While many major metros hit all-time highs in April, home prices in Dallas-Fort Worth are rising slower than the national average.
D-FW home prices were up 3.4% compared to April 2023, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.
Preliminary data from the closely watched housing measure shows that’s behind the national 6.3% gain over the same period. It’s part of an ongoing trend North Texas has experienced in 2024.
Of the 20 major metros that Case-Shiller tracks, San Diego reported the largest annual increase at 10.3%. New York (9.4%) and Chicago (8.7%) rounded out the top three.
Dallas (3.4%) had one of the smallest increases in the group. Only Minneapolis (2.9%), Denver (2%) and Portland (1.7%) saw home prices grow at a slower rate.
All 20 metros reported annual gains and 13 markets are currently at all-time highs, said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices.
“For the second consecutive month, we’ve seen our National Index jump at least 1% over its previous all-time high,” Luke said in the report. “2024 is closely tracking the strong start observed last year, where March and April posted the largest rise seen prior to a slowdown in the summer and fall. Heading into summer, the market is at an all-time high, once again testing its resilience against the historically more active time of the year.”
This comes after D-FW had some of the largest home price increases in the country for most of 2021 and 2022, with year-over-year price increases of more than 10% and 20% at times.
Annual price increases reached a record 31% in April 2022. A large swath of 2023 was defined by year-over-year declines in the index.
Month over month, Dallas saw its home prices increase by 1.2%, matching the national average, according to the index’s non-seasonally adjusted data.
That monthly growth is “stronger than the seasonal increase usually seen at this time of the year,” said CoreLogic’s Chief Economist Selma Hepp.
“Dallas continues to be an attractive market in Texas and has performed relatively better than some of its counterparts, such as Austin and Houston,” Hepp said in a statement.
The Case-Shiller index is a three-month moving average that compares sales price changes of specific properties over time to provide a more accurate picture of market trends.
The index measures changes in the total value of all existing single-family housing stock. It does not sample sale prices associated with new construction, condos, apartments, multifamily dwellings or other properties that can’t be identified as single-family, according to the report’s methodology.
Other data points suggest the increase in housing supply may factor into Dallas’ pricing trends.
Dallas-Fort Worth had 3.5 months of housing inventory at the end of May — the highest since November 2012, according to data from the Texas Real Estate Research Center at Texas A&M University, North Texas Real Estate Information Systems and the MetroTex Association of REALTORS.
In May, there were more than 25,900 active listings in the Dallas-Fort Worth area, a 51.4% increase over the same period last year. Listings were up nearly 46% in April and almost 36% in March compared with 2023.
It’s unclear how buyers will respond to the increasing supply in the coming months.
While supply is increasing, interest rates are still high. The average 30-year mortgage rate for the week ending June 20 in the United States was 6.87%. Rates topped 7% in April and May.
