Dallas-area home price gains slightly outperformed the national average in November.
Dallas home prices rose 5.3% from November 2017 levels while the U.S. price increase was 5.1%, CoreLogic reports.
CoreLogic is forecasting that nationwide home prices will grow less than 5% in the year ahead.
“The rise in mortgage rates has dampened buyer demand and slowed home-price growth,” Dr. Frank Nothaft, chief economist for CoreLogic, said in the report. “Interest rates for new 30-year fixed-rate loans averaged 4.9% during November, the highest monthly average since February 2011.
“These higher rates and home prices have reduced buyer affordability,” he said. “Home sellers are responding by lowering their asking price, which is reflected in the slowing growth of the CoreLogic Home Price Index.”
Along with Dallas’ 5.3% year-over-year home price gain, CoreLogic found that prices were up 6.9 percent annually in the Fort Worth area and were 5.8 percent higher in San Antonio.
Houston prices rose by just under 4% from a year ago.
And prices in the Austin area were only 3.4% higher than in November 2017.
The biggest nationwide price increase was Las Vegas’ 11.7% year-over-year gain. Denver had a 6.6% price rise.
Homeowners that CoreLogic surveyed attributed the growing home values as part of a strong national and local economy.
“A strong economy helps homeowners feel confident about the value of their property,” said Frank Martell, president and CEO of CoreLogic. “If recent declines in the stock market shake consumer confidence in the national economy, we may see homeowners’ perception of home values change and a subsequent buyers’ market emerge in 2019.”
North Texas home price increases have slowed this year due to rising inventories of homes for sale and higher mortgage rates.
Even with the declines in the rate of home appreciation, Dallas-Fort Worth home prices are at record levels and have risen more than 40% in the last five years.
Tribune Content Agency