Dallas home price increases trailed national gains in December
Property prices in the Dallas area rose the largest percentage in nearly three years in the last statewide comparison.
Property prices in the region were 8.4% higher than last year in December, according to the closely monitored Standard & Poor’s CoreLogic Case-Shiller Property Price Index.
According to the most recent estimate, nationwide prices were 10.4% higher than in December 2019.
“House prices ended 2020 in double-digit gains,” S & P’s Craig J. Lazzara said in the report. “The price increase trend that began in June 2020 has now reached its seventh month.
“When COVID-related restrictions hit the economy in early 2020, their impact on house prices was unclear,” Lazzara said. “Price growth slowed in May and June and then rose steadily. The December report emphatically continues this acceleration.”
He said the year-end national prize wins were the best since 2013.
The cities with the largest increases in home prices in December compared to last year included Phoenix (up 14.4%), Seattle (13.6%) and San Diego (13%).
The price hikes were fueled by record lows in home stocks at a time when low mortgage rates are encouraging home buying.
“These data are consistent with the view that COVID has encouraged potential buyers to move from urban apartments to suburban homes,” Lazzara said. “This could indicate a mundane shift in housing demand, or it could simply represent an acceleration of the movements that would have happened over the next few years anyway.”
The Dallas area saw one of the lowest home price increases each month among the top 20 US markets on Case-Shiller Tracks year over year. Only Chicago (7.7%) and Las Vegas (7.9%) saw less annual house price growth than Dallas.
Real estate prices in the Dallas area are still at a record high in the Case-Shiller Index. Property prices in the region have increased by more than 80% over the past decade.
The Case-Shiller Index tracks prices for specific single-family homes in each metropolitan area over time. It does not include condos and townhouses and only covers used properties.
North Texas home sales reached a record high of nearly 120,000 real estate agent sales in 2020, with average sales prices increasing 7% over the year.
“A wave of avid buyers – many of whom are new to the market – tried to take advantage of record-low mortgage rates and buy the relatively few homes for sale, which resulted in homes flying off the shelves and prices continue to grow, ”Zillow economist Matthew Speakman said in an email. “This forces potential buyers to act very quickly to bid for the home they want, increases the likelihood that the seller will make multiple bids, and ultimately puts more upward pressure on prices.
“Looking ahead, as mortgage rates remain relatively low and the wave of keen buyers continues to rise, it is unlikely that this residential real estate competition and subsequent sharp rise in prices will ease significantly in the near future.”