Dallas is up there with Tampa and Miami as the cities with the highest year-over-year home price increase. According to data released by S&P CoreLogic Case-Shiller U.S National Home Price NSA Index, Dallas reported a 30.8% increase in home prices in May 2022 compared to the same period last year.
(According to The Dallas Morning News, "Dallas" includes the Dallas-Fort Worth.)
Although the numbers show a slight deceleration in price gains, Craig J. Lazzara, managing director at S&P DJI says, “Growth rates are still extremely robust.” All 20 metropolitan areas included in the study cities recorded double-digit price increase over the past year; “The market's strength continues to be broadly based,” Lazzara adds.
This seems to correlate with the Federal Reserve's interest rate increase on mortgages, a process that was still ongoing when the May data was being gathered. “Accordingly, a more-challenging macroeconomic environment may not support extraordinary home price growth for much longer," continues Lazzara.
This mortgage cost blowup has made them less affordable than any point in time since 2007, according to Zillow, resulting in a drop in the demand for homes which in turn eases price growth and sales and gives inventory a much-needed boost.
Zillow reports that the trend appears to show a market that has passed an inflection point for home values during April and May. Price appreciation has transitioned from setting new record highs for 13 straight months to cooler price growth. This is the result of homebuyers pulling back their demand for homes when faced with unattainable prices.
Even though economists forecast a price-growth plateau in the near future, that does little to help new homebuyers. According to Zellow, the typical home value in Dallas is $336,596 — a 25% increase over the past year. In these conditions, rent will become the most affordable option for people looking for homes.
In case you missed it, here’s how much you need to rent in Texas’ biggest cities.
