wages, salaries, and inflation, some areas could see potential home buyers compelled to look at renting,” he said.

Zillow Senior Economist Aaron Terrazas said the latest Case-Shiller report shows how resilient the U.S. housing market is.

“The last few months of 2017 have clearly demonstrated the extent to which the housing market refuses to be knocked off its stride,” Terrazas said in a statement. “Sales of existing homes have risen strongly and unexpectedly, despite a severe and worsening shortage of homes actually available to buy.

“Whether and how long the housing market can continue to defy gravity, and whether the good times last into 2018, remain open questions,” he said. “But for now, the fundamentals driving the market today look unlikely to change anytime soon.”

Tribune Content Agency

Original Source