Dallas home price gains at the lowest pace in five years

Dallas home price gains at the lowest pace in five years | Real ...

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Dallas-area home prices were up 6.9 percent in the latest national comparison.

While the local increase was slightly larger than the nationwide gain, it was the smallest percentage price rise for Dallas home values in almost five years, according to the Standard & Poor’s/Case-Shiller Home Price Index.

North Texas home price increases have been slowing for months after hitting record levels in 2017.

A combination of larger home inventories and buyer push back against high prices has slowed the rate of area property appreciation, analysts say.

Home prices across the country were up 6.3 percent in December from a year earlier, according to Case-Shiller.

“Within the last few months, there are beginning to be some signs that gains in housing may be leveling off,” S&P’s David Blitzer said in the report. “It is too early to tell if the housing recovery is slowing.

“If it is, some moderation in price gains could be seen later this year.”

Some U.S. markets are still seeing huge jumps in home prices.

In December home prices were up 12.7 percent year-over-year in Seattle and were 11.1 percent higher in Las Vegas, according to Case-Shiller. Prices were up 9.2 percent in San Francisco.

“The rise in home prices should be causing the same nervous wonder aimed at the stock market after its recent bout of volatility,” Blitzer said. “Even considering the recovery from the financial crisis, we are experiencing a boom in home prices.”

Percentage increases in Dallas-area home prices have steadily moderated during the last year.

Even so, North Texas home prices have grown by more than 40 percent in over the past four years.

And Dallas home values in the Case-Shiller index are now at record levels and are almost 60 percent ahead of where they were at the worst of the recession in 2009.

In 2017, the median price of preowned single-family homes sold by local real estate agents rose 9 percent from 2016 levels.

Income increases in many markets aren’t keeping up with home price growth, analysts say.

“Mortgage interest rates have surged since the beginning of the year, remaining low by historic standards but, combined with fast appreciation, approaching levels where affordability may start to erode more quickly,” Zillow senior economist Aaron Terrazas said.

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